Small Estate in Malaysia
Under Malaysian legislation, a Small Estate is characterized as the assets left behind by a deceased person, encompassing wholly or partially immovable property valued at RM2 million or less. For the Small Estates (Distribution) Act (SEDA) 1955 to be applicable, the deceased must have immovable property registered under their name.
What is Small Estate
Under Malaysian legislation, a Small Estate is characterized as the assets left behind by a deceased person, encompassing wholly or partially immovable property valued at RM2 million or less. For the Small Estates (Distribution) Act (SEDA) 1955 to be applicable, the deceased must have immovable property registered under their name.
Immovable property in this context refers to fixed assets such as:
- Land parcels: Any plot owned by the deceased, regardless of its development status
- Buildings: Buildings like houses, apartments, or commercial properties permanently affixed to the land
The Small Estates (Distribution) Act 1955 governs the administration of these estates across Malaysia. Section 3 of SEDA 1955 provides a clear definition for small estate:
"A small estate means an estate of a deceased person consisting wholly or partly of immovable property situated in any State and not exceeding two million ringgit in total value."
Frequently, when an individual passes away without leaving a will (known as dying intestate), their relatives seek guidance from legal professionals. These family members typically consult law firms to navigate the process of acquiring a Letter of Administration (LA), which is essential for the lawful distribution of the deceased person's belongings and assets.
https://www.easylaw.com.my/landoffice-disbursement
What is Letter of Administration
If a person passed away without leaving a will, their family members or anyone with an interest in the estate can apply to the High Court for a Grant of Letters of Administration to manage the estate. The High Court has the authority to appoint an administrator, considering the rights of all parties involved in the estate. Additionally, grants of Letters of Administration can also be obtained through Amanah Rakyat Berhad or the relevant district land office, as outlined in the Small Estate Distribution Act (SEDA) 1955.
To determine the value of the property, the petitioner may first conduct a market survey before submitting the petition at the land office. Once the petition is filed, the District Land Administrator will evaluate the property's value. According to Section 3(3) of SEDA, the property's value is considered to be its worth at the time the petition for probate or Letters of Administration is filed, or, in cases with multiple petitions, the value at the date of the earliest filed petition.
What is Letter of Administration
Those eligible to apply include:
- Heirs of the deceased, such as spouses, children, parents, and the Islamic Council (Baitulmal).
- Individuals holding a lien or lease on the deceased’s property.
- Amanah Raya Berhad.
- Creditors and caveators.
- Buyers who have a valid sales agreement.
- Village heads or officials from the Land Office appointed by the Land Administrator.
What is Letter of Administration
Applications should be made quickly to:
- Avoid an increase in heirs due to further deaths.
- Streamline the process of dividing the inheritance.
- Ensure that inherited assets can be utilized efficiently for all heirs.
- Prevent land from being left unused.
- Stop the deceased’s savings in banks, cooperatives, shares, or bonds from being transferred to the “Pentaftar Wang Tak Dituntut”.
How to apply for Letter of Administration for Small Estate Purpose
Applicants must submit a petition for a Grant of Letters of Administration in person at the relevant land office, along with copies of the following documents:
- Form A as required by the Small Estate (Distribution) Regulations.
- The death certificate of the deceased.
- The marriage certificate of the deceased (if applicable).
- Identity cards and birth certificates of all surviving heirs.
- A detailed list of the deceased’s assets, including share certificates, savings account statements, bank statements, motor vehicle registration, and EPF
statements. - A certified true copy of the land title or an official title search from the land office.
Receipts for current quit rent and assessments.
How to apply for Letter of Administration for Small Estate Purpose
If you need a Certified True Copy (CTC) of your land title, EasyLaw is here to assist you. Simply submit a request with the complete title details, and we will help you obtain a photocopy of your title for your small estate needs. Please note that the CTC title will not and cannot replace the original title. You may submit your request to conduct the land search in the link below:
How to get the Official Land Search and Certified True Copy of Title
If you need a Certified True Copy (CTC) of your land title, EasyLaw is here to assist you. Simply submit a request with the complete title details, and we will help you obtain a photocopy of your title for your small estate needs. Please note that the CTC title will not and cannot replace the original title. You may submit your request to conduct the land search in the link below:
https://www.easylaw.com.my/land/form
What if You Only Have The Address of The Property
No problem! EasyLaw can perform an official land search or provide a certified true copy of the title based on the property's address. This service falls under our title information extraction, where we gather the necessary details from the address to conduct the search. Once we have the information, we will assist you in completing the land search. However, please note that we are unable to assist if you only have the title deeds.
If you would like to engage in this service, you may click the link below to submit your request:
https://www.easylaw.com.my/eoti.overseas
All you need to do is submit your request and make the payment, and EasyLaw will handle the rest for you!