Malaysia Wills & Estate Guide 2026

Civil Law (Non-Muslims):

- Governed by Distribution Act 1958 - Freedom to write will and distribute as desired - Probate through civil courts - No forced heirship rules

Islamic Law (Muslims):

- Governed by Syariah law and state enactments - Faraid rules dictate distribution to heirs - Only 1/3 of estate can be given by wasiat (Islamic will) - Syariah courts handle Muslim estates

1. Testator Requirements:

- Must be at least 18 years old - Must be of sound mind (testamentary capacity) - Must act voluntarily (no undue influence)

2. Document Requirements:

- Must be in writing (typed or handwritten) - Must be signed by testator - Must be signed in presence of two witnesses - Witnesses must sign in testator's presence

3. Witness Requirements:

- Must be at least 18 years old - Must be of sound mind - Should NOT be beneficiaries - Should NOT be spouses of beneficiaries - Both must be present at same time

Identification:

- Full name and IC/passport number - Address - Declaration that this is your last will - Revocation of previous wills

Executor Appointment:

- Name primary executor - Name alternate executor - Consider professional executor for complex estates

Guardian Appointment (if applicable):

- Guardian for minor children - Alternate guardian - Consider children's relationship with guardian

Asset Distribution:

- Specific gifts (particular items to particular people) - Residuary estate (everything else) - Contingent gifts (if primary beneficiary dies first) - Consider all scenarios

Other Provisions:

- Funeral wishes - Powers granted to executor - Trust provisions if needed - Special instructions

Specific Bequest:

"I give my Rolex watch to my son Ahmad" - Specific item to specific person - If item no longer exists at death, gift fails (ademption)

General Bequest:

"I give RM100,000 to my daughter Sarah" - Amount of money - Paid from general estate

Demonstrative Bequest:

"I give RM50,000 from my Maybank account to my nephew" - Specific amount from specific source - If source insufficient, paid from general estate

Residuary Bequest:

"I give the rest of my estate to my wife" - Everything not specifically given elsewhere - Most important clause - catches everything else

Individual Executor:

- Family member or trusted friend - Knows your wishes personally - May lack expertise - May predecease you - Free (usually)

Professional Executor:

- Trust company or lawyer - Expertise and experience - Perpetual existence - Fees apply (typically 1-5% of estate) - No personal conflict

Multiple Executors:

- Can act jointly - Provides checks and balances - May cause delays if they disagree - Consider majority decision clause

Options:

- Safe deposit box (but may require probate to access) - With your lawyer - With trust company - Home safe (inform executor) - Will registry

Malaysian Will Registry:

- Maintained by Amanah Raya - Registers will location (not contents) - Helps locate will after death - Small registration fee

Best Practice:

- Keep original in secure location - Give copy to executor - Inform family that will exists - Register with will registry - Don't keep in bank safe deposit alone

Codicil:

- Amendment to existing will - Same execution requirements - Good for minor changes - Can become confusing with multiple codicils

New Will:

- Completely replaces old will - Include revocation clause - Better for significant changes - Destroy old will (clearly)

Key Principles:

- Fixed shares for designated heirs (ashab al-furud) - Male heirs generally receive double female heirs' share - Surviving spouse, parents, children have priority - Only 1/3 can be distributed by wasiat (Islamic will) - Cannot give wasiat to legal heirs - Administered through Syariah courts

Grant of Probate:

- When there IS a valid will - Executor named in will applies - Confirms executor's authority

Letter of Administration:

- When there is NO will (intestate) - Closest next-of-kin applies - Administrator appointed by court - Requires two sureties for bond

Letter of Administration with Will Annexed:

- When there IS a will BUT executor cannot act - Executor died, refuses, or is incapable - Administrator appointed to carry out will

High Court:

- Estate value exceeds RM2 million - Immovable property (land/buildings) - Complex estates

Amanah Raya (Small Estates):

- Estate value RM2 million or less - Movable property only (no land/buildings) - Faster, cheaper process

Syariah Court:

- Muslim deceased - Faraid certificate - Works alongside civil process for actual distribution

Land Office:

- Small estates with land - Value RM2 million or less - Alternative to High Court

Step 1: Locate the Will

- Check with family, lawyer, trust company - Search Malaysian Will Registry - Check safe deposit boxes

Step 2: Identify Assets and Liabilities

- Bank accounts - Properties - Investments - Insurance policies - EPF - Debts and liabilities - Prepare inventory

Step 3: Engage Lawyer

- Prepare probate petition - Gather required documents - File with appropriate court

