Will & trust guide for Malaysians

What is a will?

A will is a legal document that sets out how your assets should be distributed after you pass away. It also lets you appoint an executor to manage your estate and guardians for your children under 18.

In Malaysia, a valid will must be in writing, signed by a person aged 18 or above who is of sound mind, and witnessed by two independent witnesses who are not beneficiaries.

What is a trust?

A trust is an arrangement where you (the settlor) transfer assets to a trustee, who holds and manages them for your beneficiaries according to the trust deed.

Trusts can start during your lifetime (a living trust) or upon your passing through your will (a testamentary trust).

What happens if I die without a will?

For non-Muslims in Peninsular Malaysia and Sabah, the Distribution Act 1958 decides who inherits. For example:

• Spouse and children (no parents): spouse ⅓, children ⅔
• Spouse and parents (no children): spouse ½, parents ½
• Spouse, children and parents: spouse ¼, children ½, parents ¼
• Your family must apply for Letters of Administration, which usually requires two sureties

Relevant laws in Malaysia

Estate planning for non-Muslims is governed mainly by:

• Wills Act 1959
• Distribution Act 1958
• Probate and Administration Act 1959
• Trustee Act 1949
• Small Estates (Distribution) Act 1955

Will vs. Trust at a glance