Question:
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“Hi Mr. Yeo, my mother recently passed away without leaving a will. Along with her passing, she left behind some savings and two jointly-owned houses with my father.
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The banker has informed us that in order to inherit these assets, we must obtain a Letter of Administration (LA) from the High Court, and the estimated cost for this process is approximately about RM10,000.”
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We have also received suggestions from a friend that we could potentially apply for a Distribution Order from the Land Office, which is a more cost-effective option.
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Could you please advise the key differences between the LA issued by the High Court and the Distribution Order issued by the Land Office? Furthermore, I would appreciate clarification on whether my mother’s case can be processed at the Land Office, as well as any specific requirements that must be fulfilled. Thank you”
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Answer:
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1. When it comes to the inheritance of property, it typically falls into two scenarios: when a deceased individual has left a will, and when they have not. In situations where there is no will, the distribution of the deceased’s estate is governed by the Distribution Act of 1958 (“DA 1958”), and the deceased’s estate will be distributed among the immediate family members of the deceased, such as surviving parents, spouse and children.
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2. When a deceased leaving immovable property and the total value of his/her estate does not exceed RM 2 million, then his/her beneficiary has the option to apply for a Distribution Order (Perintah Pembahagian) from the Land Office (Pejabat Tanah) under the provisions of the Small Estate Distribution Act 1955. The legislation aims to facilitate the distribution of assets and helps streamline the management of smaller estates.
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3. To initiate the process of obtaining a Distribution Order from the Land Office, it is necessary for the beneficiaries of the deceased to elect at least one representative (amongst themselves) to file a Petition at the Land Office. The applicant has the option to engage a lawyer to assist in the preparation & filing of the relevant application papers, and the following documents must be submitted:-
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i) Completed Application Form/ Borang A
ii) Death certificate of the deceased
iii) Photostat copy of the beneficiary’s identification card
iv) Documents that can prove the legal relationship between the beneficiary and the deceased (e.g., marriage certificate, birth certificate, etc.)
v) Documents pertaining to the deceased’s estate (e.g., title deed, bank savings book, vehicle registration card, etc.)
vi) the latest quit rent and assessment receipt of the deceased’s immovable property.
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4. Typically, approximately 6-9 months after the application is submitted, the Small Estate Distribution Department (Unit Harta Pusaka Kecil) of the Land Office will schedule a hearing for the applicant and beneficiaries to attend. Upon a successful application, the Registrar of the Land Office will grant the applicant executorship of the estate and issue a distribution order in accordance with s. 6 of the Distribution Act 1958.
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5. If all the beneficiaries of the deceased have reached a unanimous agreement on the distribution of the deceased’s estate, they can also submit their respective surat persetujuan during the hearing date. The Registrar would then proceed to issue the Distribution Order in accordance with the arrangement that has been agreed among the beneficiaries
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6. The primary distinctions between seeking a Distribution Order from the Land Office and applying for a Letter of Administration from the High Court lie in the processing time and associated costs.
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7. While the application fee at the Land Office is significantly cheaper, the application process tends to be relatively slow. It can take anywhere from 9 months to over 1 year to complete the matter.
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8. On the other hand, applying for a Letter of Administration from the High Court, though more expensive, offers a faster resolution. The entire court procedure can be completed within 6 months. Therefore, if the beneficiary has special circumstances and needs to transfer the property of the deceased as soon as possible, it would be more suitable to apply to the High Court.
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9. About the legal procedure of applying LA from the High Court, we have explained it in another legal article which can be accessed by clicking the link below.
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if you have any further inquiries or require additional assistance on this matter, please feel free to contact us: https://wa.link/q3kmv5
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You can learn other legal information from our website：https://www.yeolaw.my/
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