Step 5: Court Processing

- Court examines documents - May request additional information - Publishes notice (caveat period) - Grants probate if all in order

Step 6: Grant Issued

- Grant of Probate issued - Executor now has legal authority - Can deal with assets

Step 7: Administer Estate

- Collect assets - Pay debts and expenses - File final tax returns - Distribute to beneficiaries - Prepare estate accounts

Step 8: Close Estate

- All assets distributed - Accounts finalized - Estate closed

Through Amanah Raya:

- Simpler process - Lower costs - Faster resolution - Limited to qualifying estates

Process:

1. Apply to Amanah Raya 2. Submit required documents 3. Amanah Raya processes 4. Distribution to beneficiaries

Fees: Based on estate value, generally lower than court process

Asset Location:

- Deceased didn't keep records - Assets in multiple locations - Foreign assets - Digital assets

Debts:

- Unknown creditors - Disputed debts - Priority of payment

Family Disputes:

- Challenging the will - Disputing distribution - Claims against estate

Special Assets:

- Business interests - Intellectual property - Cryptocurrency - Foreign property

EPF (Employees Provident Fund):

- Most important nomination in Malaysia - Directs EPF balance to nominees - Nominees are trustees, not absolute beneficiaries - Must still be distributed per will or intestacy law

Insurance Policies:

- Life insurance proceeds - Nominee receives directly - Bypasses probate

Unit Trusts:

- Investment fund units - Nominee receives proceeds

Bank Accounts:

- Some banks allow nomination - Joint accounts operate differently

Critical Point: EPF nomination is legally a trust, not a gift.

Example:

Ahmad nominates his wife for 100% of EPF Ahmad dies with three children Wife receives EPF as trustee Must distribute per will or intestacy rules Children have legal claim to their shares

Recent Developments:

Courts have increasingly enforced this trust interpretation. Nominees cannot simply keep EPF against legal heirs' claims.

Section 166 Policy (Trust Policy):

- Names spouse and/or children as beneficiaries - Creates trust in their favor - Bypasses estate entirely - Creditors cannot claim - No nomination by will needed

Non-Section 166 Policy:

- Nomination directs payment - But may be challenged by estate - Less protection than Section 166

Joint Tenancy:

- Right of survivorship - When one dies, other automatically owns all - Common for married couples - Cannot be given away by will - Property passes outside estate

Tenancy in Common:

- No right of survivorship - Each owns defined share - Share passes through estate - Can be given by will - Probate required for deceased's share

Converting Between Types:

Joint tenancy can be "severed" to create tenancy in common by: - Written notice - Acting on share (selling, mortgaging) - Mutual agreement

Joint Account with Mandate:

- Both signatories can operate - On death, survivor can continue - But ownership may still be disputed - Consider for convenience, not planning

Trust Account:

- Account held in trust for beneficiary - Clear beneficial ownership - Avoids probate for that asset

Potential Conflicts:

- Will says one thing, nomination says another - Which prevails? Generally nomination for that specific asset - But EPF is special (trust)

Best Practice:

- Review all nominations - Ensure will acknowledges nominations - Or ensure nominations align with will - Document your intentions - Update all together

Minor Beneficiaries:

- Cannot receive directly - Trustee needed - Consider appropriate age for distribution

Disabled Beneficiaries:

- Special needs considerations - May affect means-tested benefits - Consider trust arrangements

Non-Citizens:

- Generally can be nominees - Tax implications may differ - Check specific rules

Business Partners:

- Coordination with business succession - May have separate agreements - Insurance for buy-sell arrangements

Multiple Jurisdictions:

- Assets in home country - Assets in Malaysia - Possibly assets in third countries - Each country has different rules

Conflicting Laws:

- Which country's law applies? - Forced heirship rules in some countries - Different probate processes - Potential double taxation

Recognition of Documents:

- Will from home country may not work in Malaysia - Malaysian will may not cover home country assets - Foreign documents may need authentication

Currency and Timing:

- Assets in different currencies - Exchange rates affect values - Probate timing differs by country

For Movable Property (Cash, Investments, etc.):

Generally, law of domicile at death applies

For Immovable Property (Land, Buildings):

Law of the country where property is located applies

Practical Implication:

You may need to comply with multiple legal systems for different assets.

