Malaysians may not be aware but here’s how it is done. 

What is a Grant of Probate? 

Before we go further, allow us to explain what a Grant of Probate (GOP) is. A GOP is a legal document you need in order to have the power and authority to administer the dead person’s estate. Estate is a loose term to refer to all the assets and properties under the deceased’s name. 

If the deceased has a valid will, then you will next need to apply for a GOP. The timeframe to apply for a GOP document takes around 4 to 6 weeks. However, that timeframe may take longer depending on how complex the matter is. It is possible for individuals to apply on their own, there will be quite a number of paperwork needed. You may hire an experienced law firm to help reduce the stress for yourself and make the process smoother. 

What if there is no Grant of Probate? 

If there is no Grant of Probate, then you will need a Letters of Administration (LOA). A LOA is issued when the deceased has no will, valid or not, in their name. Their next-of-kin will need to obtain such documents where they can apply for one from the High Court of Malaysia. 

Again, like applying and obtaining a GOP document, the process may take several weeks. Depending on how complex the situation is, the application timeframe may take longer than usual. 

Where does the Malaysian Government come in then? 

This is what the Malaysian government will do for you in such situations. They have implemented laws to ensure the next-of-kin are able to obtain their portion of the assets and properties in fairness and in the smoothest ways possible. 

a.      Distribution Act  (1953) 

In the event that your deceased family member did not leave behind a will, valid one or not, then there is the Distribution Act (1953) for you. The Malaysian government has implemented such law so that just in case you cannot obtain the assets and properties smoothly, you may go to them for help. 

You may refer to the below table for the distribution of the available assets once held by the deceased. 

Please be reminded that the abovementioned table is the distribution detail for West Malaysia and Sarawak. However, if you are from Sabah, you may be subjected to a different set of rules. 

The Distribution Act is not applicable to Muslims. It is only applicable for non-Muslim citizens and residents of Malaysia. Under Islamic Law, the deceased person’s estate will be distributed in accordance with the Holy Al-Quran and hadith. 

b.  Public Trust Corporation Act (1995) and Probate and Administration Act (1959) 

No trustee to help you distribute your assets? That’s not going to be a problem for you. Not every appoints a trustee for their own assets for various reasons. And that is perfectly all right. If you cannot appoint a trustee for reasons that are their own, the Malaysian government has their own trustee and probate divisions. No sweat there! 

A trustee will be appointed for you and your case and they will see through the case for you for the length of the case. If the deceased has left behind a sizeable estate, you may or may not have to pay a processing fee. Refer to the table below to expect roughly how much you will need to pay.

 Table Screenshot via PROPERTY GURU

Bottom Line 

People always thought the government does nothing or little for such matters for their citizens. In all honesty, they do help – just that most people are not aware of it. Just in case your family member passed away and left behind no will, you can always turn to the government for help. If you need further assistance or have any enquiries, feel free to reach out to us for help. We are more than happy to help you in this matter.

It is understandable that people still do not fully understand what NFTs are. As many people doubt NFTs and how it works, most people will just brush it away as a fad. I am not here to push an agenda saying NFTs are all good or all bad. Different people leverage NFTs to their financial advantage. You do not need to be one of them, but there are people who do so. 

If you do not know what NFTs are, it’s an acronym for Nin-Fungible Tokens. Here is Investopedia’s definition of NFTs: 

Non-fungible tokens (NFTs) are cryptographic assets on a blockchain with unique identification codes and metadata that distinguish them from each other. Unlike cryptocurrencies, they cannot be traded or exchanged at equivalency. This differs from fungible tokens like cryptocurrencies, which are identical to each other and, therefore, can serve as a medium for commercial transactions.

–Rakesh Sharma, Non-Fungible Token (NFT) Definition 

Why are NFTs important in our present day? 

It is no secret that ownership of digital ownership has been a thing for a long time around. Ever since the dawn of internet, people own websites, digital works, digital arts, and whatnot. NFTs are no different to that and can help you earn money in the long term. 

