Administration of Faraid in Malaysia
Administration of Faraid in Malaysia
Administration of Faraid in Malaysia
Background of study
Faraid or known as Islamic Inheritance Law is one of the main knowledge in Islam. Faraid is
the plural word of Al-Faridhah that brings means something that is required or the division
which has been fixed with their respective rates. Before the faraid is practiced, there are
several aspects that we need to be cleared about. There are having few things and aspects that
need to be settled which are the maintenance and burial, the deceased’s debt, the wills of the
deceased’s, the Nazar of the deceased and lastly the distribution of the remaining assets to the
heirs who entitled to. Wills literally means to connect and deliver while technically it means
the contribution of a right that is done only after the death [ CITATION Mus09 \l 17417 ]
Faraid is the study of calculation and allocation procedure of inheritance for each of the
beneficiaries according to Islamic Law. The law has been set up by Allah S.W.T precisely in
the Quran in Surah An-Nisa verse 11, 12 and 176. All the details about the heritage of each of
the beneficiaries following the condition that occur are explained in these verses. In verse 176
in Surah An-Nisa, Allah decrees that “When there are brothers and sisters, both men and
women, the male’s share is equal to that of two females…”
Understanding the basics of estate distribution is important to identify individuals who will
go through the process of distribution of the estate either sooner or later. This is because by
understanding the basics of faraid, it provides an easy way to manage and plan the
distribution of the property of the deceased person. This can avoid possible conflicts, delays
and eliminate the irresponsible division or neglect the importance of estate distribution.
Therefore, the beneficiaries should have at least the basic knowledge of knowing who started
faraid beneficiaries’ property inheritance, the right of inheritance, property type, and number,
and form of the division.
Problem Statement
LITERATURE REVIEW
Based on an article written by[ CITATION Moh11 \l 17417 ] he stated that the distribution of the
estate of the Muslims community in Malaysia is actually made based on Islamic law. Besides,
his idea was supported by article written by [ CITATION Noo11 \l 17417 ] they stated that
namely law inheritance even law the principle is applicable as civil law. This is because the
law used is only purely for administrative matters such as application procedure for
distribution of the estate, the application process for distribution jurisdiction and so on. In the
determination of the heir's such proportion each and matters related to the distribution, all
subject to legislation. For example, provisions there in the small Estates (Distribution) Act
1955 (Act 98), Section 12(7) of Act 98 provides that the distribution of the estate of the
deceased shall be in accordance with the law applicable to it [ CITATION Moh16 \l 17417 ] . This
means that for Muslims, the division of property shall be in accordance with the law
applicable to it [ CITATION Abd13 \l 17417 ] This means that for Muslims, the division of
property shall be in accordance with the law inheritance.
Managing distribution of the estate is handled by four institutions that have set each
jurisdiction which are:
Controlling the deceased’s estate which is left the only movable property and its value does
not exceed RM600, 000 according to the Akta Perbadanan Amanah Raya (Act 532). For
example, if the deceased just leave the money in savings financial institutions (BSN, ASB,
Pilgrims Fund, and EPF) vehicles (cars, motorcycles), shares and dividends [ CITATION Moh16
\l 17417 ]
The article written by [ CITATION Abd02 \l 17417 ] stated that the distribution of small estates is
within the jurisdiction of the land administrators. Only appeals go to the High Court. The
administration and distribution of non-small estates are within the jurisdiction of the High
Court even though the parties involved are Muslim. Syariah Court has the only jurisdiction
over property matters in the matter of issuing a “sijil faraid” [ CITATION JAB \l 17417 ]
Probate matters are exclusively within the jurisdiction of the High Court in accordance with
the Wills Act 1949. The Wills Act shall only apply to non-Muslims. The law applicable is the
English common law, either as codified in the Wills Act 1949, the Probate and
Administration Act 1959 (Revised in 1972) and the Rules of the High Court 1980. For
Muslims, they are governed directly by principles of hukum syarak laid down in the
recognized sources of Islamic law [ CITATION Suh18 \l 17417 ]
The distribution of the small estate is provided in the Small Estates Distribution Act 1955
(Act 98) (“the Act”). The Act provides the administration and procedure of distribution. The
maximum value of a small estate is fixed at RM600, 000. Previously it used to be only
RM25, 000 [ CITATION LAW55 \l 17417 ] It is observed that a majority of Muslim estates in this
country fall under the category of 'small estate.