Domicile:

- Permanent home where you intend to remain - Legal concept, not just where you live - Affects which law governs estate - Difficult to change

Residence:

- Where you currently live - Can have multiple residences - Easier to establish and change - May affect tax but not usually succession law

Example:

British expat living in Malaysia on MM2H: - Probably still UK domiciled - UK law governs succession of movable assets - Malaysian law governs Malaysian property - Should have wills in both countries

Option 1: Single Worldwide Will

- One will covers all assets - Must be valid in all jurisdictions - Can create problems in some countries - Simplest but may not be practical

Critical Issue: Each will must NOT revoke the other!

Proper drafting:

"I revoke all previous wills relating to my assets in Malaysia only" NOT "I revoke all my previous wills" (would revoke home country will)

Countries with Forced Heirship:

- France - Germany - Italy - Spain - Japan - Most Middle Eastern countries - Many civil law countries

Effect:

- Cannot freely distribute entire estate - Certain heirs must receive minimum shares - Will provisions may be overridden

Implications for Expats:

- Home country forced heirship may affect assets - Even if living in Malaysia - Plan carefully for these situations

Malaysian Position:

- No forced heirship for non-Muslims - Freedom to distribute as desired - Except for Muslims (Faraid rules)

Inheritance/Estate Tax:

- Malaysia: No inheritance tax or estate duty - Many home countries have estate/inheritance taxes - US, UK, France, Germany, Japan, and others - May apply to worldwide assets - Planning needed to minimize

Income Tax on Inherited Assets:

- Inherited assets generally not income in Malaysia - May be taxed in home country - Or when sold (capital gains)

Example: US Citizen in Malaysia

- US estate tax may apply to worldwide estate - Exemption amount available - Malaysian assets included - Filing requirements exist

1. Inventory All Assets:

- List assets by country - Note ownership type - Identify beneficiaries for each

2. Understand Applicable Laws:

- Your domicile's law - Malaysia's law for Malaysian assets - Any forced heirship issues

3. Get Professional Advice:

- Malaysian lawyer for Malaysian aspects - Home country lawyer for home aspects - Tax advisor for cross-border taxes - Coordinate between advisors

4. Draft Appropriate Documents:

- Malaysian will for Malaysian assets - Home country will for other assets - Powers of attorney for each country - Trust arrangements if beneficial

5. Consider Trusts:

- Can hold assets in multiple countries - May avoid probate in some jurisdictions - Provide continuity and flexibility - See Trust Guide for details

6. Keep Documents Accessible:

- Store documents appropriately - Inform executors/family - Consider accessibility if abroad when needed

7. Review Regularly:

- After changes in law - After changes in circumstances - After changes in asset locations - Every few years regardless

Property in Malaysia:

- Malaysian law applies - Malaysian will needed - Probate in Malaysia required - Consider trust to avoid probate

Malaysian Spouse:

- Consider their position if you die - Immigration status implications - Provision for local family

Return to Home Country:

- What if you return home later? - Plans should be flexible - Easy to update documentation

Digital Assets:

- Cryptocurrency, online accounts - May be located anywhere - Include in planning

Challenges:

- Balancing provision for current spouse and children from previous marriage - Potential conflicts between stepchildren and biological children - Current spouse's security vs children's inheritance - Managing different expectations

Life Interest Trust:

- Spouse receives income/use during lifetime - Capital passes to children on spouse's death - Protects children's inheritance - Provides for spouse

QDOT or Similar (for international):

- May defer tax issues - Complex but effective

Separate Assets:

- Keep inherited/pre-marriage assets separate - Clear documentation - Pre/post-nuptial agreements

Insurance:

- Life insurance to equalize - Children as beneficiaries - Provides liquidity

Key Considerations:

- Be clear about intentions - Communicate with family - Update after each marriage - Consider children's ages and needs

Guardian Appointment:

- Who will raise children if both parents die? - Backup guardian needed - Consider guardian's willingness and ability - Location and values

Financial Provision:

- Children cannot manage money directly - Trust for their benefit - Age for distribution (18 may be too young) - Consider staged distribution

Trustee for Children's Trust:

- May be different from guardian - Financial expertise needed - Consider professional trustee - Oversight mechanisms

Education Planning:

- Specific funds for education - Flexibility for different paths - Consider education trusts

Example Structure:

- Parents' assets to trust - Guardian appointed for care - Professional trustee for finances - Distribution: 1/3 at 25, 1/3 at 30, 1/3 at 35 - Trustee can distribute for education, health, emergencies

Concerns:

- Direct inheritance may disqualify from government benefits - Beneficiary may not be able to manage money - Long-term care needs - Vulnerability to exploitation

Special Needs Trust:

- Holds assets for beneficiary - Supplemental support (not replacing government benefits) - Trustee manages - Beneficiary doesn't directly control - Can be funded by will or during lifetime

Trustee Selection:

- Often most important decision - Understanding of beneficiary's needs - Long-term commitment - Consider professional trustee - Successor trustees essential

Letter of Intent:

- Detailed instructions about care - Preferences, routines, needs - Not legally binding but extremely helpful - Update regularly

Challenges:

- Business continuity - Fair treatment of business vs non-business heirs - Valuation difficulties - Tax implications - Management succession

Key Questions:

- Who will run the business? - Should business stay in family? - How to value business for distribution? - How to fund buyout of non-business heirs?

