Inheritance & wills in Malaysia

Faraid is administered by State Syariah Courts under Federal Constitution List II (Ninth Schedule); each of the 13 states + 3 federal territories has its own Islamic-inheritance enactment (e.g., Selangor Islamic Family Law Enactment 2003). Civil High Courts handle non-Muslims under the Distribution Act 1958. Cases involving both Muslim + non-Muslim heirs may face jurisdictional deadlocks between Syariah and civil courts (Indira Gandhi v Pengarah Jabatan 2018 FC).

Wasiyyah is governed by state Wasiyyah Enactments (e.g., Wasiyyah (Negeri Selangor) Enactment 1999, Wilayah Persekutuan Wasiyyah Enactment 2005). One-third limit applies; bequests to Quranic heirs require consent of the remaining sui juris heirs after death. Written form + signed before 2 adult Muslim witnesses; oral wasiyyah recognised in narrow cases.

Register through Amanah Raya Berhad (ARB, the national trustee), directly with the State Mufti Department, or private providers like Wasiyyah Shoppe / As-Salihin Trustee. Small estates (≤RM 600,000) can use ARB’s Summary Administration Order under the Small Estates (Distribution) Act 1955.

Two adult (18+) Muslim witnesses of sound mind (‘adala); civil-law witness rules apply for the concurrent Probate Act 1959 process needed to deal with banks and non-Islamic assets.

Collecting authority

LHDN (Inland Revenue Board)

Tax relief

Zakat payments are tax deductible against tax payable

Maximum relief

100% of tax payable

Notes

Zakat must be paid through official state Zakat authorities

State Wasiyyah Enactments codify Wajib Wasiyyah for orphaned grandchildren (states differ — Selangor Enactment 1999 s.16 is the most-cited model). Classical faraid otherwise applies as-is.

Faraid Certificate (Sijil Faraid) from the State Syariah Court determines shares → Letter of Administration or Grant of Probate from the civil High Court (or ARB for small estates) is needed to compel banks, EPF, land registry (Pejabat Tanah) and non-Islamic assets to release funds.

JAKIM (federal) and state Mufti Departments issue authoritative fatwas. Predominantly Shafi‘i by state adoption; Hanafi and Maliki opinions considered in comparative fiqh. Hibah (lifetime gift) trusts + EPF nominations are widely used to reduce estate complexity.

• EPF nominations are technically gifts during life (hibah), NOT bequests — distribution may differ from faraid unless re-allocated by hibah declaration.
• Joint-tenancy land held with non-Muslim spouses may bypass the estate entirely — check Land Registry title carefully.
• Amanah Saham unit trusts + Tabung Haji balances have their own nomination-override rules that pre-empt faraid.

• Amanah Raya Berhad (ARB)
• Department of Syariah Judiciary (JKSM)
• JAKIM (national mufti coordination)

• Is Islamic inheritance (faraid) legally recognised in Malaysia?

  Faraid is administered by State Syariah Courts under Federal Constitution List II (Ninth Schedule); each of the 13 states + 3 federal territories has its own Islamic-inheritance enactment (e.g., Selangor Islamic Family Law Enactment 2003). Civil High Courts handle non-Muslims under the Distribution Act 1958. Cases involving both Muslim + non-Muslim heirs may face jurisdictional deadlocks between Syariah and civil courts (Indira Gandhi v Pengarah Jabatan 2018 FC).

• What makes an Islamic will (Wasiyyah) legally valid in Malaysia?

  Wasiyyah is governed by state Wasiyyah Enactments (e.g., Wasiyyah (Negeri Selangor) Enactment 1999, Wilayah Persekutuan Wasiyyah Enactment 2005). One-third limit applies; bequests to Quranic heirs require consent of the remaining sui juris heirs after death. Written form + signed before 2 adult Muslim witnesses; oral wasiyyah recognised in narrow cases.

• Where do I register my will in Malaysia?

  Register through Amanah Raya Berhad (ARB, the national trustee), directly with the State Mufti Department, or private providers like Wasiyyah Shoppe / As-Salihin Trustee. Small estates (≤RM 600,000) can use ARB’s Summary Administration Order under the Small Estates (Distribution) Act 1955.

• Does Malaysia have forced-heirship rules that override an Islamic will?

  State Wasiyyah Enactments codify Wajib Wasiyyah for orphaned grandchildren (states differ — Selangor Enactment 1999 s.16 is the most-cited model). Classical faraid otherwise applies as-is.

• How does probate work in Malaysia?

  Faraid Certificate (Sijil Faraid) from the State Syariah Court determines shares → Letter of Administration or Grant of Probate from the civil High Court (or ARB for small estates) is needed to compel banks, EPF, land registry (Pejabat Tanah) and non-Islamic assets to release funds.

• How many witnesses do I need for a will in Malaysia?

  Two adult (18+) Muslim witnesses of sound mind (‘adala); civil-law witness rules apply for the concurrent Probate Act 1959 process needed to deal with banks and non-Islamic assets.

• What are the most common Islamic-will pitfalls in Malaysia?

  EPF nominations are technically gifts during life (hibah), NOT bequests — distribution may differ from faraid unless re-allocated by hibah declaration. Joint-tenancy land held with non-Muslim spouses may bypass the estate entirely — check Land Registry title carefully. Amanah Saham unit trusts + Tabung Haji balances have their own nomination-override rules that pre-empt faraid.