The reason why NFT is a hot entity now is because it is on the verge of revolutionizing trade finance and global commerce. When you purchase something online, there has to be a finance organization (or several) that connects and tokenizes merchants and its buyers. Most times these finance organizations tend to be a centralized finance institution (like banks). 

NFTs are a new class of financial assets of its own. It can be considered as a significant overhaul to almost every payment system, financial services, and supply chain around the world. 

The reason why NFTs are important is because it represents digital ownerships. They are built and constructed on smart contracts and blockchain technologies. It is the very same decentralized network that powers many popular cryptocurrencies you see today. 

Blockchains are platforms where they are trustless, secure, and provides completely verifiable data. As NFTs leverages this, it can take any kind of information like an image, a 3D model, documents, etc. It represents a more useful form of digital information. The data coded into an NFT cannot be changed, counterfeited, or accessed by anymore. If someone steals the NFT, its history and destination will still be completely be visible to everyone. 

What it means for you 

It does not matter if you own an NFT as an individual or a business owner. Regardless of where you are coming from, NFTs open up a whole new world of possibilities for handling sensitive and private data. It provides a mechanism for creating cool new products. Each transactions made will be recorded immutably with a minimum of human intervention. 

If you are to go through trade finance institutions, you may find that you face complicated regulatory and supply chain procedures. It involves multiple shifts in parts and needs a great deal of trusts. It is one of the few sectors that are highly susceptible to document fraud, 

By acquiring or producing NFTs, it can remove all these barriers you face with a financial institution. It helps eliminate fraud and reduce your reliance on a middleman by tokenizing assets and documents into a single immutable digital token. 

It’s not to say financial institutions are bad. There are times when you still need to maintain your assets with financial institutions. There will be times when financial institutions can do what NFTs are not able to do, and vice versa. 

How do you incorporate NFTs into your wills then? 

We have touched on this area on a couple of occasions before. The steps to take are pretty straightforward and not as complicated as you think it to be. 

If you have any NFTs, cryptocurrencies, or online assets, you can list them down in your wills. These include your social media accounts too. If you include your cryptocurrencies and NFTs, make sure that you include a step-by-step guide to how to access your accounts. Also good to include in the step-by-step guide is how to cash out the NFTs and cryptocurrencies you have. You may list down what NFTs you own too. 

If it is social media platform, it works a little bit different. You may choose to memorialize your social media accounts and keep it for your family and friends to remember by. Or you may choose to have it closed if you do not wish to keep it around anymore. 

Bottom Line 

If you do own NFTs, feel free to include them in your wills. If you are unsure of how to list them in your wills, feel free to reach out to a lawyer for help. If you need any assistance, talk to us so we may help you with your legal needs. 

As NFT is becoming more and more popular, more Malaysians are investing in NFTs every day. However, NFTs are relatively new in the Malaysian market, therefore not many know about what they can do with it, especially whether it can be inherited. 

If you have NFTs to your name and have earned a sizable income from it, can you put it in your wills? Can it be part of your estate planning? Find out more in this article. 

What is NFT? 

NFT is an acronym for Non-Fungible Tokens. It is a kind of digital asset. They are held in digital wallets like how cryptocurrencies are. Cryptocurrency can be considered as an NFT too. 

NFY can include digital and online assets such as photos, videos, audios, artwork, gaming tokens, or any sort of digital files. So how are these digital assets created? 

NFTs are created on a blockchain, which is a growing list of records. These records are called blocks, which are linked together using cryptography. 

Each block has a cryptographic hash of its previous block, a timestamp, and a transaction data. The timestamps are used to prove that the transaction data exists when the block is published in order to get into its hash. 

NFT does not contain the intellectual property, photo, videos, etc. It’s referred to the intellectual property. The original creator promises that work is either unique or they are only going to create a limited amount of it. 

For example, a creator says they will create only 10 of the artwork. You buy one from this creator and own, let’s say the 7th piece in the 10 piece artwork. Each of these NFTs have its own address. If you have the address and access to it, then you own the NFT. NFTs also contain a smart contract. That means when the artwork is sold, they will get a certain cut of the profit when their NFT has been sold. 

