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Distribution of Property

The Distribution Act 1958 (revised 1997) applies to an estate of an intestate only. And according to Halsbury Laws of Malaysia “the three new distinct features introduced by the amendment are”:

1. If an intestate dies leaving a spouse and no issue and no parent or parents, the surviving spouse takes the whole residuary estate absolutely. If the intestate dies leaving no issue but a spouse and a parent or parents, the surviving spouse is entitled to one-half of the estate and the parent or parents the remaining one-half.

2. If an intestate dies leaving a spouse and issue but no parent or parents, the surviving spouse takes one-third of the estate and the issue the remaining two-thirds. If the trusts in favour of the issue of the intestate fail because no child or other issue attains an absolutely vested interest, the residuary estate devolves as if the intestate had died without leaving issue.

3. Where an intestate dies leaving issue but no surviving spouse and no parent or parents, the surviving issue are entitled to the whole of the residuary estate upon the statutory trust. Where the intestate dies leaving a spouse, issue and parent or parents, the surviving spouse is entitled to one-quarter, the parent or parents one quarter while the issue the remaining one-half of the residuary estate. If the intestate dies leaving no spouse but issue and a parent or parents, the surviving issues are entitled two-thirds of the estate and the parent or parents the remaining one-third.

A testator’s freedom and liberty to dispose all of his earthly possessions without due concern for his immediate but impecunious dependants is however limited by the Inheritance (Family Provisions) Act 1971. A spouse, unmarried daughter, an infant son or a child who has some mental or physical disability and is unable to or incapable of maintaining himself or herself may be at liberty to apply to the Court on grounds of hardship and impecuniosities to interfere with the testator’s will and require the Court to make reasonable provisions for the maintenance of the said dependents. The Court may order reasonable provisions to be made out of the assets of the deceased for impecunious relatives.

This application however has to be made within six (6) months from date on which representation with regards to the Estate of the deceased is made to Court. The Court has power to enlarge this period of time if cogent and acceptable reasons are given.

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