Property Inheritance & Faraid
in Malaysia: Muslim Estate Guide (2026)

General guidance for 2026 — not legal advice. Rules vary by state and may change; confirm with a licensed Malaysian solicitor or the relevant authority. Just acquired a property? Ask us about renovating →

Overview: faraid, harta pusaka and Islamic inheritance in Malaysia

In Malaysia, the inheritance of property by Muslims is governed by Islamic law (faraid), which prescribes mandatory fixed shares for specific classes of heirs based on the Quran, the Hadith, and centuries of Islamic jurisprudence. Faraid applies to all Muslims in Malaysia — it cannot be contracted out of by will for the two-thirds of the estate that must follow faraid rules.

The term harta pusaka (literally “inheritance property”) refers to the deceased’s estate, including:

• Immovable property — land, houses, apartments, commercial premises.
• Movable property — cash, bank balances, EPF (if not nominated), shares, vehicles.

Note: EPF and insurance proceeds with a valid nomination pass directly to the nominee outside the estate — they are not subject to faraid. Similarly, assets held in trust (such as hibah or inter-vivos gift) before death do not form part of the estate.

Who administers a Muslim estate in Malaysia?

Three bodies handle Muslim estate administration, depending on the nature and value of the assets:

• JKPTG (Jabatan Ketua Pengarah Tanah dan Galian / Department of Director General of Lands and Mines) — handles small estates that contain immovable property and have a total value of not more than RM2 million.
• Amanah Raya Berhad (ARB) — handles estates consisting of movable property only (no land/property) with a total value of not more than RM600,000.
• High Court — handles all estates above the JKPTG threshold (total value above RM2 million or complex estates) via a grant of letters of administration (if no will) or grant of probate (if there is a valid wasiat). A licensed lawyer is required for High Court proceedings.

Estate administration routes compared

The Syariah Court issues a sijil faraid (faraid certificate) confirming the legal heirs and their respective shares. This document is essential for JKPTG and High Court proceedings — it provides the official statement of who inherits what under faraid rules.

Faraid: how the fixed shares work

Faraid law divides heirs into two categories:

• Ashabul Furudh (fixed-share heirs) — those with a specific Quranic entitlement (e.g., spouse, daughters, mothers, grandmothers). Their shares are expressed as fractions (1/2, 1/4, 1/8, 2/3, 1/3, 1/6).
• Asabah (residual heirs) — those who receive the remainder after the fixed shares are distributed (typically sons, fathers, brothers). If there are only residual heirs, they divide the estate equally among themselves.

Faraid calculations become complex when multiple heir categories co-exist. A Syariah Court-issued sijil faraid provides the authoritative calculation; many states also have free faraid calculators on their Syariah Court or Jabatan Agama Islam websites.

The hierarchy and blocking of heirs

Faraid law operates on a system of hijab (blocking): certain heirs block others from inheriting entirely. Key examples:

• A son blocks the deceased’s brothers from inheriting.
• A father blocks the deceased’s grandfather and uncles.
• A full brother blocks half-brothers (from the father’s side).
• Non-Muslims do not inherit under faraid (and vice versa). A non-Muslim child cannot inherit from a Muslim parent under faraid; a Muslim child cannot inherit from a non-Muslim parent under the Distribution Act 1958.

This blocking system means the final list of heirs entitled to share the estate can differ significantly from what a layperson might expect. Always obtain a sijil faraid from the Syariah Court to confirm the entitlements rather than relying on informal estimates.

Wasiat: the Islamic will and its limits

A Muslim in Malaysia may make a wasiat (Islamic will) but it is subject to strict limits:

• A wasiat may only dispose of up to one-third (1/3) of the estate. The remaining two-thirds must follow faraid.
• A wasiat cannot benefit a waris (statutory heir under faraid) — it can only be directed to non-heirs (e.g., a charity, a non-Muslim spouse, a grandchild if the parent is still alive and would otherwise block them).
• A wasiat that attempts to give more than 1/3 of the estate, or that benefits a waris, is only valid with the unanimous consent of all heirs after the testator’s death.

The wasiat is registered with the Syariah Court and administered alongside the faraid distribution. Hibah (inter-vivos gift of property during the donor’s lifetime) is an alternative planning tool — property given via hibah passes to the recipient before death and falls outside the estate, subject to valid hibah conditions being met (including the donor losing effective control during their lifetime).

