Estate Administration FAQ
 
APPLICATION 
 
1. When is the most suitable time for making an application for the administration of the estate of the deceased?
The application can be made at any time after the death of the deceased.
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.
2. Who can make the application for estate administration at AmanahRaya?
The beneficiary of the deceased or any parties with a vested interest can make the application at AmanahRaya.
3. Must all the beneficiaries be present when making the application?
No. Only the party making the application needs to be present at AmanahRaya, at any of the branches to fill in the application form and to submit it together with supporting documents for further action.
The application form and the list of supporting documents that are required can be downloaded at www.amanahraya.my
4. Can the application form for the administration of the estate be sent by post?
Yes. The applicant can send the completed application form together with copies of the supporting documents to any of our branch.
If the application is sent by post, there is no need for the applicant to be present at AmanahRaya.
5. How long is the process of estate administration by AmanahRaya?
An estate consisting only of movable property is estimated to take four (4) to six (6) months.
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
6. How much is the fee?
ESTATE ADMINISTRATION FEE STRUCTURE

 

5%

for the 1st RM25,000
4%

for the next remaining balance up to RM225,000

3%

for the next remaining balance up to RM225,000

2%

for the next remaining balance up to RM500,000

1%

for any remaining balance

 

Sample calculation for estate administration valued at RM 600,000

Percentage

Details RM

Remark

5%

for the 1st RM25,000 1250 (RM25,000 x 5%)

4%

for the next remaining balance up to RM225,000 9000

(RM225,000 x 4%)

3%

for the next remaining balance up to RM250,000 7500

(RM250,000 x 3%)

2%

for the next remaining balance up to RM500,000 2000

(RM100,000 x 2%)

1% for any remaining balance 0

TOTAL FEE

19,750

 
7. Why must AmanahRaya impose fees given that it is the money of the beneficiaries?
Fees are charged by AmanahRaya on the estate of the deceased that relate to the tasks of registration of assets and beneficiaries, investigation of the assets and beneficiaries, verification of the assets and liabilities, compilation of the assets, settlement of the debts and liabilities and distribution of the estate to the beneficiaries.
Fees charged are permitted by law under the Public Trust Corporation Act 1995 and Probate and Administration Act 1959.
8. Can the fees be deducted from the estate of the deceased?
Yes, provided that the estate has assets in the form of cash/money.
9. What will happen if the beneficiaries do not pay the fees and costs incurred?
If there are no assets in the form of cash/money and the beneficiaries are reluctant/fail to pay the fees and/or the costs, the file on the estate administration will be closed and the administration of the estate will not resume until the relevant administrative fees and costs are paid.
10. Why is a Faraid Certificate needed for estate administration?
The Faraid Certificate is required as to determine who is entitled to inherit the estate of the deceased as well as the portion he/she is entitled to receive.
11. Where can the Faraid Certificate be obtained?
The Faraid Certificate can be obtained from a Shariah Court through an application by the beneficiaries of the deceased.
 

DISTRIBUTION

 
12. Who can inherit the estate of the deceased?
Determining the rightful beneficiaries will be carried out after the death of the deceased.
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.
13. Can the estate of a Muslim be inherited by a non-Muslim?
No. According to Mazhab Shafie, a Muslim cannot inherit the estate of a non-muslim and vice-versa
14. Who is entitled to the estate of a deceased if he/she does not have any beneficiaries?
In the case of Muslims, the estate will be channeled to Baitul-Mal and for non-Muslims, the Distribution Act 1958 provides for the government to be entitled to the estate.
15. If the beneficiaries agree to the equal distribution of the property, can the Faraid Certificate be exempted?
The Faraid Certificate can be exempted if the total value of the estate comprising only movable property is less than RM100,000.00 and there are only first-level beneficiaries.
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.
16. Can the estate be distributed not in accordance with Faraid or the Distribution Act 1958?
Distribution can be implemented through consensus if all the rightful beneficiaries agree.
17. What action will AmanahRaya take if anyone in the list of beneficiaries to the estate cannot be located when the estate is being administered by AmanahRaya? Where will the money be channelled?
The administration of the estate will be administered as usual but the portion to be distributed to the beneficiary who cannot be located will be retained in trust by AmanahRaya until a legal claim is made by the beneficiary.
18. How can AmanahRaya locate the missing beneficiaries of the deceased?
AmanahRaya will check through the Agency Link-Up System (ALIS) of the National Registration Department to obtain the latest information on the missing beneficiaries of the deceased.
19. Can I check on the property left by the deceased at AmanahRaya?
Checking the list of assets of the deceased at AmanahRaya can be done only by the beneficiaries and the information is limited to the assets that are administered by AmanahRaya.
20. Can the beneficiaries apply for a withdrawal of the part of the cash money from the estate for the purpose of their life maintenance while the estate is still being administered?
Yes, the beneficiaries can apply to withdraw a part of the cash money from the estate, but it will depend on the settlement of the liabilities first.
 

