Estate Administration by Amanah Raya Berhad
Amanah Raya Berhad grants Letter of Administration (LA) in the form of a Declaration or Order as governed by Public Trust Corporation Act 1995 (PTCA 1995).
When a person make the application for estate administration at Amanah Raya?
The Deceased’s Estates are less or equal to RM600,000 and do not include immovable property.
What if the Estates consists only movable assets below RM50,000.00?
- For movable assets below RM50,000.00 (for example cash, bank savings account, shares, unit trust) Amanah Raya can issue LA in the form of a Direction directing payment to the rightful beneficiaries.
- Beneficiaries only need to present the direction to banks in order to receive any payment due.
When is the most suitable time for making an application at Amanah Raya?
- The application can be made at any time after the death of the deceased.
- Nevertheless, it is advised that the application be made as soon as possible or at least within three (3) months from the date of death of the deceased.
- This is to avoid the possibility of beneficiaries dying prior to receiving their inheritance or the risk of losing important documents which can further complicate the application process and/or the administration of the estate of the Deceased.
How long is the process of estate administration by Amanah Raya?
- An estate consisting only of movable property is estimated to take four (4) to six (6) months.
- If it involves immovable property, it is estimated to take approximately 12 months (one year).
- It should be remembered that the processing period is also dependent on the feedback and cooperation of the beneficiaries and third parties liaising with Amanah Raya.
Who can make the application for estate administration at Amanah Raya?
The beneficiary of the Deceased or any parties with a vested interest can make the application at Amanah Raya.
Who can inherit the estate of the Deceased?
In the case of non-Muslims, the rightful beneficiaries are stated in the Distribution Act 1958, i.e. the father, mother, husband, wife, children or offspring/issues (descendants), etc.
Who is entitled to the estate of a Deceased if he/she does not have any beneficiaries?
The Distribution Act 1958 provides for the Government to be entitled to the estate.
Can the estate be distributed not in accordance with the Distribution Act 1958?
Distribution can be implemented through consensus if all the rightful beneficiaries agree.
Must all the beneficiaries be present when making the application?
No. Only the party making the application needs to be present at Amanah Raya, at any of the branches to fill in the application form and to submit it together with supporting documents for further action.
How will I be charged?
- Fees are charged by Amanah Raya on the estate of the Deceased that relate to the tasks of registration of assets and beneficiaries, investigation of the assets and beneficiaries, verification of the assets and liabilities, compilation of the assets, settlement of the debts and liabilities and distribution of the estate to the beneficiaries.
- Fees charged are permitted by law under the Public Trust Corporation Act 1995 and Probate and Administration Act 1959.
- Amanah Raya’s Estate Administration Fee Structure:
- 5% – for the 1st RM25,000
- 4% – for the next remaining balance up to RM225,000
- 3% – for the next remaining balance up to RM250,000
- 2% – for the next remaining balance up to RM500,000
- 1% – for any remaining balance
Can the fees be deducted from the estate of the Deceased?
Yes, provided that the estate has assets in the form of cash/money.
What will happen if the beneficiaries do not pay the fees and costs incurred?
If there are no assets in the form of cash/money and the beneficiaries are reluctant/fail to pay the fees and/or the costs, the file on the estate administration will be closed and the administration of the estate will not resume until the relevant administrative fees and costs are paid.
What action will Amanah Raya take if anyone in the list of beneficiaries to the estate cannot be located when the estate is being administered by Amanah Raya?
The administration of the estate will be administered as usual but the portion to be distributed to the beneficiary who cannot be located will be retained in trust by Amanah Raya until a legal claim is made by the beneficiary.
How can Amanah Raya locate the missing beneficiaries of the Deceased?
Amanah Raya will check through the Agency Link-Up System (ALIS) of the National Registration Department to obtain the latest information on the missing beneficiaries of the Deceased.
Can I check on the property left by the deceased at Amanah Raya?
Checking the list of assets of the Deceased at Amanah Raya can be done only by the beneficiaries and the information is limited to the assets that are administered by Amanah Raya.
Can the beneficiaries apply for a withdrawal of the part of the cash money from the estate for the purpose of their life maintenance while the estate is still being administered?
Yes, the beneficiaries can apply to withdraw a part of the cash money from the estate, but it will depend on the settlement of the liabilities first.
Can Amanah Raya administer assets in the form of vehicles that have not been fully paid for?
- Amanah Raya can administer the asset in the form of vehicles only if there are other assets of the deceased that have sufficient value to settle the balance of the payment due. In such a situation, Amanah Raya will liaise with the relevant banking institution to settle the outstanding balance on the vehicle.
- As an alternative, the beneficiaries may have the option of second-hand vehicle financing or selling the vehicle to a third party, but both these options are subject to written consent from the relevant banking institution.
How will a house/land that is still not fully paid for/ charged be administered?
- Since the Deceased was still indebted to the bank, the process of transfer of the house/land to the beneficiaries cannot be effected until the debt is settled. After the Letter of Administration is issued, the Administrator will need to settle the outstanding sum first through other assets of the deceased that can be used to offset the debt.
- If the debt/loan on the asset is protected by Mortgage Reducing Term Assurance (MRTA)/ Mortgage Reducing Term Takaful (MRTT), then it can be used to settle the debt subject to the amount covered by the protection clause.
- If the assets of the deceased/MRTA/MRTT are insufficient to settle the debt in its entirety, the creditor/mortgage holder has the right to foreclose/auction off the asset. The auction proceeds after deducting the debt of the Deceased if any will be surrendered to the Administrator for distribution to the rightful beneficiaries.
Where the deceased has appointed nominee with agencies like EPF, Tabung Haji or Insurance Companies, the payment is made directly to the nominee or to the appointed Administrator?
Payment is made directly to the nominee.
If Amanah Raya has been appointed as the Estate Administrator, can Amanah Raya prevent payment from being made to the nominee?
No.
Can a beneficiary who is not named in the Will claim money/expenses/maintenance from the estate of the Deceased?
In such a situation, the law provides for any interested beneficiary under Section 3(1) of the Inheritance (Family Provision) Act 1971 or his/her representative to make an application to the court for a reasonable allocation from the net estate of the deceased for the maintenance of the beneficiary subject to other requirements in the same act.
Can Amanah Raya administer estates with movable and immovable assets above RM600,000.00?
Yes, but Amanah Raya has to apply to the High Court under Section 13 Public Trust Corporation Act 1995. Amanah Raya can file a petition in the High Court for the following reasons:
- To administer estates with movable and immovable assets above RM600,000.00;
- To obtain Grant of Probate for estates where the deceased left a Will (testate);
- To obtain Grant of Letters of Administration for estates where the Deceased passed away without a Will (intestate);
- To replace an Executor who passed away before the administration of an Estate is completed;
- To replace an Administrator who is unable to complete the duties to administer an estate;
- To replace an Executor who has declined the appointment by the Deceased.
Source: Amanah Raya Berhad