Buy-Sell Agreement:

- Pre-arranged sale to partners/key employees - Price formula agreed in advance - Often funded by insurance - Provides liquidity

Family Limited Partnership/Company:

- Business held by entity - Can gift shares over time - Retain control while transferring value - Professional management

Insurance:

- Key person insurance - Provides business continuity funds - Can fund buyouts - Covers tax liabilities

Succession Planning:

- Identify successor - Training and transition - Gradual transfer of responsibility - Document key relationships and processes

Types of Digital Assets:

- Email accounts - Social media profiles - Cryptocurrency and NFTs - Online banking and investments - Digital photos and files - Domains and websites - Online businesses - Digital subscriptions

Challenges:

- Terms of service restrictions - Access and passwords - Proving ownership - Valuation (cryptocurrency especially) - Jurisdictional issues

1. Inventory:

- List all digital accounts - Note access information - Include cryptocurrencies

2. Provide Access:

- Secure password storage - Instructions for executor - Consider password manager - Don't just put passwords in will (becomes public)

3. Include in Will:

- Specific provisions for digital assets - Name digital executor if different - Instructions for handling

4. Cryptocurrency Specifically:

- Wallet access critical - Private keys must be accessible - Consider specialized custody - Hardware wallet instructions

Challenges:

- No automatic inheritance rights - Not recognized as next-of-kin - Cannot make medical decisions - May be excluded by family

Solutions:

- Comprehensive will essential - Joint ownership of key assets - Named as insurance beneficiary - Power of attorney for healthcare - Power of attorney for property - Clear documentation of intentions

Challenges:

- Multiple probate processes - Different laws apply - Recognition of documents - Tax complications

Solutions:

- Separate wills for each country - Trust to hold foreign assets - Professional advice in each jurisdiction - Coordination between advisors

Options:

- Outright bequest in will - Charitable trust - Charitable remainder trust - Foundation establishment

Considerations:

- Which charity? - Restricted or unrestricted gift? - Tax implications - Balance with family provision

Tax Benefits:

While Malaysia has no estate tax, donations may have income tax benefits during lifetime.

General Power of Attorney:

- Broad authority to act - Can cover most financial matters - Typically ends if you become mentally incapacitated - Good for temporary situations

Lasting Power of Attorney (LPA):

- Continues if you become mentally incapacitated - Introduced by Mental Capacity Act - Must be registered with Office of Public Guardian - Can cover personal welfare and/or property

Specific/Limited Power of Attorney:

- Authority for specific purpose only - Example: selling a particular property - Ends when purpose completed

LPA for Personal Welfare:

Covers decisions about: - Where you live - Day-to-day care - Medical treatment decisions - Life-sustaining treatment (if specified)

LPA for Property and Affairs:

Covers decisions about: - Buying and selling property - Managing bank accounts - Paying bills - Managing investments - Running a business

Requirements:

- Must be at least 21 years old - Must have mental capacity when making LPA - Must use prescribed form - Must be certified by certificate issuer (lawyer, doctor, accredited person) - Must be registered with Office of Public Guardian

Process:

1. Choose your donee(s) 2. Decide scope of authority 3. Complete LPA form 4. Have it certified 5. Register with OPG 6. Pay registration fee

Registration Fee: RM50 (may change)

Consider:

- Trustworthiness - Competence - Availability - Relationship - No conflicts of interest - Willingness to serve

Options:

- Spouse or partner - Adult child - Other family member - Trusted friend - Professional (lawyer, accountant) - Trust company

Multiple Donees:

- Can act jointly (together) - Can act jointly and severally (together or independently) - Can have different donees for different matters - Name replacement donees

Examples:

- "Donee must not sell my house unless..." - "Donee should consult my children on major decisions" - "Use funds first from Account X"

Property and Affairs LPA:

- Can take effect immediately (if you choose) - Or only upon loss of mental capacity - Your choice when creating

Personal Welfare LPA:

- Only takes effect when you lack mental capacity - Cannot be used while you're capable of decisions