GENERAL

 
21. When a person refers to the bank with regard to the estate of the deceased, why does the bank advise the person to refer to AmanahRaya? What is the connection between AmanahRaya and the execution of the estate of the deceased?
Banks and their staffs are subject to secrecy laws especially those related to the exposure and disclosure of information pertaining to the affairs and procedures of a client’s accounts to any parties, including the beneficiaries.
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.
22. Where can the beneficiaries obtain the Letter of Administration?
In Malaysia, three (3) institutions have the power to issue the Letter of Administration, i.e. AmanahRaya, the Small Estate Distribution Unit of the Department of the Director-General of Lands and Mines, and the High Court (Civil).
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.

23. Can Amanah Raya administer assets in the form of vehicles that have not been fully paid for?
Usually, the purchase of a vehicle is through a hire purchase contract with a banking institution. According to legal provisions, unless the vehicle has been fully paid for as provided under the hire purchase contract, the owner of the vehicle is the banking institution and the deceased is only the hirer.

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.

24. How will a house/land that is still not fully paid for/ charged be administered?
Since the deceased was still indebted to the bank, the process of transfer of the house/land to the beneficiaries cannot be effected until the debt is settled. After the Letter of Administration is issued, the administrator will need to settle the outstanding sum first through other assets of the deceased that can be used to offset the debt.
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

25. I have an interest in the estate of the deceased because the deceased owed me money. Can I claim the debt from the estate of the deceased?
The creditor can claim the debt from the estate of the deceased during the administration of the estate of the deceased. However, the creditor must provide solid proof to make such a claim.
26. Where the deceased has appointed nominee with agencies like EPF, Tabung Haji or Insurance Companies, the payment is made directly to the nominee or to the appointed administrator?
Payment is made directly to the nominee.
27. What is the role of the nominee in the case of the estate of a Muslim?
The nominee in the estate of a Muslim acts as the executor or trustee and is responsible for conducting the distribution of the property to the rightful beneficiaries in accordance with Faraid after all debts of the deceased have been discharged.
28. If AmanahRaya has been appointed as the estate administrator, can AmanahRaya prevent payment from being made to the nominee?
No. However, the nominee has the option of surrendering the payment received to Amanah Raya to be administered and to be distributed to the legal beneficiaries after all the debts of the deceased have been settled.
30. When a pensioner dies, can the pension payouts which are still being credited into the pensioner’s account be considered as part of the estate?
Pensions received by the pensioner will end from the date of his/her death. The pension received throughout his/her life is part of the estate and the pension received after death is the property of the government of Malaysia.
31. What is meant by testate and intestate?
If the deceased left property in a valid will and it contains the procedure for the distribution of the estate among the beneficiaries, it is termed as testate.
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.

32. What are the differences between testate and intestate administration?
For a testate administration, the process of inheritance is easier and faster because the executor has been appointed by the deceased in accordance with a valid will.
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.
33. Can a beneficiary who is not named in the Will claim money/expenses/maintenance from the estate of the deceased?
This question does not arise with regard to the estate of a Muslim.
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.