Faraid and Wasiat in Malaysia: Key Differences and Why Both Matter in Estate Planning

Faraid and wasiat do different jobs in a Muslim's estate. Faraid is the Islamic law of inheritance that fixes which heirs receive a share and how much. Wasiat is a Muslim's own instruction, made during their lifetime, for up to one-third of the net estate to go to people who are not heirs or to charitable causes. When a Muslim dies, the estate is settled in a set order: funeral expenses and debts first, then the wasiat (within the one-third limit), and then the balance is divided by faraid.

Understanding how the two fit together helps you plan properly and avoid assumptions that can cause disputes later.

What is faraid?

Faraid is the system for distributing a Muslim's estate under Syariah law. It is based on the Quran and the Hadith, and it sets out the entitled heirs and the proportion each of them receives.

Key points about faraid:

• It is obligatory. Faraid applies to a Muslim's estate whether or not the deceased made any plans.

• The heirs are defined. The closest heirs, such as the husband or wife, children and parents, usually receive a share. In certain situations, other relatives are also entitled.

• The shares are fixed. For example, where sons and daughters inherit together, a son receives twice the share of a daughter.

• Shares depend on the family. Who inherits and how much depends on which relatives survive the deceased. In practice, the shares for an actual family are confirmed through a faraid certificate from the Syariah Court or by the authority handling the estate.

What is wasiat?

A wasiat is a declaration made during a person's lifetime about how part of their property or benefits should be dealt with after death, for purposes permitted by Syariah.

Key points about wasiat:

• It is optional. Each person decides whether to make one.

• It is limited to one-third. A wasiat should not exceed one-third of the net estate. The one-third is calculated after funeral expenses and the deceased's debts have been paid.

• It is generally for non-heirs. A wasiat is usually made in favour of people who do not inherit under faraid, such as an adopted child, a close friend, a relative who is not an heir, or a charitable cause.

• Consent is needed for heirs or amounts above one-third. A wasiat in favour of an heir, or one that goes beyond one-third, generally takes effect only if the other heirs consent.

• It is governed by state law. Muslim wills are regulated by state legislation. Selangor, for example, has the Muslim Wills Enactment (Selangor) 1999 (Enakmen Wasiat Orang Islam (Negeri Selangor) 1999). The details can differ between states.

Faraid vs wasiat: the key differences

The order in which a Muslim's estate is settled

This is where many people get confused. Faraid does not come first. The estate is dealt with in this order:

1. Funeral expenses and debts. These are paid from the estate first.

2. Wasiat. Any valid wasiat is carried out, within the limit of one-third of the net estate.

3. Faraid. The remaining balance is divided among the heirs according to faraid.

A valid wasiat is therefore carried out from a limited portion of the estate, and faraid is then applied to everything that remains.

Why faraid matters in estate planning

Faraid gives every entitled heir a clear share defined by Syariah law. This protects heirs who might otherwise be left out, such as daughters or elderly parents.

It also reflects the structure of family responsibilities in Islam, where male family members carry greater financial responsibility for supporting the family.

Because faraid applies automatically, some people assume there is nothing to plan. In reality, faraid only decides the shares. It does not deal with non-heirs, charitable wishes or practical instructions, and it does not by itself give anyone the authority to deal with the estate after death.

Why wasiat matters in estate planning

A wasiat gives you some flexibility within Syariah limits. It is especially useful if you want to:

• Provide for someone who does not inherit under faraid, such as an adopted child, a stepchild or a close friend

• Give to a charitable cause

• Appoint a trusted person as executor (wasi) to carry out your wasiat

• Record clear instructions for your family, reducing confusion and potential disputes

A clear wasiat helps your family understand your intentions and can make the administration of your estate smoother.

Common misunderstandings about faraid and wasiat

• "A wasiat can replace faraid." It cannot. A wasiat covers only up to one-third of the net estate, and faraid governs the rest.

• "I can leave everything to one child through a wasiat." A wasiat in favour of an heir generally needs the consent of the other heirs, and the one-third limit still applies.

• "Faraid means I do not need to plan." Faraid decides the shares, but it does not provide for non-heirs, charitable wishes or practical instructions.

• "Faraid is applied before debts are paid." Debts and funeral expenses are settled first, then the wasiat, then faraid.

After death: faraid still needs legal authority

Knowing the faraid shares is not enough to transfer the deceased's property. Someone must first obtain legal authority to deal with the estate, whether through the small estate process (including online through MyLAND) or a Letter of Administration from the High Court, depending on the estate. Our guides on Letter of Administration in Malaysia and the MyLand Malaysia System explain these routes.

How ASCOLAW can help

ASCOLAW (Messrs Akmal Saufi & Co) assists Muslim clients with estate planning, including explaining how faraid and wasiat will apply to their assets and preparing a wasiat that stays within the legal limits. We also help families with the steps needed after death to administer and distribute an estate.

Fill in the ASCOLAW enquiry form below with a short description of what you want to plan for, and our team will get back to you.

Frequently asked questions

Does faraid still apply if a Muslim leaves a wasiat?

Yes. After funeral expenses and debts are paid and the wasiat is carried out (within one-third of the net estate), the balance is divided according to faraid.

How much of my estate can I give through a wasiat?

Up to one-third of your net estate, calculated after funeral expenses and debts. A larger amount generally takes effect only if the heirs consent.

Can I make a wasiat in favour of one of my heirs?

A wasiat in favour of an heir generally takes effect only if the other heirs consent. This is why a wasiat is usually made for people who do not inherit under faraid, or for charitable causes.

Who decides the faraid shares for my family?

The shares depend on which relatives survive the deceased. They are usually confirmed through a faraid certificate from the Syariah Court or by the authority handling the estate. Families should not rely on general examples.

Is making a wasiat compulsory?

No. Faraid is obligatory, but making a wasiat is a personal choice.

This article provides general information about faraid and wasiat in Malaysia and is not legal or religious advice for your specific situation. Muslim wills and estates are governed by state law, which may differ between states. The heirs, shares and any ruling on a particular wasiat depend on the Syariah Court or the relevant authority for the actual family.

Related guides

• Letter of Administration in Malaysia

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

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

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