Estate planning in Malaysia involves choosing between civil law wills, Islamic wasiat, hibah (gift inter vivos), and living trusts. Without proper planning, your estate may be frozen for years in probate or distributed against your wishes under Faraid (Islamic inheritance law). Here is how to plan correctly.
Four Estate Planning Tools in Malaysia
| Tool | Religion | When Effective | Distribution Control | Speed |
|---|---|---|---|---|
| Civil Law Will | Non-Muslim | After death | Full freedom | Slow (probate) |
| Wasiat (Islamic Will) | Muslim | After death | Max 1/3 of estate | Slow (faraid process) |
| Hibah (Gift) | Muslim | Immediately (living) | Full freedom (during life) | Immediate |
| Private Trust | All | Immediately or on death | Full freedom | Fast (bypasses probate) |
Civil Law Will (Non-Muslims)
A will controls distribution of your estate after death. Without a will, the Distribution Act 1958 applies — distributing assets among spouse, children, and parents in fixed proportions that may not match your wishes. Write a will with a lawyer (RM200–600) or through Amanah Raya Berhad.
Wasiat (Muslim Will)
Under Islamic law, wasiat (will) can only distribute the 1/3 discretionary portion of the estate. The remaining 2/3 must follow Faraid (Islamic inheritance rules). Wasiat is restricted to non-heirs — you cannot give Faraid shares to heirs via wasiat.
Hibah: The Preferred Islamic Estate Tool
Hibah (inter vivos gift) transfers ownership of assets during the giver's lifetime, bypassing both Faraid and probate. It is effective immediately upon valid delivery, meaning the asset is no longer in the estate. Hibah is the most flexible and powerful estate planning tool for Malaysian Muslims.
Calculate your estate using our ⚖️ Estate Distribution Calculator.