Complete Guide to Faraid in Malaysia: What Heirs Need to Understand

Faraid is the Islamic law of inheritance that decides who inherits from a deceased Muslim and in what shares. Its rules come from the Quran and the Sunnah. In Malaysia, faraid applies to a Muslim's estate after funeral costs, debts, any harta sepencarian (matrimonial property) claim and any valid wasiat (Islamic will) have been dealt with. The Syariah Court certifies who the heirs are and their shares. The estate itself is then transferred through the civil High Court, the Land Administrator (for small estates) or Amanah Raya Berhad, depending on the estate.

This guide explains the principles heirs most need to understand: where the rules come from, what is settled before faraid, how the main shares work, the role of the Syariah Court, and the misconceptions that most often cause trouble.

What faraid is and where it comes from

Faraid (from the Arabic fara'id, meaning fixed or ordained shares) is the system of Islamic inheritance. The shares of the main heirs are set out in the Quran, mainly in Surah An-Nisa' (4:11, 4:12 and 4:176). They were explained further in the Sunnah and by Islamic scholars.

The key verses establish, among other things, that:

• a son's share is twice a daughter's share,

• a daughter on her own takes one-half, and two or more daughters (with no son) share two-thirds,

• each parent takes one-sixth if the deceased left children,

• a husband takes one-half of his wife's estate if she left no children, and one-quarter if she did,

• a wife takes one-quarter of her husband's estate if he left no children, and one-eighth if he did, and

• these shares apply only after any bequest has been carried out and debts have been paid.

A well-known hadith narrated by Bukhari and Muslim instructs that the fixed shares be given to those entitled to them, and that what remains goes to the nearest male relative. Another hadith, narrated by Tirmizi, states that there is no bequest for an heir. This is the basis for the rule that a wasiat generally cannot benefit an heir.

Faraid is treated as a fixed obligation, not a guideline. That is why families cannot simply decide their own shares and call it faraid. They can, however, agree a different arrangement among themselves in a proper way, as explained below.

What is settled before faraid

Faraid does not apply to everything the deceased owned. According to the Selangor Islamic Religious Council (MAIS), the estate is dealt with in this order:

1. funeral expenses,

2. debts, including amounts owed to people and, in Islamic terms, obligations such as unpaid zakat,

3. any harta sepencarian claim by a surviving spouse,

4. any valid wasiat, and

5. distribution of the balance to the heirs by faraid.

The one-third limit on a wasiat

MAIS explains that a wasiat is limited to one-third of the net estate, calculated after funeral costs and debts. It cannot be made in favour of an heir unless the other heirs consent. A wasiat is commonly used to benefit someone outside the faraid heirs, such as an adopted child, a step-child or a charity, or for wakaf and sedekah. The remaining two-thirds or more goes to the heirs by faraid.

Movable and immovable property

Faraid applies to both kinds of property, but they are handled differently in practice.

• Movable property includes cash, bank savings, shares, unit trusts, vehicles, gold and jewellery. These are usually easier to value and release once the right document is obtained.

• Immovable property includes land, houses and commercial buildings. These need a formal transfer at the land office, often a valuation, and more documents. They usually take longer and cost more to deal with.

Some assets sit outside the normal distribution or follow special rules. EPF savings, for example, are paid to the nominee, who, for a Muslim member, acts as a wasi (administrator) and must distribute the money by Islamic law. Takaful and insurance benefits and jointly held assets can also have their own rules. Identify each asset and how it is held before assuming how it will be divided.

How a faraid calculation works

Once the net estate is known, a faraid calculation follows three steps:

1. Identify the heirs. List every surviving relative and check who actually inherits. Some relatives are excluded by closer heirs. For example, the deceased's siblings generally do not inherit if the deceased left a son.

2. Give the fixed-share heirs their shares. Heirs such as the spouse, parents and, in some situations, daughters have fixed fractions.

3. Give the residue to the residuary heirs. What is left goes to the residuary heirs (asabah), such as sons and daughters together in a 2:1 ratio.

Example

For illustration only. A man dies leaving a wife, two sons and one daughter, and a net estate of RM300,000 after funeral costs, debts and any wasiat. Assume he has no surviving parents.

• The wife takes one-eighth, because there are children: RM37,500.

• The balance of RM262,500 goes to the children, with each son taking two parts and the daughter one part (five parts in total).

• Each son receives RM105,000, and the daughter receives RM52,500.

If his parents were still alive, each would take one-sixth and the figures would change. This is why the heirs must be identified carefully before any calculation.

