ESTATE PLANNING

If you die without a valid will known as dying intestate your estate will be distributed according to the law, not your personal wishes. For non-Muslims, the Distribution Act 1958 applies and divides the estate among surviving spouse, children, and parents in fixed proportions. For Muslims, the Faraid rules of Islamic inheritance law apply. In both cases, assets may not reach the people you intended, and the administration process can take significantly longer without a will. Having a valid will is the most important step in estate planning.

Yes. A Muslim in Malaysia can make a wasiat (Islamic will), but it operates within the constraints of Faraid the mandatory Islamic inheritance rules. Under Faraid, a Muslim can only bequeath up to one-third of their estate to non-heirs through a wasiat. The remaining two-thirds must be distributed according to Faraid proportions. A Muslim may also use Hibah (gifting of assets during their lifetime) as a complementary estate planning tool to provide for people outside the Faraid beneficiary classes. We advise on both wasiat and hibah structuring.

Hibah is an Islamic concept of gifting assets to a recipient during the giver’s lifetime. Unlike a will, a Hibah takes effect immediately the asset is transferred (or held in trust) while the giver is still alive, which means it does not form part of the estate upon death and is not subject to Faraid distribution. Hibah is commonly used to pass property, savings, or insurance proceeds to a specific person such as a spouse or child outside of the Faraid framework. It must be properly documented to be legally effective and to avoid disputes.

Probate is the legal process of validating a deceased person’s will and authorising the executor to administer the estate. It is typically required when the deceased owned assets — such as property, bank accounts, or shares — in their sole name. If there is a valid will, the executor named in the will applies for a Grant of Probate at the High Court. If there is no will, a family member applies for Letters of Administration instead. We guide executors and administrators through the entire process, from filing to final distribution.

The timeline varies depending on the complexity of the estate, the number of beneficiaries, and whether the estate is contested. For straightforward estates with a valid will, the process typically takes 6 to 12 months from the date of application. Estates without a will, estates with disputes, or estates involving multiple properties may take longer. Engaging an experienced estate lawyer from the outset helps avoid delays caused by incorrect filings or missing documents.

Not directly. EPF (KWSP) savings are distributed according to the nomination you made with EPF not your will. Similarly, life insurance proceeds are paid to your named beneficiary or nominees under the policy. ASB and unit trust savings also operate under their own nomination frameworks. However, if no valid nomination has been made, these assets may fall into the estate and be subject to the Distribution Act or Faraid. We advise on coordinating your will, EPF nomination, insurance nomination, and trust arrangements to ensure your full estate plan works together.

A Lasting Power of Attorney (LPA) is a legal document that authorises a trusted person to make decisions on your behalf — regarding your finances, property, or healthcare — if you lose mental capacity due to illness, accident, or old age. Without an LPA, your family may need to apply to court for a guardianship order to manage your affairs, which is a lengthy and costly process. An LPA is a prudent safeguard for any adult regardless of age We advise on and prepare LPAs for both property and personal welfare matters