Discussions about death are generally seen as taboo even though it is an inescapable reality of life. Some people hold on to the superstition that talking about death or the distribution of their estate will somehow accelerate their demise.
Then, there are some parents or grandparents who felt that they would be kicked out of the house into an old folk care centre if they had a will drafted. This mindset has resulted in many intestacies, where one dies without a will.
And now, their next of kin are burdened with extra procedures to distribute the estate.
Parliamentary Intervention
In order to make the process easier, the parliament enacted the Small Estates Distribution Act 1955 (“SEDA 1955”) which applies to an estate which consists, wholly or partly of immovable property, and does not exceed RM2,000,000.00 in value (before the deduction of debts).
As such, the estate must have at least one immovable property (land or building) for SEDA 1955 to apply.
Otherwise, the beneficiaries could apply for a summary administration by the Amanah Raya Berhad via the Public Trust Corporation Act 1955, if the value of the estate consists of only movable property and does not exceed RM600,000.00.
Administrative Procedures
Broadly, a beneficiary or a creditor of the deceased’s estate may lodge a petition at the District Land Office where the immovable property is situated. For example, if the immovable property is situated in Bandar Utama, the appropriate Land Office to go to would be the Petaling Land and District Office.
The Director of Land and Mines of the state concerned or the Director General of Land and Mines of the Federation may order the petition to be heard or determined by the Land Administrator of any other district if it appears that such an order is in the interest of justice and it ensures the general convenience of the parties and witnesses.
The first step would be to file the application in Form A (Petition under S.8 SEDA 1955), which can now be generated online at https://myetapp.gov.my/v6/online/. The website also provides for a guideline in filling in the form as well as a checklist for the documents that will need to be prepared prior to filing the application at the Land Office. The list of documents required are reproduced below:
- One (1) copy of the completed Form A and signed before the Commissioner for Oaths/ Magistrate.
- Proof of Death – copy of death certificate/ death certificate extracted from the National Registration Department/ Burial Permit/ Letter of Oath by 2 independent witnesses who witnessed the death or attended the funeral/ Presumption of Death Order from the High Court.
- A copy of the applicant’s Identification Card is compulsory (copy of front and back cover).
- A copy of the beneficiary’s Identification Card (copy of front and back cover)/ Birth Certificate (for beneficiaries aged less than 12 years old).
- A copy of the Marriage Certificate of the deceased – if applicable.
- A copy of Registration/ Adoption of Children Certificate (For non-Muslims, if applicable).
- Title/ Grant – A certified true copy (CTC)/ official search from the Land Administrator or Registrar of title for claimed immovable assets (Submit original CTC/ official search copy together with one photocopied copy) or Two (2) copies of the Purchase of Claimed Assets/ Property if the asset is still without a title.
- A copy of current year quit rent receipts, if any.
- A copy of current year assessment tax receipt for ownership of multi-storey buildings or blocks or multi-levelled land parcels.
- A copy of the debt statement still borne by the deceased – if there are any debts.
- Other documents related to the property of the deceased included as part of the claim.
The Form A should contain information including the particulars of the deceased’s beneficiaries, creditors, the assets and liabilities of the deceased, and the cause of death of the deceased. Once Form A and the relevant required documents are prepared, Form A must be affirmed by a Commissioner of Oaths or a Magistrate. After all of the above has been done, the applicant can then file Form A with the District Land Office in which the immovable property is situated.
After Form A has been filed, the District Land Administrator will assess the value of the estate. The District Land Administrator will contact the applicant and beneficiaries regarding a hearing date. The District Land Administrator may summon and examine witnesses as well as to compel production and delivery of documents.
Distribution of Estate
The distribution of the estate will be handled on the day of the hearing.
The applicant must attend the hearing along with the originals of the documents listed above. The beneficiaries are also required to attend, however if they are unable to do so they may file a Letter of Consent via Form DDA to the Land Office.
The Letter of Consent will specify the arrangement of the distribution to which the beneficiaries consent to. By default, the Land Administrator will distribute the estate according to the Distribution Act 1948. Once the Land Administrator has been satisfied that the application is valid, he will make orders for the granting of a Letter of Administration as well as orders as to distribution.
The applicant must then use the estate of the deceased to pay off any pending liabilities of the estate and the funeral expenses before the remainder is to be distributed. A copy of the order must be filed at each relevant department regarding movable assets. For example, transfer of the vehicle will require the order to be filed with the Road Transport Department Malaysia to effect the transfer. With regards to the immovable property, the transfer is effected through the distribution order..
After the order has been granted, if the applicant intends to make any subsequent application such as to distribute the estate which was not declared earlier, they may do so through Form P.
Conclusion
In conclusion, SEDA 1955 provides an affordable and simple procedure for intestates’ next of kin to administer their affairs without going through the court process.
However, it is still recommended to have a will prepared so that their loved ones who are grieving over their death do not have to go through so much hassle to administer the estate.
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