An application to distribute property is made to the land administrator. The land administrator
will conduct an inquiry and normally will require the applicant to obtain “sijil faraid” from
the Shariah Court. The land administrator obtains the ' sijil faraid' from the Shariah Court that
determines the portion of the estate each beneficiary is entitled to. The land administrator
makes the distribution order accordingly. If any party dissatisfied with the order, he may
make an appeal to the High Court [ CITATION JAB \l 17417 ]
Under the Small Estates Distribution Act 1955 reference is also made to the Syariah Court for
the 'sijil faraid'. The applicant shall make a request by letter, stating the names of the
beneficiaries and their relationship to the deceased or the land administrator or the solicitor
acting for the beneficiary [ CITATION LAW55 \l 17417 ] . Practically, the Syariah Court will only
rely on the facts stated by the applicant, which are not even under oath, and calculates the
share each beneficiary is entitled to. The Syariah Court then may issue the “sijil
faraid”[ CITATION Ahm65 \l 17417 ].
The procedure for the distribution of a small estate is provided under the Small Estates
Distribution Act 1955. The Act provides inter alia that the estate duty is exempted on small
estates; sureties are not required in the application for a letter of administration in the High
Court, the land administrator has all the information on land matters and the land
administrator himself makes the endorsement on the title after the order is made.
From an article by [ CITATION Ahm89 \l 17417 ] he stated that, for a Muslims they shall make
an application to obtain a sijil faraid before he may distribute his property before the land
administrator. The application shall be made to the state syariah court where the property is
situated. The land administrator will not endorse any distribution order unless they receive
the sijil faraid issued by the Shariah court.
Probate matters or the intestate estate are exclusively within the jurisdiction of the High
Court. The Wills Act shall only apply to non-Muslims. For Muslims, they also are bound to
apply for the distribution of non-small estates to the High Court. However, the jurisdiction of
the High Court in this matter only related to the letter of administration. The laws on the
distribution of Muslims’ property still Islamic law [ CITATION Zul09 \l 17417 ]
Procedurally, in the first instance, the applicant shall apply for the grant of a letter of
administration and following that, he shall also apply for a vesting order. Before making the
vesting order, the High Court will normally require the Muslim’s applicant to obtain a sijil
faraid from the Syariah Court. The applicant shall apply to the syariah court for the sijil faraid
and make payment at a certain amount. Then he would submit the sijil faraid to get a vesting
order. The distribution order made by the High Court is made in accordance with the sijil
faraid
At the state level of district is known as distribution unit inheritance, handling property of the
deceased who left immovable property (Land) or immovable property and movable property
such as money, bank deposits and so on and its value must does not exceed RM600, 000 and
intestate according Wills Act 1959 Act force is the Small Estate (Distribution) Act 1955 (Act
98) (Amendment small estate valuation to be RM2, 000,000 enforced soon). For example, the
deceased leaves only two pieces of land or leaving two plots of land and money savings Fund
Board Haji [ CITATION Moh16 \l 17417 ]
4. Shariah Court
Shariah Court plays an important role in handling the cases determination of heirs and a part
of everyone’s heir issued the “Certificate of Inheritance”. This is based on the Enactment
Administration of Muslim states or the Administration Act Islam (Federal Territories) Act
1993 (Act 505). Next, The Shariah Court has jurisdiction in matters of Wills, grants,
endowments, illegitimate children, marriage, matrimonial property and this lineage whose
decision even closely related Shariah Court relating to matters on the distribution of the estate
[ CITATION Moh16 \l 17417 ]
Suhaimi Ab This study was Empowering Akademika They stated that for
Rahman, Rasyikah conducted to Syariah Court in Muslims, they are
Md Khalid, Adilah evaluate the the Administration governed directly by
Abd Razak & Abu position of of Islamic principles of hukum
Bakar Jaafar. Syariah Court Inheritance syarak laid down in
(2018) in According to the the recognized
The Malaysian sources of Islamic
management Federalism law
and Framewor
administration
of Islamic
inheritance in
Malaysia.
