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A will is a legal document that allows you to specify how you want your property and assets to be distributed after you die. In a will, you can name an executor, who will be responsible for carrying out your wishes, and you can specify who will receive your property, how much they will receive, and any other specific instructions you may have for the distribution of your estate.
There are several reasons why you may need a will:
To plan for tax implications: A will can help you to plan for tax implications and potentially minimize the amount of taxes that your estate will owe.
If you die without a will, your property and assets will be distributed according to the laws of your state or country. This is known as “intestate succession.” The distribution of your assets will vary depending on your marital status and the laws of your state or country, but generally, your assets will be distributed as follows:
It is important to note that the distribution of your assets under intestate succession may not align with your personal preferences or priorities, and may lead to disputes or conflicts among your heirs.
The process to initiate the distribution of assets after a testator (a person who has made a will) passes away typically involves the following steps:
Obtain the Death Certificate: The first step is to obtain the testator’s death certificate. This can be done by registering the death with the National Registration Department (Jabatan Pendaftaran Negara) or the relevant local authority.
Locate the Will: If the testator had made a will, the executor or next of kin should locate the original will. It is important to find the original document as photocopies or electronic copies may not be accepted by the court.
Engage a Lawyer: It is advisable to engage a lawyer who specializes in probate matters to assist with the administration of the estate. The lawyer will guide you through the legal process and help ensure that the distribution of assets is done correctly.
Apply for Grant of Probate or Letter of Administration: The next step is to apply for a Grant of Probate or a Letter of Administration, depending on whether or not the testator had a valid will.
a. Grant of Probate: If the testator had a valid will, the executor named in the will can apply for a Grant of Probate from the High Court. The Grant of Probate confirms the validity of the will and authorizes the executor to distribute the assets according to the terms of the will.
b. Letter of Administration: If the testator did not have a valid will or did not appoint an executor, the next of kin can apply for a Letter of Administration. This is a court order that appoints an administrator to distribute the assets according to the laws of intestacy (Malaysian inheritance laws).
Prepare an Inventory of Assets and Liabilities: The executor or administrator needs to compile a comprehensive inventory of the deceased’s assets, such as bank accounts, properties, investments, and personal belongings, as well as any outstanding debts or liabilities.
Settle Debts and Taxes: Before distributing the assets to the beneficiaries, it is important to settle any outstanding debts, taxes, or liabilities of the deceased. This may involve contacting creditors, filing necessary tax returns, and paying any applicable taxes.
Distribute Assets: Once all debts and taxes have been settled, the remaining assets can be distributed among the beneficiaries according to the terms of the will or the laws of intestacy. The executor or administrator is responsible for ensuring that the distribution is carried out correctly and in accordance with the applicable laws.
Ultimately, the decision to create an Islamic Will or a Conventional Will depends on an individual’s personal beliefs and preferences. If you are a Muslim who wishes to distribute your assets according to Islamic law and principles, an Islamic Will may be more appropriate for you. An Islamic Will ensures that your assets are distributed among your family members and other beneficiaries in a way that is in line with Islamic law, and it also allows you to make specific provisions for your funeral arrangements and charitable donations.
However, if you do not follow Islamic law or do not wish to distribute your assets according to its principles, a Conventional Will may be more suitable for you. A Conventional Will allows you consistent with relevant laws, and it also provides flexibility to specify how you want your assets to be distributed.
It is recommended that you review and update your will every few years, or whenever there is a significant change in your life circumstances. Some examples of life events that may require updates to your will include:
In summary, it is recommended that you review and update your will periodically, and whenever there is a significant change in your life circumstances. This will help to ensure that your will reflects your current wishes and priorities for the distribution of your estate, and can provide peace of mind for you and your loved ones.
Residual estate refers to the portion of an estate that remains after all debts, taxes, expenses, and specific bequests have been paid or distributed. In other words, it is what is left over from an estate once all the specific gifts and distributions have been made.
For example, if you create a will that leaves specific gifts to certain individuals or organizations, such as your jewelry to your daughter, your car to your son, and a sum of money to a charity, the residual estate would be what is left over after those gifts have been distributed.
Subscribing to a digital will service offers several advantages:
Convenience: Digital will services provide an online platform where you can create, update, and manage your will from the comfort of your own home. You can access your documents anytime, anywhere, as long as you have an internet connection.
