What is a Small Estate (Pusaka Kecil)?
The Small Estates (Distribution) Act 1955 [Akta Harta Pusaka Kecil (Pembahagian) 1955], formerly known as the Small Estates Distribution Ordinance 1955, is the main law used to manage and distribute small estates in Malaysia.
In general, the Act explains what a small estate is and sets out the procedures for handling it. This includes the process from making an application, conducting the hearing, issuing the distribution order, and making an appeal to the High Court.
In addition to the Act, there are Small Estates Distribution Rules which explain the procedures to be followed and the forms to be used when dealing with small estates.
For the distribution of the estate:
For a Muslim deceased, Hukum Faraid is applied.
For a non-Muslim deceased, the Distribution Act 1958 is applied.
Why is an Application for the Distribution of a Small Estate Needed?
When a person dies, ownership of assets such as land, houses, shares and bank monies cannot simply be transferred by the family based on an agreement among themselves.
A legal process is needed to:
Establish who the beneficiaries are;
Determine each beneficiary’s entitlement;
Authorise the transfer of land/property;
Deal with bank accounts, shares and other assets;
Appoint an administrator/trustee where necessary; and
Ultimately issue a Perintah Pembahagian (Distribution Order) or other appropriate order.
The Estate Management Division of the Department of the Director General of Lands and Mines (JKPTG) was established on 1 March 1974. The main function of the division is to manage applications for the distribution of small estates valued at less than RM5 million, whether the estate consists of:
Movable assets;
Immovable assets (property/land); or
Both movable and immovable assets.
New Application under Section 8 of the Small Estates (Distribution) Act 1955
Every new application must be made using Form A online through the MyLAND website www.myland.gov.my
The following documents must be uploaded:
Hearing
All complete applications received will be processed by the relevant Estate Distribution Office, and a hearing date will be set. All parties named in the Notice of Hearing are required to attend the hearing on the appointed date. If a beneficiary who is required to attend the hearing is unable to attend, they may submit a Consent Form (Form DDA) signed in the presence of a Commissioner for Oaths.
Distribution based on mutual agreement or consent can only be carried out if all beneficiaries who are legally entitled to inherit the deceased’s estate fully agree to the proposed distribution.
Distribution Order / Letter of Administration
The Distribution Order / Letters of Administration will be issued within 30 days after the hearing is completed.
The beneficiaries must submit a copy of the order to the relevant Land Office / State Land and Mines Office (PTG) for the purpose of registering the transfer of immovable property.
For movable assets, the beneficiaries must submit a copy of the order to the relevant agency or institution responsible for the asset.
When Do You Need to Appoint a Private Valuer?
Beneficiaries may need to engage a registered private valuation firm registered with the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP) in the following situations:
You may also refer the below relevant topics:-
https://www.agilitymy.com/insight-en/why-is-a-valuation-report-essential-when-selling-your-property/
Frequently Asked Questions
1.What is a Small Estate?
A small estate is an estate valued at not more than RM5 million, comprising movable assets, immovable assets, or both.
2.Why is an application for the distribution of a Small Estate necessary?
It provides a legal process to identify the beneficiaries, determine their entitlements and legally transfer the deceased’s assets to the beneficiaries.
3.Who manages the distribution of a Small Estate?
The Estate Management Division of JKPTG manages applications for the distribution of small estates under the Small Estates (Distribution) Act 1955.
4.What happens after the application is submitted?
JKPTG will process the application, arrange a hearing, determine the beneficiaries and their entitlements, and issue a Distribution Order / Letters of Administration.
5.When is a private valuation report needed?
A private valuation may be needed for the estate application, RPGT purposes, disputes between beneficiaries, or when one beneficiary wants to buy the shares of other beneficiaries.
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