Malaysia (MY)
Multicultural, English-friendly Malaysia offers affordable living, world-class street food, tropical lifestyle, and a well-developed expat infrastructure in Kuala Lumpur and Penang.
Estate & Inheritance in Malaysia
Wills, intestacy, inheritance tax, and cross-border estate planning for expats.
Malaysia abolished inheritance tax (estate duty) in 1991 — there is NO inheritance tax in Malaysia as of 2026. This means property and assets can pass to beneficiaries without any Malaysian inheritance tax charge. However, the estate administration process (probate) can be complex, particularly for foreign nationals, mixed-faith families, and cross-border estates. Malaysian law applies two parallel inheritance systems: civil law (Distribution Act 1958) for non-Muslims, and Islamic law (Faraid / Hukum Faraid) for Muslims. For Muslims, Faraid is constitutionally mandated and distributes assets to prescribed relatives in fixed shares — a will cannot override Faraid for Malaysian Muslim assets. Expats on Employment Pass should consider writing a Malaysian will to simplify estate administration of Malaysian assets (EPF, bank accounts, property).
Intestacy — What Happens Without a Will
For non-Muslim deceased persons: Distribution Act 1958 applies. Intestate distribution: spouse receives 1/4 of estate if there are children (1/2 if no surviving parent of deceased); children receive 1/2 equally (or 3/4 if no parent); parents receive 1/4 (or 1/2 if no spouse or children). No distinction between assets — all estate covered. For Muslim deceased persons: Faraid distribution applies — complex fixed shares based on Islamic law, administered through the Amanah Raya Berhad public trustee or civil High Court. Faraid shares are prescribed by Islamic jurisprudence and cannot be varied by will. If a Muslim makes a will (wasiat), it applies only to 1/3 of the estate — the remaining 2/3 must follow Faraid.
Types of Valid Will
Private Will (Wasiat Awam)
Wasiat / Surat WasiatA written will executed in the presence of 2 witnesses (who are not beneficiaries). The testator (will-maker) must be 18+ years, of sound mind, and signing voluntarily. Witnesses must be present when the testator signs. For non-Muslims: covers all Malaysian assets and can direct distribution freely. For Muslims: limited to 1/3 of total estate. Should be reviewed every 3–5 years or on major life changes.
Valid until revoked by a new will or marriage (marriage revokes a will in Malaysia — write a new will after marriage). Death of a beneficiary does not automatically revoke the will.
Keep the original in a safe place (safe deposit box or with your solicitor). Inform at least one trusted person of its location. Storing with Amanah Raya provides safekeeping and executor services.
Amanah Raya Will (ARB Will)
Wasiat Amanah Raya BerhadWill drafted and stored by Amanah Raya Berhad (ARB) — the Malaysian public trustee. ARB can be named as executor, ensuring professional administration of the estate. Particularly useful for foreigners who have no family member or trusted person in Malaysia to act as executor. ARB manages the estate distribution process after death.
Valid during lifetime of testator. ARB safeguards the original and maintains a registry. Revocable by the testator at any time.
Strongly recommended for: expats without Malaysian family contacts, those with multiple international assets, and those who want professional estate administration. Amanah Raya has nationwide offices. Website: arb.com.my.
Living Will / Advance Medical Directive
Arahan Perubatan AwalInstructions regarding medical treatment preferences if the person becomes incapacitated. Malaysia does not have statutory recognition of living wills in the same way as UK or US — they are persuasive but not legally binding on doctors. Some private hospitals in Malaysia accept and retain advance directive forms. The Medical Advisory Council of Malaysia provides guidance but there is no specific legislation.
Advisory only — not legally enforceable in Malaysia.
Particularly relevant for older expats and those with serious medical conditions. Discuss with your private hospital and GP — some hospitals have their own advance directive forms. Keep a copy with your GP, hospital, and a trusted family member.
Forced Heirship
Non-Muslims: Malaysia does not have civil law forced heirship equivalent to French réserve héréditaire. A non-Muslim testator can disinherit children or relatives freely in a will. However, dependants (spouse, children, disabled relatives) may apply to court for reasonable financial provision from the estate (Civil Law Act 1956 — Inheritance (Family Provision) Act provisions). Muslims: Faraid is a form of forced heirship — heirs receive fixed Quranic shares. A Muslim cannot will away more than 1/3 of the estate to non-Faraid beneficiaries. Non-Muslim beneficiaries cannot inherit under Faraid from a Muslim deceased person (a point of significant practical importance for mixed-faith families).
