When a person dies intestate (without leaving a valid will), there may be a delay in distribution due to the following:
Choosing an administrator: the beneficiaries may not agree on the person intending to apply for the Letter of Administration. The Probate and Administration Act 1959 requires all lawful beneficiaries to waive in writing their right to be administrator when appointing an administrator
Valuing the estate: a lot of time and manpower is required to locate, collect, assess and value all assets and liabilities. As a result, there will be increasing costs to the estate and its beneficiaries as the need for legal services, accountants, tax consultants and other professionals arises.
Finding two sureties: the administrator must find two sureties to sign an administration bond, and the sureties must have assets within the jurisdiction equivalent to the value of the deceased’s estate. However, no surety is required if:
the estate does not exceed RM50,000
a trust corporation is being appointed as the administrator
the administrator is the sole beneficiary, in which case sureties are waivered at the discretion of the court (as per Section 35 of the Probate and Administration Act 1959)
Lawful beneficiaries: When an individual dies intestate, their estate is distributed according to the Distribution Act 1958. Due to the delays caused by the factors mentioned above, sometimes the estate will have to be distributed to many beneficiaries who inherit from the original beneficiaries (who may have passed away over time), or who may have relocated to different countries. Even if there are no difficulties with having many beneficiaries or with finding them, the application of the intestacy law in Malaysia will create other difficulties as shown below, be it the Distribution Act 1958 or the Intestate Succession Ordinance 1960. In addition, the intestate will not be able to dictate the terms of the distribution of their estate to the people chosen to be beneficiaries, determine what assets are to be inherited by whom, or choose the manner of their distribution. Section 6 of the Distribution Act 1958 Provides the following