Administration of Intestate Estate

When a person dies without a Wasiat, he is deemed to die intestate and an administrator or administrators must invariably be appointed to administer his estate i.e. to collate his assets and liabilities and distribute any excess to his beneficiaries after settlement of his debts in accordance with the Syariah.

The procedures governing the application for such appointment and the duties and responsibilities of the administrator are contained in a number of statutory provisions, the principal ones being those found in the Probate and Administration Act 1959.

Indeed, estate-administration can be as onerous as that of an Executor appointed under a Wasiat and it goes without saying that a wrong choice of administrators can result in subjecting the beneficiaries in abject miseries.

A perennial problem besetting duly appointed administrators, for example, concerns the application of section 35 of the Probate and Administration Act 1959 which mandates that, save for certain exceptions, two sureties are required to provide security for the due administration of the estate. The security shall be by bond in the amount equivalent to the gross value of the estate.

However, where a Trust Corporation such as as-Salihin has obtained administration it shall not be required to give security.

As a Trustee Company, we also provides service for Administration of Intestate Estate. We have the skills and experience to take on the often heavy responsibility of administering an estate and as part of the service, our duties can include the following:

  • identifying the assets and liabilities of the deceased whether in Malaysia or abroad
  • establishing who is entitled to the estate
  • applying to the relevant authorities for the requisite Faraid certificate
  • obtaining a grant of Letters of Administration
  • paying off debts
  • dealing with tax returns and liabilities
  • distributing the estate to the beneficiaries in accordance with the Faraid
  • preparing all necessary accounts and documentation