If you die without a will, it’s called dying intestate. Here’s what happens in Malaysia when you pass away without a will:
- Distribution by Law: The Malaysian government steps in and distributes your assets according to the Distribution Act 1958 (for non-Muslims in Peninsular Malaysia and Sarawak). These laws dictate a fixed formula for dividing your estate among your surviving family members.
- Potential Conflicts: The pre-determined formula might not reflect your wishes. This can lead to arguments and disputes among family members who may have expected a different distribution.
- Delays and Costs: The court process to determine beneficiaries and distribute assets can be lengthy and incur legal fees, further reducing the amount your loved ones ultimately receive.
- Unintended Outcomes: Assets may end up with people you didn’t intend to inherit. For example, if you have a partner but are not married, they might not receive anything under intestacy laws.
- Lack of Control: You lose control over how your hard-earned wealth is distributed. There’s no way to ensure specific assets go to particular beneficiaries or charities you care about.
Here’s a table summarizing the key differences:
| Scenario | With a Will | Without a Will (Intestate) |
|---|---|---|
| Distribution | As per your wishes outlined in the will | According to a fixed formula dictated by law |
| Control | You have control over how your assets are distributed | You lose control over asset distribution |
| Potential Disputes | Less likely | More likely due to unclear intentions |
| Time and Cost | Faster and potentially less expensive probate process | Potentially lengthy and expensive court process |
| Beneficiaries | Assets go to your chosen beneficiaries | Assets distributed according to law, which may not align with your wish. |
By creating a will, you gain peace of mind knowing your wishes will be respected, and your loved ones are taken care of after you’re gone.