Accessibility: With a digital will service, your will is securely stored online, eliminating the risk of physical documents being lost, damaged, or misplaced. This ensures that your will is readily accessible to your loved ones and beneficiaries when needed.
Ease of updates: Life circumstances and personal preferences may change over time, requiring updates to your will. Digital will services allow you to easily make revisions or amendments to your documents without the need to recreate the entire will. This flexibility ensures that your will remains up to date and reflective of your current wishes.
Enhanced security: Digital will services often employ robust security measures to protect your confidential information. They use encryption and other safeguards to ensure that your personal and financial details are kept secure and confidential.
Professional guidance: Some digital will services provide access to legal professionals who can offer guidance and answer questions throughout the will creation process. This can be particularly helpful if you have complex assets or specific legal concerns.
Cost-effectiveness: Subscribing to a digital will service can be more cost-effective compared to traditional methods, such as hiring an attorney. These services often offer affordable subscription plans or one-time fees, making will creation and management more accessible to a wider range of individuals.
It is important to note that while digital will services can be convenient and cost-effective, they may not be suitable for everyone. If you have complex financial situations, unique family dynamics, or specific legal concerns, consulting with an attorney may be advisable to ensure that your will accurately reflects your wishes and complies with applicable laws.
In Malaysia, a will can be enforced in a court of law after the testator’s demise. The process of enforcing a will involves submitting the will to the High Court or a Shariah Court, depending on the religious beliefs of the testator. The court will review the will and ensure its validity before granting probate or letters of administration.
Probate is granted when the deceased had made a valid will, and the executor named in the will is responsible for administering the estate according to the instructions in the will. Letters of administration are granted when the deceased did not make a will or if the will is deemed invalid. In such cases, the court appoints an administrator to distribute the estate according to the laws of intestacy.
The court’s role is to ensure that the will meets the legal requirements, such as being in writing, signed by the testator, and witnessed by two or more witnesses. If the court determines that the will is valid, it will enforce the provisions of the will and oversee the distribution of assets as stated in the document.
If a will is challenged in Malaysia, the court will consider the validity of the challenge and make a decision based on the evidence presented. The following are some potential outcomes when a will is contested:
Court Proceedings: The court will initiate proceedings to hear the arguments and evidence presented by both parties—the party challenging the will (the claimant) and the party supporting the will (usually the executor or beneficiaries named in the will). The court will examine the validity of the will and assess the grounds for the challenge.
Mediation or Settlement: In some cases, the parties involved may opt for mediation or attempt to reach a settlement outside of court. Mediation can be a more cost-effective and less time-consuming alternative to litigation. If the parties can agree on a resolution, it can help avoid a protracted legal battle.
Will Validity: The court will assess the validity of the will based on Malaysian laws and requirements. If the court determines that the will is invalid, it may be entirely disregarded, or certain provisions may be invalidated, depending on the specific reasons for the challenge. In such cases, the deceased’s estate will be distributed according to the laws of intestacy.
Will Sustained: If the court finds the will to be valid and the challenge lacks merit, it will uphold the provisions of the will, and the executor or administrator named in the will can proceed with the distribution of the estate according to the testator’s wishes.
A letter of instruction is a cheat sheet for anyone involved in settling your affairs. Unlike a will, this letter has no legal authority. However, it can provide an easy-to-understand explanation of your overall estate plan to your executor and lay out your wishes to your family for things not covered by the will. In our package, it is already included as part of services provided
An Islamic Will, also known as an “Islamic Estate Planning” or “Wasiyyah,” is a legal document that outlines how a Muslim individual’s assets and wealth should be distributed after their death in accordance with Islamic principles. It follows the rules set out in Islamic law, or Shariah, which governs many aspects of a Muslim’s life, including inheritance.
Faraid is the Islamic law of inheritance that governs the distribution of assets after a Muslim individual’s death. It is based on the principles outlined in the Quran and the Sunnah (the practices and teachings of the Prophet Muhammad).
According to Faraid, certain family members are entitled to a share of the deceased’s estate, including spouses, children, parents, and siblings. The distribution of assets is based on a fixed formula that takes into account the relationship between the deceased and the inheritors, as well as the value of the estate.
Under Faraid, the distribution of assets is divided into fixed shares, or ‘furoo’, which are distributed among the inheritors in a specific order. The first category of inheritors is known as ‘Ashabul-Furud’, which includes spouses, parents, and children. The second category of inheritors is known as ‘Asaba’, which includes siblings and other relatives.
