Malaysians may not be aware but here’s how it is done. 

What is a Grant of Probate? 

Before we go further, allow us to explain what a Grant of Probate (GOP) is. A GOP is a legal document you need in order to have the power and authority to administer the dead person’s estate. Estate is a loose term to refer to all the assets and properties under the deceased’s name. 

If the deceased has a valid will, then you will next need to apply for a GOP. The timeframe to apply for a GOP document takes around 4 to 6 weeks. However, that timeframe may take longer depending on how complex the matter is. It is possible for individuals to apply on their own, there will be quite a number of paperwork needed. You may hire an experienced law firm to help reduce the stress for yourself and make the process smoother. 

What if there is no Grant of Probate? 

If there is no Grant of Probate, then you will need a Letters of Administration (LOA). A LOA is issued when the deceased has no will, valid or not, in their name. Their next-of-kin will need to obtain such documents where they can apply for one from the High Court of Malaysia. 

Again, like applying and obtaining a GOP document, the process may take several weeks. Depending on how complex the situation is, the application timeframe may take longer than usual. 

Where does the Malaysian Government come in then? 

This is what the Malaysian government will do for you in such situations. They have implemented laws to ensure the next-of-kin are able to obtain their portion of the assets and properties in fairness and in the smoothest ways possible. 

a.      Distribution Act  (1953) 

In the event that your deceased family member did not leave behind a will, valid one or not, then there is the Distribution Act (1953) for you. The Malaysian government has implemented such law so that just in case you cannot obtain the assets and properties smoothly, you may go to them for help. 

You may refer to the below table for the distribution of the available assets once held by the deceased. 

Please be reminded that the abovementioned table is the distribution detail for West Malaysia and Sarawak. However, if you are from Sabah, you may be subjected to a different set of rules. 

The Distribution Act is not applicable to Muslims. It is only applicable for non-Muslim citizens and residents of Malaysia. Under Islamic Law, the deceased person’s estate will be distributed in accordance with the Holy Al-Quran and hadith. 

b.  Public Trust Corporation Act (1995) and Probate and Administration Act (1959) 

No trustee to help you distribute your assets? That’s not going to be a problem for you. Not every appoints a trustee for their own assets for various reasons. And that is perfectly all right. If you cannot appoint a trustee for reasons that are their own, the Malaysian government has their own trustee and probate divisions. No sweat there! 

A trustee will be appointed for you and your case and they will see through the case for you for the length of the case. If the deceased has left behind a sizeable estate, you may or may not have to pay a processing fee. Refer to the table below to expect roughly how much you will need to pay.

 Table Screenshot via PROPERTY GURU

Bottom Line 

People always thought the government does nothing or little for such matters for their citizens. In all honesty, they do help – just that most people are not aware of it. Just in case your family member passed away and left behind no will, you can always turn to the government for help. If you need further assistance or have any enquiries, feel free to reach out to us for help. We are more than happy to help you in this matter.

The general understanding of having probate in Malaysia is pretty standard. You have properties, assets, and money in your bank accounts. To make sure your next-of-kin gets it when you die, you will write a will saying they will get a certain percentage of it evenly distributed. If there’s a need to contest it, it will go to probate court to be sorted out. 

However, there are some people who do not have assets and money when they pass away. When they die, they have essentially left nothing to their next of kin. Or some people work in low-paying jobs, hence do not have much in their accounts when they pass away – never mind if they have properties or not. 

If you are someone who falls in the latter group, you may wonder whether there is a need to get a will or not. You may also ask if you need probate too. 

The questions are valid. In this article, we will talk about if you need probate when you pass away – if you have no assets and monies. 

How Do Assets And Money Get Distributed? 

The general understanding is that if you have a will, your assets and monies will be distributed according to what your will said. You can distribute, for example: 

• 30% to child
• 30% to spouse
• 40% to a friend or any non-family related person 

Sometimes, some people allocate a certain percentage of their assets to NGOs, religious bodies, or charities. It depends. 

However, some people may not leave a will behind. In this case, the assets will go to Bank Negara Malaysia or the Malaysian Government. The next of kin will have to bring a Letter of Administration or Grant of Probate to Bank Negara Malaysia or the Malaysian Government to get the money and assets back. Typically the assets and monies will be distributed according to the Distribution Act of Malaysia. 

If no one came to claim the assets and monies, then it will forever stay with Bank Negara Malaysia or the Malaysian Government. Sometimes there are cases where the assets and monies will be left untouched for many years. The Malaysian government also cannot use the money or assets either. 

Do You Need A Probate When You Are Penniless? 

People usually think you only need probate when you don’t have a will, have monies and assets, or when a will is being challenged. While it’s true in all cases, people will also get probate when they die penniless. 

Here are some of the scenarios when you need probate even when you didn’t have money and assets. 

1. You left behind debts 

No assets and monies do not mean you didn’t leave behind debt. Debt cannot be written off unless the institutions decide so. Let’s say you have credit card debts. Your spouse, child, or partner’s name is on the secondary card. When you’ve passed away you have left behind a sum of credit card debt. 

That means whoever has signed on with your card’s secondary card will have to help pay off your card’s debt. This is provided the secondary cardholder is still alive. 

2. Outstanding unpaid income tax 

You can’t run away from outstanding income tax you haven’t paid. Usually, when you haven’t paid for your income tax, the Malaysian government will use your Employee Provident Fund (EPF) money to pay off whatever income tax money you owe. 

You cannot contest this decision. Probates will be unable to help you in this case either. If there is any money left, it will be evenly distributed to the family members in accordance with the Distribution Act of Malaysia. 

3. Creditors you owe money too 

In life you may have owed some people any amount of money. It may not necessarily be from banks and it can be from friends. The process of probate is an opportunity for creditors to come to court and request payments for the money you owe them. If there is no money or assets left, they will not receive any money. 

Many times the court will make a final accounting for all of your assets and pay the creditors. Only then do they close the probate estate. As soon as the probate is closed, the creditors will no longer be able to get the money the deceased owe them. 

Conclusion 

The bottom line is that you will still need probate regardless of whether you’ve left behind assets and money or not. Most times probates are to address any debts left behind by the deceased, only then are the remaining money and assets (if any) be distributed to the next of kin.