No Will and have a small asset size? What happens to them after you pass on? The short answer is this depends on the value of your assets.
If you have a Will, it means you have died “testate” (pronounce tes-tate). However, if you do not have a will, it means you have died “intestate” (pronounce in-tes-tate).
2. Estate administration
If you have died testate, your assets will be managed based on your Will. However, if you have died intestate, who manages your assets depends on the value of your assets:
- If the value of your assets is not more than RM2 million, you have a small estate. “Small estate” must consist wholly or partly of immovable assets (eg. land, buildings). The process of managing your assets falls on the Department of Director General of Lands and Mines (or known as Jabatan Ketua Pengarah Tanah dan Galian (JKPTG)). The value of your assets is determined at the time of application to JKPTG for distribution.
- If you only have movable assets (eg. cash, unit trust) and the value is not more than RM600,000, the process of managing your assets falls on Amanah Raya Berhad (ARB).
Note that the management process is not automatic. Your potential beneficiary/person with vested interest needs to make the relevant application to the relevant bodies. Payment will also have to be made accordingly based on the size of your assets.
If you have died intestate, your estate will by and large be distributed following intestacy laws. This means that the distribution is dependent on whether you are Muslim (following syariah law) or non-Muslim (following civil law).
While the distribution application is in process, all your assets will be frozen until issuance of a distribution order by JKPTG or declaration/direction by ARB. If you have assets where its value can fluctuate quite a bit eg. shares, we encourage that you write a Will. This is because the administration process by JKPTG can take between 2-5 years depending on the nature of each matter. For asset distribution by ARB (for movable assets only), it can be a shorter time period of 6 months-1 year.
In short, having a Will ensures that your beneficiaries get inherited much faster. This is because you get to appoint your very own executor whom you trust and can work much faster than the JKPTG or ARB. Look no where else if you would like to write a Will at an affordable price today!