Islamic law places a strong emphasis on the fair and just distribution of assets among family members, and Faraid is designed to ensure that each inheritor receives their rightful share of the estate. It is important to note that Faraid only applies to assets that are considered part of the deceased’s estate, and does not cover assets that are held jointly or that have been designated to a specific beneficiary through a will or other legal instrument.
Faraid Calculation is the process of determining the rightful shares of inheritance for each eligible heir under Islamic law. It is based on a fixed formula that takes into account the relationship between the deceased and the inheritors, as well as the value of the estate.
The Faraid Calculation begins by identifying the assets that are part of the estate and deducting any debts or obligations that the deceased owed at the time of their death. The remaining assets are then divided into specific shares, or “furoo,” based on the relationship of the eligible heirs to the deceased.
The formula for Faraid Calculation is complex and varies based on the specific circumstances of each case, but generally, it involves dividing the estate into shares and distributing them among the eligible heirs. The shares are allocated based on a fixed formula that takes into account the relationship of the eligible heirs to the deceased, the number of heirs, and the value of the estate.
The Faraid Calculation is important to ensure that the assets of the deceased are distributed fairly and in accordance with Islamic law. It is also important to seek professional legal advice from an expert in Islamic Estate Planning to ensure that the Faraid Calculation is done correctly and that the assets are distributed in a way that reflects the wishes of the deceased and the principles of Islamic law.
On the other hand, a Conventional Will is a legal document that outlines how an individual’s assets and wealth should be distributed after their death in accordance with the laws of the country where they reside.
A gift in a will, also known as a testamentary gift, is a bequest made by the testator (the person making the will) to a specific person or entity (the beneficiary) that takes effect only after the testator’s death.
A gift in a will can be in the form of property, money, or other assets, and can be given to individuals, organizations, or charities. The testator can specify the conditions and terms of the gift in the will, such as how it should be distributed, when it should be distributed, and whether it should be given outright or in trust.
It’s important to note that a gift in a will only takes effect after the testator’s death, and can be changed or revoked by the testator at any time before that.
Yes, in a conventional will, you generally have the freedom to distribute your property any way you like, subject to certain legal restrictions and requirements. You can specify who will receive your property, how much they will receive, and any other specific instructions you may have for the distribution of your estate.
However, it is important to keep in mind that a will is a legal document, and certain legal requirements must be met to ensure that the will is valid and enforceable. For example, the testator (the person making the will) must be of legal age, have the mental capacity to make a will, and sign the will in the presence of witnesses who can attest to the testator’s signature.
Furthermore, there may be legal restrictions on the distribution of certain types of property, such as jointly owned assets, assets held in trust, or assets with specific legal requirements, such as retirement accounts or life insurance policies.
It is also important to consider the potential tax implications of the distribution of your estate, as well as any potential challenges or disputes that may arise from your chosen distribution plan.
Residual asset refers to the portion of an estate that remains after all debts, taxes, expenses, and specific bequests have been paid or distributed. In other words, it is what is left over from an estate once all the specific gifts and distributions have been made.
For example, if you create a will that leaves specific gifts to certain individuals or organizations, such as your jewelry to your daughter, your car to your son, and a sum of money to a charity, the residual estate would be what is left over after those gifts have been distributed.
The residual asset is typically distributed according to the terms of the will, which may specify how it should be divided among the beneficiaries. If the will does not provide instructions for the distribution of the residual estate, it will be distributed according to the laws of the state or country where the deceased person resided.
DanaPlus is a comprehensive inheritance plan that combines inheritance documents, estate management, and cash for heirs. It is highly affordable and accessible to all segments of society. It also helps prevent delays in estate management and conflicts among heirs.
We do not cover death caused directly or indirectly, wholly or partly, by any one of the following events:
Heirs can report the death of a member who subscribed to the DanaPlus scheme by visiting pewarisan.com.my and filling in the provided details. The heirs are required to include a copy of the death certificate/funeral permit and relevant medical reports, uploading these copies on the Pewarisan website.
Our officers will contact the heirs for further estate management and cash claim procedures provided in the DanaPlus scheme package. Cash payments will be disbursed to the heirs within 30 working days, subject to terms and conditions.