Common fixed shares

This table covers the most common heirs only. Special rules apply in other situations, for example when the fixed shares add up to more or less than the whole estate, or when grandchildren, siblings or more distant relatives inherit. The shares for a particular family are those confirmed in the Syariah Court's faraid certificate.

Why a son's share is twice a daughter's

The 2:1 ratio between sons and daughters is set by the Quran. It is often questioned. Islamic scholars commonly explain it by the different financial duties Islamic law places on men and women. A man is responsible for maintaining (nafkah) his wife and children, and in some cases other female relatives. A woman's inheritance is her own, and she has no duty to spend it on the household.

It is also worth knowing that the 2:1 ratio does not apply to every male and female heir. In some situations, a female heir receives the same as, or more than, a male heir.

The role of the Syariah Court

The Syariah Court's role in an estate is sometimes misunderstood. Broadly, it:

• certifies who the heirs are and their shares, through a faraid certificate (Sijil Faraid) or order,

• decides Islamic law questions related to the estate, such as harta sepencarian claims and the validity of a wasiat or hibah.

The Syariah Court does not itself issue grants of letters of administration or distribution orders for the estate's assets. Those come from:

• the civil High Court (letters of administration or probate, and related orders),

• the Land Administrator's Small Estate Distribution Unit, for estates up to RM5 million, or

• Amanah Raya Berhad, for certain estates with movable assets only.

The authority handling the estate applies the faraid shares when making the distribution or vesting order. Heirs may also agree a different arrangement among themselves (takharuj), provided it is done with full consent and recorded in the formal process.

Common misconceptions

• "The nominee owns it." For a Muslim member's EPF savings, the EPF states that the nominee acts as a wasi who must distribute the savings under Islamic law.

• "The eldest son decides." No heir has authority over the estate until a grant or order is issued. Even then, the administrator acts for all the heirs.

• "A wasiat can give everything to one child." A wasiat is limited to one-third and cannot favour an heir without the other heirs' consent.

• "We can sort it out later." Delay often leads to layered estates, where heirs die before the first estate is settled. The process then becomes longer and more expensive.

• "Faraid only covers land." Faraid applies to the whole net estate, movable and immovable.

Practical steps for heirs

1. Gather documents early: the death certificate, identity documents, marriage and birth certificates, land titles, bank statements, vehicle registration, and details of debts.

2. List every heir and every asset, including those with nominees or joint holders.

3. Identify the debts and prior claims, including any harta sepencarian claim and any wasiat.

4. Talk openly as a family. Share information about assets and avoid hiding anything. This reduces suspicion later.

5. Choose the right route (High Court, small estate or Amanah Raya) based on the estate's value and type of assets, and start without unnecessary delay.

6. Record any agreement among the heirs properly, so it is reflected in the order and cannot be easily disputed later.

Planning ahead

Faraid decides the shares, but a Muslim can still plan within Islamic law. For example, they can make a wasiat of up to one-third for non-heirs or charity, make a hibah (gift) during their lifetime, keep asset records up to date, and check that nominations are current. Good planning does not change faraid. It makes the process easier for the family and reduces the scope for dispute.

How ASCOLAW can help

ASCOLAW can explain the administration route that applies to your family's estate, prepare the documents and applications, and help with issues such as debts, nominated assets and agreements among heirs. Fill in the ASCOLAW enquiry form below and our team will contact you.

Frequently asked questions

Does faraid apply to non-Muslims?

No. Faraid applies to the estates of Muslims. A non-Muslim's estate is distributed under their will, or under the intestacy law that applies to them if there is no will.

Where do I get a faraid certificate?

From the Syariah Court in the relevant state. The certificate or order records the heirs and their shares based on the documents filed for that family.

Can the heirs agree a different split from faraid?

Yes, heirs may agree among themselves (takharuj), for example one heir taking a house and compensating the others. It must be done with each heir's full knowledge and consent and recorded in the formal process.

Is a wasiat still useful if faraid already fixes the shares?

Yes. A wasiat of up to one-third can benefit people or causes outside the faraid heirs. It can also help the family understand the deceased's wishes.

Are debts paid before faraid?

Yes. Funeral expenses and debts come first, followed by any harta sepencarian claim and any valid wasiat, before the balance is distributed by faraid.

This article is general information, not legal advice or a religious ruling. Faraid shares depend on the heirs of the particular deceased and are determined by the Syariah Court's faraid certificate or order for that family. Estate procedures and limits can change and may differ in Sabah and Sarawak.

Related guides

• Letter of Administration in Malaysia

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

• Vesting Order In Malaysia

• Simple Guide to Changing the Name on a Land and House Title After a Death

• ASCOLAW estate distribution service