Built-in Protections:

- Registration requirement - Certificate issuer verification - Donee duties defined by law - Court oversight available - Can be revoked while capable

Donee Duties:

- Act in your best interests - Consider your past wishes - Encourage your participation - Not restrain you unlawfully - Keep accounts - Not benefit themselves (generally)

Advance Medical Directive (AMD):

Currently limited in Malaysia: - Can refuse extraordinary life-sustaining treatment - Very specific requirements - Not widely used

Personal Welfare LPA:

Broader medical decision-making authority: - Can include life-sustaining treatment decisions - Must specifically state if you want this - Donee makes decisions based on your best interests

When to Create LPA:

- While healthy and capable - Before any concerns about capacity - Ideally in 50s or earlier - Update if circumstances change

Discuss with Donee:

- Ensure they understand role - Share your values and wishes - Discuss likely scenarios - Keep them informed

Access and Storage:

- Register with OPG (required) - Keep copy accessible - Inform family of existence - Consider giving copy to donee

Coordinate with Other Planning:

- Will - Trusts - Insurance beneficiaries - Business succession

Compared to Cost Without LPA:

- Court application: RM5,000 - RM15,000+ - Ongoing court fees - Time delays - Less control

Definitely Consult a Lawyer If:

- Complex family situation (blended family, estranged relatives) - Significant assets - Business ownership - Property in multiple countries - Special needs beneficiaries - Tax planning needed - Concerns about will contests - Previous marriage/divorce - Specific conditions or restrictions desired

Simple Situations May Not Need Lawyer:

- Very simple estate - Standard distribution to spouse and children - No real estate - No business interests - No international elements

Estate Planning Lawyers:

- Will drafting - Trust creation - Probate advice - Legal strategy

Trust Companies:

- Executor services - Trustee services - Will storage - Estate administration

Financial Planners:

- Integration with financial planning - Insurance needs analysis - Investment considerations - Retirement planning coordination

Accountants:

- Tax implications - Business valuation - Estate tax planning (for foreign estates)

Sources:

- Malaysian Bar Council directory - Referrals from trust companies - Referrals from friends/family - Financial advisor recommendations

Questions to Ask:

1. How many wills/estate plans do you handle per year? 2. What is your experience with situations like mine? 3. What will the process involve? 4. What documents will you prepare? 5. What are your fees? 6. How long will it take? 7. Do you offer will storage? 8. What about ongoing updates?

Red Flags:

- Guarantees outcomes - Refuses to explain reasoning - Pressures you to decide immediately - Very low fees (may indicate lack of experience) - Doesn't ask about your circumstances

Services Offered:

- Will writing - Will storage - Executor services - Trustee services - Estate administration

Major Trust Companies:

- Rockwills - Wasiyyah Shoppe - Amanah Raya - Bank-affiliated trust companies - Independent trust companies

Advantages of Trust Companies:

- Perpetual existence - Professional expertise - Established processes - Less emotional involvement - Insurance coverage

Disadvantages:

- Fees - Less personal - May be slower - Minimum estate requirements

Prepare Before Meeting:

- List all assets - List all debts - Family information - Existing documents (old will, insurance policies) - Clear objectives - Questions to ask

Be Honest and Complete:

- Disclose all relevant information - Including sensitive family matters - Unusual situations - Previous marriages - Estranged relationships

Ask Questions:

- If you don't understand, ask - Request explanations - Understand what documents do - Know your options

Review Documents Carefully:

- Before signing, read everything - Ask about anything unclear - Ensure accuracy of names, addresses, assets - Verify it achieves your objectives

When It Might Work:

- Very simple situation - Standard distribution - No real estate - No complications - Understand the requirements

DIY Resources:

- Online will templates (use cautiously) - Books on Malaysian estate planning - Government websites - Trust company basic services

DIY Risks:

- Invalid will (wrong execution) - Ambiguous language - Missing important provisions - Not coordinating with other documents - Not achieving objectives - Problems only discovered after death

Cost of DIY Mistake:

Usually far more than cost of professional help. A challenged or invalid will can cost tens of thousands to resolve.

Review Every 3-5 Years:

- Even if no major changes - Laws may have changed - Circumstances may have shifted - Keep plans current

Review After Major Events:

- Marriage or divorce - Birth of child or grandchild - Death of beneficiary or executor - Major asset change - Relocation - Health changes - Business changes

Update Process:

- Contact original lawyer/advisor - Review current documents - Discuss any changes - Execute new documents or codicils - Update related documents (nominations, beneficiaries)