| When a person passes away, most of the assets will be frozen. The process to unlock the assets is called “Estate Administration” which is very complicated and time consuming. In order to administer the estate, individual has to ensure that the assets of the deceased are collected, maintained and distributed according to the Syariah laws. In most cases, the appointed individual does not always have the time or the know-how to administer the estate. Let our experienced professional personnel help you by administering your estate to minimize the financial and emotional impact of the death of your loved ones. 1 : What is Estate Administration? An estate refers to the assets (both movable and immovable) left by a deceased person. Thus, estate administration involves process of unlocking the assets of the deceased and to distribute the remainder of the assets to the beneficiary (ies) after settlement of debts and liabilities.
2 : What are the types of estates?
• Testacy – Where the deceased died leaving a valid Wasiat
• Intestacy – Where the deceased died without leaving a Wasiat
• Partial Intestacy - Where the deceased died leaving a Wasiat but the Wasiat does not dispose all his assets
3 : What are the necessary steps to be taken before the distribution of my assets?
• Extract death certificate
• Obtain the Sijil Faraid and Court Order
• Identify the deceased’s heirs
• Identify and collect the deceased’s assets
• Identify and settle the deceased’s debts and outstanding loans
• Identify the deceased’s last wasiat and testament or ‘wakaf’ (donation for religious purposes)
4 : Who are the Personal Representatives? Personal representatives are the appointed individuals or trust corporation such as AmTrustee Berhad to administer the deceased’s estate. Personal representatives may be an executor or an administrator.
Duties of an executor/administrator includes amongst other the following:-
- Locating and collecting the deceased’s assets;
- Ascertaining and paying estate duties (if any);
- Settling funeral expenses and other creditors’ claims against the estate; and
- Distributing the remaining assets according to the terms of the Wasiat/ Sijil Faraid.
5 : Who can apply to distribute my estate if I do not have any heirs upon my demise? The Baitulmal, Islamic State Council, chief of the village, Placement Officer and Public Trustee can become the applicant.
6 : What is the meaning of Faraid? Faraid is the Islamic law of estate distribution for Muslims according to the Al-Quran, Sunnah and Ijmak Ulama.
7 : Who can inherit my assets? The heirs and their respective entitlement are determined by Faraid. The heirs include parents, wife, husband, male and female children, male and female grandchildren and others.
8 : Does my wife have full right as a beneficiary if I have nominated her as the nominee for my EPF savings, Tabung Haji and insurance policies? Your wife as the appointed nominee has the full right to withdraw the money. However, the National Fatwa Council states that the nominee (i.e your wife) is also appointed as an executor who is responsible to divide the money among the deceased’s heirs according to Faraid.
9 : I have adopted children. I was named as the legal father in their birth certificate. Are my adopted children entitled to inherit my estate? Adopted children (eventhough legally adopted) to Muslim parents are not qualified to inherit their father’s estate.
10 : Are illegitimate children entitled to inherit my estate? Illegitimate children are qualified to inherit their mother’s estate but are not qualified to inherit their father’s estate.
11 : I have both sons and daughters. What are the portions that my son will be inheriting compared to my daughter. Also, what is the reasoning behind the said distribution? According to Faraid, son will receive 2 portions and daughter will receive 1 portion. The reasoning behind the said distribution is males are burdened with the responsibilities to provide for their families and to pay the mahar (dowry) whereas females are not required to do so. Therefore males need wealth more than females.
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