What Does Amanah Raya Berhad Do in Estate Administration in Malaysia?

Amanah Raya Berhad (ARB) is a government-owned trust company that can administer the estates of people who have died, write and keep wills, and act as trustee. Its most distinctive estate role is summary administration: ARB can administer an estate worth RM600,000 or less that consists only of movable assets, such as bank balances, shares and unit trusts, without the family having to go to the High Court. ARB can also be named as executor in a will or appointed as administrator, but it is only one of three routes for dealing with an estate in Malaysia. Which route applies depends on the size of the estate, the type of assets and whether there is a will.

This guide explains what ARB does, when its route may be relevant to your family, and how it differs from small estate distribution and High Court administration.

Background: what Amanah Raya Berhad is

ARB began in 1921 as the Department of Public Trustee and Official Administrator. It was corporatised in 1995 and is governed by the Public Trust Corporation Act 1995. ARB states on its website that it is wholly owned by the Government of Malaysia.

Because of that history, many families still associate ARB with estate matters. Its current services include:

• will writing and will custody

• estate administration

• trust administration

• management of pending funds

• other legacy-planning products

ARB offers these services on a fee basis. Check the current charges with ARB directly, as this guide does not set out its fees.

ARB's main roles in estate administration

1. Summary administration of smaller, movable-only estates

According to the Government's official portal, summary administration (pusaka ringkas) applies to estates worth RM600,000 or less that consist of movable property only. Movable property means assets that are not land or buildings, for example:

• money in bank accounts

• shares and unit trusts

• other investments and cash assets

The published process is broadly:

1. Open a file with ARB and submit the required documents.

2. Provide supporting documents such as the death certificate, identity cards of the deceased and heirs, birth and marriage certificates and proof of the assets.

3. ARB investigates the heirs and the assets.

4. ARB issues an authority letter.

5. Where necessary, the matter is filed with the High Court or the Small Estate Distribution Unit (under JKPTG, the Department of Director General of Lands and Mines).

6. The assets are distributed to the entitled heirs.

If the estate includes land or a house, or its value is above RM600,000, summary administration by ARB is not the route. One of the other two routes will apply instead.

2. Executor under a will

A person can appoint ARB as executor in their will, often when they prefer an institution rather than a family member to handle the estate, or when no suitable individual is available. ARB then deals with the estate as executor through the usual legal process for a will.

3. Administrator and trustee

ARB can also act as administrator of an estate and as a trustee holding assets for beneficiaries. This is particularly relevant where some beneficiaries are children. For example, the EPF allows members to nominate ARB, and notes that ARB may act for nominees who are under 18.

4. Will writing and safekeeping

ARB prepares wills and keeps them in safe custody, which reduces the risk of a will being lost or not found after death. Remember that for Muslims, a wasiat (Islamic will) is limited to one-third of the net estate, and a wasiat in favour of an heir takes effect only with the other heirs' consent.

How the ARB route compares with the other estate routes

Malaysia has three main routes for administering an estate. The right one depends on the assets, their value and whether there is a will.

Some practical points:

• ARB does not decide who the heirs are under Islamic law. For Muslim estates, the heirs and their shares are determined under faraid, and the Syariah Court issues the faraid certificate. ARB distributes according to that position.

• For non-Muslims in Peninsular Malaysia, an estate without a will is distributed under the Distribution Act 1958.

• Timing varies. ARB itself says administration can take anything from about three months to several years, depending on the assets and whether there is a dispute.

• Choosing a route is not only about cost. Where the family disagrees, where there are missing heirs, or where assets are in dispute, the route and the steps taken early on can affect how smoothly the matter proceeds.

When might ARB's route be relevant for your family?

ARB may be worth considering where:

• the deceased left only bank accounts, shares, unit trusts or similar assets, with a total value of RM600,000 or less

• the deceased named ARB as executor in a will

• a trustee is needed to hold a child's share until the child is older

• the family would prefer an institution to handle administration of a modest movable-only estate

The ARB route will usually not be the right one where the estate includes land or a house, or where its value is above RM600,000. In those cases, look at small estate distribution or a High Court grant instead.

Before you approach ARB or any other route

Whichever route you use, prepare the basics first:

• official proof of death (an extract of the death register from JPN if the certificate is lost)

• identity documents of the deceased and every heir

• birth and marriage certificates showing each heir's relationship to the deceased

• a list of assets with supporting documents, such as bank statements, share statements and land titles

• details of debts owed by the deceased

• any will, and for Muslims, the faraid certificate once issued

A complete file is the single biggest factor in avoiding delay.

How ASCOLAW can help

If you are not sure whether your family's estate should go to Amanah Raya Berhad, the Land Office or the High Court, ASCOLAW can review the assets and documents and explain which route applies and what it involves. Where a High Court grant or small estate application is needed, we can handle the process for the heirs. Fill in the ASCOLAW enquiry form below and our team will contact you.

Frequently asked questions

Does Amanah Raya automatically handle every estate without a will?

No. ARB is one option. Summary administration by ARB applies to estates of RM600,000 or less consisting only of movable assets. Estates with land up to RM5 million generally go through small estate distribution, and larger estates go to the High Court.

Can Amanah Raya handle an estate that includes a house?

Summary administration by ARB covers movable-only estates. If the estate includes a house or land, the matter will normally go through small estate distribution (for estates up to RM5 million) or the High Court. ARB may still be involved if it has been appointed executor or administrator.

Does Amanah Raya decide the faraid shares?

No. For Muslim estates, the Syariah Court issues the faraid certificate that identifies the heirs and their shares. ARB distributes the estate according to that position.

How long does ARB take to administer an estate?

ARB states that administering an estate can take from about three months to several years, depending on the nature of the assets and whether any dispute arises.

Can I appoint Amanah Raya as the executor of my will?

Yes. ARB offers will-writing and executor services. Ask ARB about its current terms and charges before you decide.

This article is general information, not legal advice. Estate thresholds, procedures and fees can change, so check the current position with Amanah Raya Berhad, JKPTG or the court before acting. Faraid shares depend on the heirs of the particular deceased and the Syariah Court's certification. Estate law and procedure in Sabah and Sarawak differ in some respects from Peninsular Malaysia.

Related guides

• Grant of Probate vs Letter of Administration in Malaysia: Which One Applies?

• Letter of Administration in Malaysia

• Can a Beneficiary Replace the Executor Named in a Will in Malaysia?

• MyLand Malaysia System: Digital Innovation in Land and Estate Management

• ASCOLAW estate distribution service