Why do people create, sell, and/or own NFTs then? 

It does get very confusing when it comes to NFT ownership and creation. However, let’s put this in an analogy so everyone can understand it better. 

Take rare collectible cards and autographs for example. Items such as these are rare and close to inaccessible worldwide. Only a few people have them in physical copies. That means these items will fetch a high price if whoever have them want to sell them. 

However, with NFTs being around, it means it can take this concept of uniqueness and apply it to digital works. It gives NFT owners a great way and method to sell and monetise their digital works. 

The scarcity that was created through the NFT makes the digital work even more valuable. It can easily lead to more profits for the people who have created it. It’s the same for people who buy and sell NFTs. 

How do NFTs and estate planning tie in together then? 

Having said all of that above, I think you’d have a clear basic understanding of how NFT works. You may or may not own many valuable NFT assets in your lifetime. If you do, then this is for you and you should start seeing how you can protect it. You can also see how you can leave it behind for your next-of-kin when you are no longer around. 

The first thing you should do is to have your NFTs placed in your wills and trusts. Update them periodically if you have to. In your will, mention how it will be divided up between your beneficiaries. Say how many percent your beneficiaries will get from the proceeds generated from your NFTs. 

When you are done updating your wills and trusts for your NFTs, your next obvious step is to mention how to access your NFTs. You can put in place a list of locations where you have stored your NFTs. Then list the login details and keys to your NFT accounts. 

If it makes anything easier you can also include a step-by-step guide to help your beneficiaries access your NFT accounts. Get a lawyer to help if you need any guidance too, if that makes things easier for you and yourself. 

Key Takeaway 

If you need any assistance in NFTs and will planning, feel free to talk to us. We can help you with estate planning and wills. If you own NFTs and wish to put it in your will, we are here to assist you.

Digital inheritance is perhaps something that’s not really heard of some more than 10 years ago. It’s a term or phrase that most people will not really think much of or care enough to know more about. 

However, in recent years digital inheritance is becoming more and more of a common thing. It isn’t just a popular fad, but it is also legitimately something people should look into. 

If you own digital assets then you should read into this more. It will affect you because you have a share in it. 

What is digital inheritance? 

For anyone and everyone who does not know or has yet to know, this is what digital inheritance means. It means assets you own online, assets that are under your name and all. These assets usually help you make money and generate income if you are successful at it. 

Digital inheritance can be assets such as cryptocurrencies, NFTs, and similar digital items. These digital items will help you generate income if you are good at it. Some people may earn a lot from it, while some others, not so much. 

Who usually owns digital assets in Malaysia? 

Anyone who invests certain amounts of money into digital assets, basically. Most popular digital assets are usually cryptocurrencies and NFTs. Cryptocurrencies may probably be more popular here. 

It should not be a huge surprise because there are quite a number of Malaysians who invest in cryptocurrencies. They may have extra disposable income at hand so that’s why they spend it on investing in cryptocurrencies. 

There are various e-wallets and cryptocurrency websites where Malaysians sign up for an account and start investing there. These e-wallets usually come with a key and/or a passcode for the account holder. 

Can you list digital assets in your wills? 

The short answer is yes, you can do that. Many people don’t actually know this because they think it will not be accepted or recognized. It is recognized and it is accepted. The process of listing your digital assets in your wills is very straightforward and easy too. 

All you need to do is to list all the locations of your digital assets down in your will. Include the keys and passwords in your will. After that, of course, your next step is to divide up how much each of your named beneficiaries will get from your digital inheritance. 

Get a lawyer to help you out with this too. You can actually update your wills periodically where and when you can. When you have acquired new assets or given up some, just update it. Cryptocurrencies and other digital assets are valid assets and do mean something. 

How do you “include” digital assets in your wills? 

Although including digital assets in your wills is easy, there are some other aspects you should consider too. When you have listed your digital assets on your will, you should mention where they are located online? 

Is it a website? Do you have an account there? If you do have an account, how many are there and how do your beneficiaries access it? 

