KUALA LUMPUR, Feb 23 — Approximately RM65 billion in assets, including real estate and cash belonging to deceased individuals, remain undistributed to their heirs due to a lack of estate planning in Malaysia.
Berita Harian reported that this includes RM500 million in cash under Amanah Raya Bhd (AmanahRaya), around RM60 billion in real estate overseen by the Land and Mines Office (PTG), and approximately RM4.5 billion in unclaimed money held by the National Accountant Department (JAN).
AmanahRaya, mandated by the government as a trustee and estate administrator under the Public Trust Corporation Act 1995, reports that only about 5 per cent of Malaysia’s over 34 million population have engaged in estate planning, indicating low public awareness regarding posthumous asset management.
Group Managing Director of AmanahRaya, Ahmad Feizal Sulaiman Khan, said that various issues contribute to the failure in transferring assets to rightful heirs.
He added that the estimated RM65 billion in assets has accumulated over the past decade.
Factors impeding asset distribution include the absence of estate planning or trust management by the original owners and the failure to provide necessary documentation.
This situation results in assets remaining in limbo, with ownership issues preventing, for example, land development due to unresolved inheritance matters.
Ahmad Feizal said that many assets are stalled because owners did not arrange for estate planning or trust management during their lifetimes.
Consequently, their properties and savings must be distributed to heirs according to faraid (Islamic inheritance law), a process that involves various procedures, including cases being brought to the Shariah Court for Muslims or civil courts for non-Muslims, which can be time-consuming.
For instance, distributing land requires documents such as death certificates and birth certificates of deceased parents, as well as relevant land documents, which may be difficult to obtain, leading to prolonged unresolved cases due to incomplete documentation.
Regarding unclaimed money totalling approximately RM12 billion, an estimated RM4.5 billion belongs to deceased individuals but cannot be distributed to heirs due to the absence of wills or heirs being unaware of the existence of these funds.
Estate planning is a comprehensive process that enables individuals to organise and manage their assets to ensure smooth administration or distribution after their death. Instruments in estate planning include writing wills, trust management, or hibah (gifts) as alternative solutions to existing inheritance distribution through faraid for Muslims or the Distribution Act 1959 for non-Muslims.
In November, Finance Minister II, Datuk Seri Amir Hamzah Azizan, said that RM17 billion in unclaimed money had been handed over by companies and firms to JAN.
As of October 31, RM4.2 billion of this amount had been claimed by owners or heirs, leaving a balance of RM12.8 billion in unclaimed funds.