Laws of Malaysia - Small Estate Laws of The distribution of
(Distribution) Act Malaysia the small estate is
1955 provided in the Small
Estates Distribution
Act 1955. The Act
provides the
administration and
procedure of
distribution.
Jabatan Bantuan - Pentadbiran Harta Jabatan Bantuan An application to
Guaman Pusaka Guaman distribute property is
made to the land
administrator. The
land administrator
will conduct an
inquiry and normally
will require the
applicant to obtain
“sijil faraid” from the
Shariah Court.
Laws of Malaysia - Small Estate Laws of The applicant shall
(Distribution) Act Malaysia make a request by
1955 letter, stating the
names of the
beneficiaries and
their relationship to
the deceased
Ahmad Ibrahim - Islamic Law in Singapore: The Syariah Court
(1965) Malaya Singapore will only rely on the
University Press facts stated by the
applicant, which are
not even under oath,
and calculates the
share each
beneficiary is entitled
to.
Ahmad Ibrahim - Undang-Undang Dewan Bahasa A Muslims shall
(1989) Islam di dan Pustaka. make an application
Mahkamah Sivil to obtain a sijil faraid
before he may
distribute his property
before the land
administrator.
Zulkifli Hasan - An Introduction to ISRA Probate matters or the
(2009) Islamic Law of International intestate estate are
Property in Journal of exclusively within the
Malaysia Islamic Finance jurisdiction of the
High Court. The
Wills Act shall only
apply to non-
Muslims. In term of
the procedurally, he
stated that the
applicant shall apply
for the grant of a
letter of
administration and
following that, he
shall also apply for a
vesting order.
Mohd Shahril - Concept of Islamic Research From his article, he
Ahmad Razimi Inheritance Law Journal of stated that the
(2016) (Faraid) in Applied function of Pejabat
Malaysia: Issue Sciences Pembahagian Pusaka
and Challenges Kecil (PPPK) to
handling property of
the deceased who left
immovable property
(Land) or immovable
property and movable
property
Ahmad Halim Harmonising the Proceedings of He stated that, the
(2009) use of living as an the 4th authority given to
instrument for International High Court is to
Islamic Estate Conference on control the deceased
planning in Harmonisation who left property
Malaysia of Civil Law whether immovable
and Shariah property (Land) or
personal property
worth more than
RM600, 000 or
property intestate (for
non-muslim) though
its value is less than
RM600, 000.
Mohd Shahril - Concept of Islamic Research The Shariah Court
Ahmad Razimi Inheritance Law Journal of has jurisdiction in
(2016) (Faraid) in Applied matters of Wills,
Malaysia: Issue Sciences grants, endowments,
and Challenges illegitimate children,
marriage,
matrimonial property
and this lineage
whose decision even
closely related
Shariah Court
relating to matters on
the distribution of the
estate
This section includes the interview made by the researcher and interviewer to gain data for
this assignment.
There are three types of inheritance that can be subdivided in terms of faraid, namely small,
large and simple estate. For a small estate, it consists of a deceased estate that free from will
worth RM2, 000,000.00. There is having some types of property that can be considered as a
small estate, the first property is the land only. The second property is a land and a house
meanwhile the next property is a land, a house and movable property such as jewelry, shares,
savings, vehicles, furniture, clothes and many more. Next is a large estate. Other than that, it
also has a different name known as an ordinary estate. The large estate includes all types of
deceased property, either by will or without will. The large estate also consists of movable
and immovable property that worth more than RM2, 000,000.00. Besides, it also consists of
the immovable property mainly focus on land that worth more than RM2, 000,000.00. Lastly,
it consists of the movable property only such as money, shares, and vehicles even though the
value is below RM2, 000,000.00.
Other than the large and small estate, it also consists of the simple estate. The simple estate is
a property of the deceased alone and has a value not exceeding RM600, 000.00 pursuant to
the Public Trust Corporation Act 1995.
