Nevertheless, it is advised that the application be made as soon as possible or at least within three (3) months from the date of death of the deceased.
This is to avoid the possibility of beneficiaries dying prior to receiving their inheritance or the risk of losing important documents which can further complicate the application process and/or the administration of the estate of the deceased.
The application form and the list of supporting documents that are required can be downloaded at www.amanahraya.my
If the application is sent by post, there is no need for the applicant to be present at AmanahRaya.
If it involves immovable property, it is estimated to take approximately 12 months (one year).
It should be remembered that the processing period is also dependent on the feedback and cooperation of the beneficiaries and third parties liaising with AmanahRaya
|for the 1st RM25,000|
for the next remaining balance up to RM225,000
for the next remaining balance up to RM250,000
for the next remaining balance up to RM500,000
for any remaining balance
Sample calculation for estate administration valued at RM 1,000,000
|for the 1st RM25,000||1250||(RM25,000 x 5%)|
|for the next remaining balance up to RM225,000||9000||
(RM225,000 x 4%)
|for the next remaining balance up to RM250,000||7500||
(RM250,000 x 3%)
|for the next remaining balance up to RM500,000||10,000||
(RM500,000 x 2%)
|1%||for any remaining balance||0||
Fees charged are permitted by law under the Public Trust Corporation Act 1995 and Probate and Administration Act 1959.
If the deceased was a Muslim, the rightful beneficiaries as stated under faraid are the father, mother, wife, husband, sons, daughters, etc.
In the case of non-Muslims, the rightful beneficiaries are stated in the Distribution Act 1958, i.e. the father, mother, husband, wife, children or offspring/issues (descendants), etc.
If the total value of the estate exceeds RM100,000.00 and consists of immovable property, or it exceeds RM100,000.00 but does not consist of immovable property, or even if the estate consists only of immovable property, then a Faraid Certificate is mandatory.
If a client of the bank dies, generally the bank will require a Letter of Administration before any information is disclosed or payment made.
Usually, the bank will ask the beneficiaries to refer to AmanahRaya because it has its own jurisdiction to issue the Letter of Administration in the form of Declaration or Order and also to effect the distribution of the estate.
The jurisdiction of those three institutions are as follows;
|Amanah Raya Berhad||Estate which comprises of movable assets worth not more than RM600,000.00.|
|Small Estates Distribution Unit||Estate which comprises of movable and immovable assets worth not more than RM2,000,000.00|
|High Court||Estate which comprises of movable and immovable assets worth more than RM2,000,000.00|
However, the beneficiaries may appoint AmanahRaya as Administrator for any type and at any value of the properties to be administered completely.
Therefore, AmanahRaya can administer the asset in the form of vehicles only if there are other assets of the deceased that have sufficient value to settle the balance of the payment due. In such a situation, AmanahRaya will liaise with the relevant banking institution to settle the outstanding balance on the vehicle.
As an alternative, the beneficiaries may have the option of second-hand vehicle financing or selling the vehicle to a third party, but both these options are subject to written consent from the relevant banking institution.
If the debt/loan on the asset is protected by Mortgage Reducing Term Assurance (MRTA)/ Mortgage Reducing Term Takaful (MRTT), then it can be used to settle the debt subject to the amount covered by the protection clause.
If the assets of the deceased/MRTA/MRTT are insufficient to settle the debt in its entirety, the creditor/mortgage holder has the right to foreclose/auction off the asset. The auction proceeds after deducting the debt of the deceased if any will be surrendered to the administrator for distribution to the rightful beneficiaries
In the case of non-Muslims, the will is valid as long as it complies with all the requirements contained in the Wills Act 1959 and the authenticity of the will is not challenged by any beneficiary/party.
In the case of Muslims, the deceased could bequeath no more than 1/3 of his/her estate to parties other than the beneficiaries (with or without the consent of the beneficiaries).
A person who died without a will describing distribution of his/her estate is said to be intestate.
Compared to intestate administration, the appointment of an administrator is subject to agreement by all the beneficiaries/ determination of the courts and this can lead to the risk of conflict among the beneficiaries resulting the process of administration being extended further.
Moreover, there is a requirement of two sureties in order to obtain the Letter of Administration for intestate administration.
Each surety must possess assets that are roughly equal in value to the estate of the deceased.
This will definitely complicate and delay the process of administering the estate.
AmanahRaya, however, is exempted by law from the requirement to provide the sureties for the administration of the estate.
It is because the deceased can bequeath 1/3 of his/her estate to a party that is not a beneficiary and the remainder distributed to the rightful beneficiaries in accordance with faraid.
For a non-Muslim, given that there is no limit on the amount that can be bequeathed, the deceased may leave the entire estate to a party to the exclusion of his/her rightful beneficiaries.
In such a situation, the law provides for any interested beneficiary under Section 3(1) of the Inheritance (Family Provision) Act 1971 or his/her representative to make an application to the court for a reasonable allocation from the net estate of the deceased for the maintenance of the beneficiary subject to other requirements in the same act.