Frozen inheritance assets in Malaysia surpass RM90b

Malaysian Reserve

5 days ago

UNCLAIMED or frozen inheritance assets in Malaysia have exceeded RM90 billion, despite ongoing fiscal reforms and economic recovery efforts.
This reflects serious gaps in estate planning and inheritance management, with stagnant wealth preventing asset circulation, disrupting family investments and widening the economic divide across generations.
Shariah lawyer Nurul Ai Li Baharuddin told Utusan Malaysia that the unclaimed assets consist of land, savings, shares and residential properties while many of which remain tied up for years due to unresolved claims.
She said a significant number of these cases involve Muslim families, where heirs often delay or avoid initiating the legal process due to family disputes, lack of documentation and uncertainty around procedures.
'Delayed distribution of inheritance directly affects family welfare. Heirs are unable to live in, sell or leverage the assets for education, investment or business,' she said.
In low-income households, the situation is more pressing, with rightful beneficiaries sometimes forced to rent or vacate homes owned by deceased family members due to administrative obstacles.
The lack of awareness and planning through legal instruments such as wills or 'hibah' further contributes to the growing volume of unclaimed assets, especially when individuals die without formal inheritance documentation.
Citing data from the Department of Shariah Judiciary Malaysia, Nurul Ai Li said over 70,000 unresolved cases related to Islamic inheritance have been recorded in Shariah courts nationwide over the past decade.
These include cases involving 'faraid' distribution, small estate claims, and delayed execution of wills or hibah, often hindered by manpower shortages in the courts, high caseloads and heirs failing to attend proceedings.
She noted that many heirs mistakenly assume that being named as a nominee gives them full ownership, when in fact nominees are responsible for managing and distributing the estate according to 'faraid' or mutual agreement.
To address these challenges, Nurul Ai Li proposed a series of legal and administrative reforms, including the integration of jurisdictions across the Small Estate Office, civil courts and Shariah courts, an expanded role for AmanahRaya Bhd and the adoption of digital platforms such as e-Pusaka to streamline the inheritance claim process. — TMR