What Happens to Your Assets if You Die Without a Will in Malaysia?

Despite the constant reminder of setting up a Will, there are still a significant amount of people who die without a Will. The reasons for this could be lack of knowledge, lack of money or simply forgotten about it. In this article, we will discuss what happens to your assets if you die without a Will in Malaysia.

According to the Distribution Act 1958, a person is deemed to be "intestate" when they die without a Will or with an incomplete Will where some of their interests in property is not mentioned in their Will.

The distribution of the immovable property of a person deceased intestate is by the Distribution Act 1958. Following this Distribution Act 1958, the distribution of assets are as follows:

Situations

1. Only spouse remaining: Spouse inherits 100% of the estate.

2. Only children remaining: Children inherit 100% of the estate.

3. Only parents remaining: Parents inherit 100% of the estate.

4. Spouse and children remaining: Spouse inherits 1/3, children inherit 2/3 of the estate.

5. Spouse and parents remaining: Spouse and parents each inherit 1/2 of the estate.

6. Parents and children remaining: Parents inherit 1/3, children inherit 2/3 of the estate.

7. Spouse, children and parents remaining: Spouse inherits 1/4, children inherit 2/4, and parents inherit 1/4 of the estate.

If a person dies without leaving a will and has no surviving spouse, children, or parents, the estate will be distributed among their siblings, parents' siblings, grandparents, great-grandparents, and great-grandparents' siblings. Here is a more detailed breakdown of the distribution:

1. Siblings: Siblings will inherit the estate in equal shares.

2. Parents' siblings: If there are no surviving siblings, the estate will be distributed among the deceased's parents' siblings in equal shares.

3. Grandparents: If there are no surviving siblings or parents' siblings, the estate will be distributed among the deceased's grandparents in equal shares.

4. Great-grandparents: If there are no surviving grandparents, the estate will be distributed among the deceased's great-grandparents in equal shares.

5. Great-grandparents' siblings: If there are no surviving great-grandparents, the estate will be distributed among the deceased's great-grandparents' siblings in equal shares.

In the absence of any of these relatives, the estate will then fall to the government.

In conclusion, regardless of a person's wealth or the abundance of their assets, creating a Will is highly encouraged.