List all of this information down. That’s why many people will advise you to list your login IDs and your passwords or keys. List all of this information down in a document and attach it with your wills. 

When you have listed the login IDs and passwords, come up with an instruction document on how to access it. Do a step-by-step guide if you have to. Also, make sure that it is easy for your beneficiaries to understand and access your accounts. 

Key Takeaway 

Digital inheritance is becoming a more and more common asset that many people own. It isn’t as rare as it was before and many Malaysians actually own some kind of digital inheritance. If you need assistance for your wills and including your digital inheritance, feel free to reach out to us today for help.

What happens to your property after your divorce depends on what you’ve agreed with your ex. We get it – not all marriages last forever. With that being said, it means that most, if not all of your properties will be subject to scrutiny during the divorce period. 

Who gets what after your divorces pretty much depends on what is agreed between you and your spouse before marriage. Are there any agreements signed before the couples got married? Or are there none? 

Prenuptial Agreements 

Is there a prenuptial agreement between you both? A prenuptial agreement is an agreement both couples entered into preferably in a good time before marriage. 

In a prenuptial, it sets out how and what happens to the assets and properties in the event if the couple divorces. It talks about who gets what and how it’s divided. It’s also used to “ringfence” any assets either spouses are bringing into the marriage. 

It may not be as popular as some other countries made it to be, but such agreements existed everywhere else. 

However, in recent years, prenuptial are becoming increasingly common and binding in the event of divorces. It may not be legally binding, but some courts do look into it. Don’t take prenuptial as legally binding. If you do hope it is, seeks out a lawyer for advice first. 

After divorcing, do spouses automatically get ½ of the properties? 

Yes and no. Property may or may not be divided fairly between the 2 divorcees. It can be distributed in a couple of ways. Here is what you should look out for first. 

Categories of properties 

Categories of properties help serve the distribution of properties in the case of a divorce. It can be divided into 3 kinds. 

1. Matrimonial property

Matrimonial property is not defined in the Law Reform Act (Marriage and Divorce) 1976. It’s defined as property that is acquired by joint efforts between both husband and wife to the marriage. In simple language: it’s property bought by the money earned by husband and wife during the course of their marriage. 

The key is in the money (who earns it) and used to buy these properties. In this case, it’s the money earned by both husband and wife and paid for by both parties. Call it a split payment between husband and wife. 

If you divorce and have matrimony properties to your name, then there are a couple of ways you can deal with it. The first way is to sell it off. Whatever money made from the said property will be divided between you and your divorced ex. This is not entirely discretionary, by the way. 

The court will provide 3 considerations before coming to a decision: 

• How much contribution each partner contributes when buying the property
• Any debts accrued by you or your partner that are transferable
• Needs of any minors (below aged 18 years) 

1. Non-matrimonial property

Non-matrimonial property is the kind where it is bought by one partner in the marriage. The property is paid for in its entirety by one spouse. For example, a house that is paid for 100% by the wife or husband. It’s not split between the 2 spouses at all. 

However, according to the same Act, Section 76(4) involves the decision of non-matrimonial properties. So if you have bought a car, for instance, your spouse can acquire it in the event of a divorce case. 

Meaning to say, after you have divorced, you may still have to share some of the properties your ex has never helped in acquiring financially before. Keep in mind that the below rules apply: 

• Needs of minors aged 18 years and below.
• Contributions made by non-acquiring partners towards the family’s welfare. 

Regardless of what has been mentioned, it has to be noteworthy that any division of property must benefit the person who acquires it more. In summary, if you have used your own money to buy the property and your ex looks after the upkeep of it, you will still be able to win the property over. 

1. Properties acquired before marriage

These are properties (and assets) bought and paid for before either of the spouses were married to each other. As straightforward as it means – it is bought entirely from the individual’s own money (contestable). 

How many shares would I get in a divorce? 

This will need to be taken to the court to be decided. There is no way a fixed figure will mean anything here. Do seek a lawyer’s advice before you proceed with any legal measures.