Property Inheritance: Faraid and the Distribution Act

When someone dies in Malaysia, who inherits their house depends first on one fundamental matter: whether the deceased was a Muslim or a non-Muslim. Two different legal systems govern the answer, and both run through different authorities before any land title can change name.

What law determines the division of an estate?

Malaysia handles inheritance through two separate frameworks. For Muslims, the estate is divided according to faraid, the Islamic law of inheritance, and the Syariah Court issues a faraid certificate confirming the list of entitled heirs and each one’s share before the estate is distributed.

For non-Muslims who die without leaving a will (dying intestate), the division is governed by the Distribution Act 1958 (Act 300). This Act applies to non-Muslims in Peninsular Malaysia and in Sarawak; Sabah and the natives of Sarawak are subject to different provisions. If a non-Muslim leaves a valid will, their estate is divided according to that will, not the Act 300 formula.

This article describes both systems descriptively. It is not legal or religious advice, and every actual case depends on the facts and on confirmation by the relevant authorities.

How does faraid divide a Muslim’s property?

Faraid assigns fixed and mandatory shares to particular heirs — spouse, children, parents and so on — based on the text of the Quran, particularly Surah an-Nisa (verses 4:11, 4:12 and 4:176). The six fixed fractions recognised are one half, one quarter, one eighth, two thirds, one third and one sixth.

Among the commonly cited fixed shares:

Heir	Situation	Share
Widower (husband)	With children	1/4
Widower (husband)	Without children	1/2
Widow (wife)	With children	1/8
Widow (wife)	Without children	1/4
A single daughter	No sons	1/2
Two or more daughters	No sons	2/3 (shared)
Each mother / father	With children	1/6

A son receives twice the share of a daughter (“to the male, a share equal to that of two females”). All calculations are made after the deceased’s debts are settled and any will is honoured.

For Muslims, a will to a beneficiary who is not a faraid heir — for example a friend, a charity, or an adopted child — is limited to one third (1/3) of the estate; this limit is also enacted in the Muslim wills enactments of some states (for example the Muslim Wills (Selangor) Enactment 1999). The remaining two thirds are divided according to faraid. Other mechanisms such as hibah (gifts during one’s lifetime) and jointly acquired property (harta sepencarian) can also affect what ultimately enters the faraid pool, and typically require separate confirmation.

How does the Distribution Act 1958 apply to non-Muslims?

When a non-Muslim dies without a will, section 6 of the Distribution Act 1958 sets the shares according to the combination of surviving heirs. In summary:

• Spouse only (no children, no parents): the spouse inherits the whole estate.
• Spouse and children (no parents): the spouse receives 1/3, and the children share the remaining 2/3 equally.
• Children only (no spouse, no parents): the children inherit the whole estate.
• Spouse and parents (no children): the spouse and the parents each receive 1/2.
• Parents only (no spouse, no children): the parents inherit the whole estate.

If there is no spouse, child or parent, the entitlement passes in order of priority to siblings, grandparents, uncles/aunts and so on. The estate vests in the government only when there is no eligible heir at all.

How does the size of the estate determine the authority?

Beyond religion, the value and type of property determine which party administers the division. The official government portal classifies estates as follows:

Type of estate	Threshold / characteristics	Main authority
Simple estate	Below RM600,000, movable property only	Amanah Raya Berhad
Small estate	Below RM5 million, containing immovable property	Land Administrator / JKPTG
Large estate	Exceeding RM5 million or involving a will	Civil High Court

For a small estate — the most common case involving a house — an heir or creditor can file a petition at the District Land Office where the property is located. The Land Administrator hears the case, obtains the heirs’ consent, then issues a Distribution Order. For a large estate or one with a will, the heirs apply at the High Court for a Grant of Probate (if there is a will) or Letters of Administration (if there is no will).

What is the role of Amanah Raya and the Land Office?

Amanah Raya Berhad is a wholly government-owned public trustee. It began as the Department of the Public Trustee in 1921 and was incorporated in 1995. Amanah Raya provides will-writing, trust and estate-administration services, and handles distribution according to faraid for Muslims or the Distribution Act 1958 for non-Muslims. Heirs may apply for Amanah Raya to act as administrator, whether or not the deceased left a will.

The final step for a house is the transfer of ownership at the Land Office. The Distribution Order, Letters of Administration, or Grant of Probate is submitted to the Land Office to register the transfer of the title to the heir’s name. Until this step is completed, the title remains in the deceased’s name, and the house cannot be freely sold or transferred — a key reason some estates remain unadministered for long periods.

What to do next

• Confirm status and basic documents: the death certificate, and for Muslims, apply for a faraid certificate at the Syariah Court; for non-Muslims, determine whether a will exists.
• Identify the estate category: check the value and whether it contains immovable property to determine whether the case goes to the Land Office, Amanah Raya, or the High Court.
• Get qualified advice: because this topic involves religious law and family rights, consult a syarie/civil lawyer or an Amanah Raya officer for your specific case, and confirm every figure against the latest official sources.

This draft was prepared with AI assistance and has not undergone expert human review. It is general information only and not legal or religious advice.