EU Succession Regulation (Brussels IV)
Malaysia is not an EU member state — EU Succession Regulation 650/2012 (which allows EU citizens to choose their home country law) does not apply in Malaysia. Cross-border estates involving Malaysia and an EU country must be handled with legal advice from both Malaysian and EU country estate lawyers. HCCH Hague Conference on Private International Law succession conventions are not ratified by Malaysia. Malaysia applies its own choice of law rules (generally: immovable property governed by lex situs — the law of the country where the property is located). Malaysian property (land, condominiums) will be governed by Malaysian law regardless of testator's nationality.
Inheritance Tax
Malaysia abolished estate duty (inheritance tax) in November 1991. As of 2026: NO inheritance tax is charged on any transfer of assets by inheritance or on death. This applies equally to Malaysian residents, non-residents, and foreign nationals. There is no gift tax, estate duty, or death duty in Malaysia. The only tax that may apply near inheritance is: RPGT (Real Property Gains Tax) if property is transferred to a beneficiary and subsequently sold — the beneficiary will pay RPGT on gains from the date of original acquisition by the deceased (not from the date of inheritance).
| Relationship | Tax-Free Allowance | Tax Rate (above allowance) |
|---|---|---|
| All beneficiaries (Malaysian and foreign) | N/A — no inheritance tax | 0% — inheritance tax abolished in 1991 |
No inheritance tax. The closest recurring obligation is RPGT on eventual property sale by heirs, assessed on gains from original purchase date. Professionals advise: record the original purchase price and costs of all inherited Malaysian property, as this forms the base cost for future RPGT calculation. There is no requirement to report inherited assets to LHDN — though income generated by inherited assets (rent, dividends) is taxable as normal income.
Cross-Border & Multi-Country Estates
For expats with assets in both Malaysia and their home country: engage estate lawyers in both jurisdictions. Malaysian assets (property, EPF, bank accounts, shares in Malaysian companies) are governed by Malaysian law. Foreign assets may need separate probate proceedings in the country where they are located. Grants of Probate from Malaysia can sometimes be re-sealed in Commonwealth countries (UK, Australia, etc.) under the relevant rules — ask the foreign country's probate registry. EPF balance on death: nominated beneficiaries (registered with EPF via i-Akaun) receive full EPF balance without going through probate — this is separate from the will. Name your EPF beneficiaries. Non-nominated EPF: passes to the estate and must go through probate process at the High Court.
Certificate of Inheritance
Probate / Letters of Administration (LOA): For estates with a will: the executor applies for a Grant of Probate at the High Court (Mahkamah Tinggi). For estates without a will (intestate): an administrator applies for Letters of Administration. Filing fee: RM300–2,000 depending on estate value. Amanah Raya can handle small estates (under RM600,000) without a court order through the Small Estates (Distribution) Act 1955 — faster and cheaper. Large estates or those involving property with land title must go through the High Court. Processing: 3–18 months. For foreigners: an estate lawyer experienced in cross-border estates and representing foreign beneficiaries is essential.
Will Registration
Malaysia does not have a national centralised will registry equivalent to the UK's National Will Register. Wills are held privately by the testator, their solicitor, or with Amanah Raya Berhad if ARB is named as executor or custodian. Amanah Raya maintains its own database of wills lodged with them. To register your will: lodge with Amanah Raya (recommended for security and traceability) or store with your solicitor (with instructions to family on where to find it). Inform a trusted person of your will's location — many estate complications arise simply because family cannot locate the will.
Living Will & Healthcare Power of Attorney
Malaysia has no Lasting Power of Attorney (LPA) equivalent to UK law. However: Enduring Power of Attorney (EPA) can be executed under the Power of Attorney Act 1949 for property and financial management if the donor loses capacity — must be set up before capacity is lost. For medical decisions: there is no statutory authority to appoint a healthcare proxy (as in US/UK). Discuss preferences with family and hospital in advance. Mental health: Mental Health Act 2001 covers involuntary treatment but does not address advance directives for elective care. Expats are encouraged to execute an EPA for property management and discuss medical preferences with family and their GP.
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Estate & Inheritance
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