What happens if a person pass away without a will?
As estate is the property of a deceased person. If a person pass away without writing a will, there are laws that determine what happens to their estate. In the absence of a written will, the deceased is said to have died intestate.
Any Malaysian (a non-Muslim) would be subjected to the Distribution Act 1958 if he or she do not have a Will upon death. In such cases, it may lead to various uncertainties on what will happen to our money and belongings upon death. A further complication is the timing of the distribution of assets may take up 2 to 8 years to complete.
Will Writing Statistics in Malaysia (Source: thestar.com.my )
- Statistics had shown that 90% of Malaysians have no valid trust to assign their estates to their next of kin.
- Various agencies claimed that close to two million inheritance claims valued at RM45bil are still frozen
What is Distribution Act 1958?
Distribution Act 1958 states that when a person passes away intestate, the property he leaves behind will be distributed among his family members. The same law applies to male and female deceased persons.Distribution Act 1968
|Remaining Family Members||Parents entitled to||Spouse entitled to||Issue entitled to|
|Parents, issue and spouse||1/4||1/4||1/2|
|Spouse and issue, but no parents||1/3||2/3|
|Parents and issue, but no spouse||1/3||2/3|
|Parents and spouse, but no issue||1/2||1/2|
|Parents only, no spouse nor issue||Whole Estate|
|Spouse only, no parents nor issue||Whole Estate|
|Issue only, no spouse nor parents||Whole Estate|
However, if a person dies leaving no parents, spouse and issue (children), his estate will go to the following persons in order of priority:
- his brothers and sisters
- his grandparents
- his uncles and aunts
- his great grandparents
- his great granduncle and grandaunts
If the above distribution of estate does not favour in your wishes on how you want to distribute your estate, a will writing would be the best way to manage your estate distribution. Hence, estates such as property, savings and other tangible assets should be written within the will so that people would have instructions and solutions in place.
Why write a Will? If you have not written one…
A Will would provide the following benefits:
- Protects your loved ones
- Protects your hard earned assets
Will writing may seems a tedious process but it is actually quick, simple and easy. From as low as RM480, our certified advisors would be able to guide you through this process with ease. Prisma Wealth’s advisors are all certified Rockwills partner and a market leader for professional will writing services in Malaysia.