2. When is the right time to apply for the deceased's estate administration?
The application can be made at any time after the death of the deceased. Nevertheless, it is
advised that the application be made as soon as possible or at least within three (3) months
from the date of death of the deceased.
This is to avoid the possibility of beneficiaries dying prior to receiving their inheritance or the
risk of losing important documents which can further complicate the application process
and/or the administration of the estate of the deceased.
Determining the rightful beneficiaries will be carried out after the death of the deceased. If
the deceased was a Muslim, the rightful beneficiaries as stated under faraid are the father,
mother, wife, husband, sons, daughters and others. In the case of non-Muslims, the rightful
beneficiaries are stated in the Distribution Act 1958, for example, the father, mother,
husband, wife, children or offspring/issues (descendants) and others.
5. Who is entitled to the estate of the deceased if the deceased has no heir?
In the case of Muslims, the estate will be channeled to Baitul-Mal and for non-Muslims, the
Distribution Act 1958 provides for the government to be entitled to the estate.
One of the most frequently mentioned issues when talking about faraid is the outstanding
property claim because it is not being managed by the heirs. Most of the outstanding property
is belongs to Muslims. One of the factors that make this issue arise is due to the heir’s
attitude and their ignorance about this property. This is because some people in the
community do not care and consider that the task of solving the estate is a small task and not
so important.
Besides, some of them are delegating this task only to the eldest who is said to have the
responsibility of making the application. It's undeniable that some people, especially among
the Malays consider the issue of inheritance as something that is very sensitive to talk about.
This situation will give a negative impact which is it will hinder the effort of the heirs.
Besides, those who have a better understanding and knowledge regarding Faraid distribution,
it will become hard for them to perform their job due to this issue. On the other hand, it is
very unfortunate that they are labeled as greedy and desperate for the deceased's property to
cause disagreements and disputes among family members.
Bibliography
Abdul Hamid bin Haji Mohamad. (2002). Administration of Property in Malaysia: A Civil Law and
Syariah Law Perspective. 14.
Abdul Rashid & Ahmad Hassan. (2013). Pengurusan harta melalui hibah: Kepentingan dan manfaat
dari pelbagai aspek untuk kemajuan ummah. Jurnal Hadhari, 91-104.
Ahmad Halim. (2009). Harmonising the use of living trust as an instrument for Islamic estate
planning in Malaysia. Proceedings of the 4th International Conference on Harmonisation of
Civil Law and Shariah (pp. 227-241). Putrajaya: AGC New Building.
Ahmad Ibrahim. (1965). Islamic Law in Malaya. Singapore: Singapore University Press, 79.
Ahmad Ibrahim. (1989). Undang-Undang Islam di Mahkamah Sivil. Kuala Lumpur: Dewan Bahasa dan
Pustaka.
JABATAN BANTUAN GUAMAN. (n.d.). Pentadbiran Harta Pusaka. Putrajaya: JABATAN BANTUAN
GUAMAN.
LAWS OF MALAYSIA. (1955). SMALL ESTATES (DISTRIBUTION) ACT 1955. Kuala Lumpur: THE
COMMISSIONER OF LAW REVISION, MALAYSIA THE COMMISSIONER OF LAW REVISION,
MALAYSIA.
Mohammad Azmi. (2011). The Cause of Unclaimed, Late Claim or Distributed estate of deceased in
Malaysia. Proceedings of the International Conference on Sociality and Economic
Development (pp. 440-442). Ipswich: EBSCO Information Services Company.
Mohd Shahril Ahmad Razimi. (2016). Concept of Islamic Inheritance Law (Faraid) in Malaysia: Issues
and Challenges. Research Journal of Applied Sciences, 1462.
Mustofa . (2009). Kitab Fikah Mazhab Syafie, Menghuraikan Bab: Wakaf, Wasiat, Faraid. Kuala
Lumpur: Pustaka Salam Sdn.Bhd.
