Every now and then, we are reminded about the unresolved inheritance issues affecting all the races in this country. No one is immune.
Just today, Minister in the Prime Minister’s Department Datuk Seri Mohd Nazri Aziz mentioned again that the estate value of deceased Malaysians that remained unclaimed due to unresolved beneficiary issues has reached RM40 billion.
Of more significance was the revelation that RM38 billion are real properties belonging to the Malays. The rest includes RM1.8 billion cash under Unclaimed Monies and RM70 million with the Employees Provident Fund, Tabung Haji, Permodalan Nasional Berhad and cooperatives.
In some cases, problems arose due to family conflicts while sometimes the beneficiaries themselves were not aware that the estate existed. Other factors, especially among the non-Muslims, included the public’s reluctance to write a Will or to disclose whether a Will had been written.
But a more critical reason among the Muslims was the general lack of awareness of inheritance under the Syariah law. While a Wasiat is useful to them in appointing an executor for the deceased’s whole estate, the distribution under the Wasiat only counts for a maximum of one-third of the value of the entire estate; the rest is decided under the Faraid. Also, for Muslims, the nominees under the Employees Provident Fund would, upon the death of the member, merely be executors or administrators of the savings.
Nazri said the problem affected all races: “…not only affect Malays, but all Malaysians, and it is sad that families have broken up because they are unaware of how the administration of estates take place after someone dies. This could lead to prolonged family disputes that may never be resolved due to the problem becoming extremely complicated and overlapping interests.”
He cited the oft-quoted example of 100 people entitled to a piece of land measuring 371.6 square metres in Kampung Baru, within Kuala Lumpur.
Click here for my article earlier this year on this same RM40 billion problem.
To know more about Islamic estate planning, visit the as-Salihin Trustee website.
To know more about Rockwills Corporation and estate planning for non-Muslims, you can contact me at ssquah-at-yahoo.com (This is an anti-spam measure. Please remember to change the -at- in my email address back to @)