Estate Administration by Amanah Raya Berhad
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? When is the most suitable time for making an application at Amanah Raya? How long is the process of estate administration by 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? 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? How will a house/land that is still not fully paid for/ charged be administered? 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: Source: Amanah Raya Berhad
Small Estate Distribution
Small Estate refers to the estate of the Deceased consisting wholly or partially of immovable property (land/building) not exceeding RM2 million in total value. There must be immovable property (e.g. land, house, or apartment) in the name of the Deceased for Small Estates (Distribution) Act (SEDA) 1955 to apply. The administration of a small estate is governed by the SEDA 1955 in Malaysia. Applications are to be made at the Estate Distribution Unit of the Department of the Director-General of Lands and Mines (JKPTG) or the Land Office where the Deceased’s immovable property is located. If the Deceased’s immovable properties are located in several states, beneficiaries may choose one of the relevant district or state Land Offices to submit the application. The Land Office where the first petition is submitted will have the exclusive jurisdiction to resolve all of the Deceased’s estates located in all the other districts and states. Application Procedures The Applicant starts by completing Form A prescribed under the Small Estate (Distribution) Regulations. It is a simple form, available online or from the land office. In essence, it lists down all the assets and liabilities of the Deceased as well as his beneficiaries. After completing the form, it must be signed by the Applicant before a commissioner for oaths. Form A must be filed with the Land Office. Petition/Application that has been processed will go for hearing. The Deceased’s beneficiaries and other relevant parties will be given a Notice of Hearing (Borang D/S) stating the date, time and place of the hearing. The Applicant and other beneficiaries must attend the hearing, which will be conducted by the Land Administrator. Lawyers are not allowed to appear on behalf of any party before the Land Administrator except with the permission of the Land Administrator, who may grant or withhold such permission in each case as he thinks fit. Any other beneficiary who is unable to attend may submit a letter of consent by completing Form DDA, available online or from the land office, which must be signed before a Commissioner for Oaths. Form DDA will specify the beneficiary’s wishes as to the distribution of the estate and may also opt to renounce his share in favour of another beneficiary. If the Land Administrator is satisfied that the beneficiaries are in consensus for the estate to be distributed differently, the Land Administrator can make an order according to the consensus. Everyone attending the hearing must bring along their original identity card. The Applicant must also bring along the original of the other documents, copies of which were filed with the Form A. During the hearing, the Land Administrator will need to be satisfied with the particulars set out in the Form A, verify the identity of the Applicant and the beneficiaries, the assets and the beneficiaries’ entitlement. The Land Administrator will then proceed to grant LA to the applicant and to make an order for the distribution of the estate (Borang E/F/T). The distribution will generally be in accordance with the Distribution Act 1958, which determines the share each beneficiary is entitled to. For immovable property where there is a separate title, the administrator of the estate has to forward to the Land Registry or Land Office the grant of LA together with the original property title, for transfer of the property to the beneficiary. The Distribution Order must be registered at the relevant Land Office(s) (state / district where the land title(s) is / are registered). After the Distribution Order has been granted, if the Applicant intends to make any subsequent application such as to distribute the estate which was not declared earlier or to appoint a new Administrator, they may do so through Form P. Any person aggrieved by the order or decision made by the District Land Administrator may appeal to the High Court. Fees that are payable for the Grant of LA to be issued: RM10 if the value of the estate is between RM1 to RM1,000 RM30 if the value of the estate is between RM1,001 to RM50,000 0.2% of the value of the estate if it is more than RM50,000 Flow Chart Source: Department of Director General of Lands & Mines Federal