Noordin, Shuib, Abdul Zainol & Mohamed Adil. (2011). Problem to petition rights to the Islamic
inheritance - Practical solution found elsewhere than the legal system of Malaysia. PERINTIS
E-Journal, 44-60.
Suhaimi Ab Rahman, Rasyikah Md Khalid, Adilah Abd Razak & Abu Bakar Jaafar. (2018). Empowering
Syariah Court in the Administration of Islamic Inheritance According to the Malaysian
Federalism Framework. Akademika , 113-120.
APPENDIX
Syafiq When is the right time to apply for the deceased's estate
administration?
Respondent Permohonan boleh dibuat pada bila-bila masa selepas kematian simati.
Walaubagaimanapun, dinasihatkan permohonan dibuat dengan segera atau
sekurang-kurangnya dalam tempoh tiga (3) bulan daripada tarikh kematian
simati. Ini bagi mengelakkan berlakunya kemungkinan kematian berlapis
atau risiko kehilangan dokumen penting yang akan merumitkan lagi
urusan permohonan dan/atau pentadbiran harta pusaka simati.
Syafiq Should all beneficiaries be present during the application session?
Respondent Tidak perlu. Hanya pihak yang memohon perlu hadir pada hari kejadian
dimana mana cawangan Amanah Raya ataupun di ibu pejabat Amanah
Raya sendiri bagi mengisi borang permohonan dan mengemukakannya
berserta dokumen sokongan kepada Amanah Raya untuk tindakan susulan.
Borang permohonan dan senarai dokumen sokongan yang diperlukan
boleh dimuat turun daripada laman web rasmi Amanah Raya di
www.amanahraya.my
Syafiq Who can inherit the deceased's estate?
Respondent Penentuan waris-waris akan dilakukan selepas simati meninggal dunia.
Sekiranya simati adalah seorang Islam, waris-waris yang berhak ialah
sebagaimana ditetapkan di bawah Faraid seperti bapa, ibu, isteri, suami,
anak lelaki, anak perempuan, cucu lelaki, cucu perempuan dan sebagainya.
Bagi simati yang bukan beragama Islam, waris-waris yang berhak adalah
sebagaimana dinyatakan di bawah Akta Pembahagian 1958 iaitu seperti
ibu, bapa, suami, isteri, anak-anak dan zuriat / keturunan (issues) dan
selainnya.
Syafiq Who is entitled to the estate of the deceased if the deceased has no
heir?
Respondent Bagi yang bukan beragama Islam, Akta Pembahagian 1958
memperuntukkan bahawa Kerajaan berhak ke atas harta tersebut. Bagi
yang beragama Islam pula, harta tersebut disalurkan kepada Baitul-Mal.
Syafiq What is the issue that arises in faraid?
Respondent Antara isu yang sering diperkatakan apabila bercerita tentang faraid ini
sudah semestinya tentang tuntutan harta pusaka yang tertunggak kerana
tidak diuruskan oleh pihak pewaris. Kebanyakan harta yang tertunggak ini
adalah melibatkan harta milik orang islam. Antara faktor yang
menyebabkan isu ini timbul ialah dari sikap dan kejahilan si waris. Hal ini
kerana sebahagian daripada masyarakt bersikap tidak prihatin dan
menganggap bahawa tugas untuk menyelesaikan harta pusaka ini
merupakan satu tugas yang remeh. Ada kalanya pula, mereka bertindak
menyerahkan tugas ini hanya kepada anak sulung yang dikatakan
mempunyai tanggungjawab membuat permohonan.
Sememangnya tidak dapat dinafikan bahawa sebahagian masyarakat
terutamanya di kalangan orang Melayu menganggap isu harta pusaka
sebagai sesuatu yang amat sensitif untuk dibicarakan. Keadaan seumpama
ini secara tidak langsung telah menghalang usaha murni waris-waris yang
mempunyai pemahaman dan kesedaran berkenaan perkara tersebut untuk
melaksanakan tugas pembahagian harta. Selebihnya, amat malang sekali
apabila mereka dilabel sebagai orang yang tamak dan gilakan harta si mati
sehingga timbulnya perselisihan dan pertelingkahan di kalangan ahli
keluarga.