Small estate distribution via JKPTG

For Muslim estates with immovable property (land/buildings) valued at not more than RM2 million, heirs apply to the Land Administrator (Pentadbir Tanah) at JKPTG under the Small Estates (Distribution) Act 1955. The process:

1. Obtain the sijil faraid from the state Syariah Court or Jabatan Agama Islam. This confirms the legal heirs and their shares.
2. Apply online via the MyLand portal (mylands.gov.my) or at the Land Office. Submit: death certificate, identity cards of all heirs, title documents, and the sijil faraid.
3. Attend the small estate hearing before the Land Administrator. All heirs (or their representatives) must appear or submit consent letters. The administrator confirms the distribution method (faraid for Muslims).
4. The Land Administrator issues a Distribution Order specifying each heir’s share.
5. The Distribution Order is presented at the land office to effect the transfer of each heir’s share onto the title. Each heir becomes a co-proprietor in their faraid fraction on the land title.

Processing typically takes 3–12 months depending on the Land Office, number of heirs, and whether all heirs are traceable and cooperative. Contested estates (where heirs dispute the shares or one heir is uncontactable) take significantly longer.

Amanah Raya Berhad (ARB) for movable estates

Where the deceased’s estate consists only of movable assets (bank savings, shares, unit trusts, vehicles — no land or property) with a total value not exceeding RM600,000, heirs may apply to Amanah Raya Berhad (a government-linked trust company) to act as administrator. ARB processes the claim, distributes according to faraid, and issues payments to each entitled heir. This is faster than High Court proceedings for smaller movable estates.

ARB’s main office is in Kuala Lumpur, with branch offices in all states. Their website (www.arb.com.my) provides the application kit and fee schedule.

High Court letters of administration for large or complex estates

Where the estate exceeds RM2 million (total value), or is complex (mixed assets, businesses, properties in multiple states), or where there is a dispute among heirs, the estate must be administered through the High Court:

• A licensed solicitor applies for Letters of Administration (if no valid wasiat) or Grant of Probate (if a wasiat exists) in the High Court of the relevant state.
• The appointed administrator (or executor under a wasiat) has legal authority to collect assets, pay debts, and distribute the net estate according to faraid (and the wasiat if applicable).
• High Court probate proceedings typically take 1–3 years (or longer for disputed estates). Legal fees can be substantial.
• The sijil faraid remains essential even in the High Court route; the court relies on it to determine the distribution.

Transferring property to heirs after faraid distribution

Once the Distribution Order (JKPTG) or court order (High Court) is obtained, the physical transfer of the property title to each heir involves:

• Presenting the Distribution Order or court order at the land office for endorsement on the land title — each heir’s name and fractional share is registered.
• If heirs decide to consolidate ownership (e.g., one heir buys out the others), a subsequent transfer between co-heirs is executed via MOT. Stamp duty at ad valorem rates applies to the consideration paid, though love-and-affection remissions may apply for qualifying family relationships.
• If the property is to be sold (rather than held by the heirs), all registered co-proprietors must jointly sign the SPA and MOT. RPGT applies to each co-heir on their proportional gain.

See transferring property to family → and joint property ownership → for related guidance on post-distribution title arrangements.

Estate planning for Muslims in Malaysia

The constraints of faraid — fixed shares, no freedom to exclude heirs, the blocking system — make proactive estate planning especially important for Malaysian Muslims who own property. Common strategies include:

• Hibah (gift during lifetime) — transfer property to intended recipients before death. Effective hibah removes the asset from the estate. Requires genuinely giving up control; poorly structured hibah can be challenged by other heirs.
• Wasiat (Islamic will) for the one-third — direct specific assets (up to 1/3 of estate value) to non-heirs or charitable causes.
• EPF nomination — EPF savings pass to the nominated beneficiary outside the estate (though EPF nominee rules have their own framework; the nominee is not automatically the beneficial owner).
• Takaful (Islamic insurance) with a hibah nomination — proceeds pass to the named beneficiary on death, outside the estate.
• Islamic trust (amanah) — assets placed in a registered trust managed by ARB or a licensed trustee company can distribute to beneficiaries outside the faraid framework.

Consult a qualified Syariah lawyer and an estate planning professional to structure assets appropriately. ClickBina focuses on renovation — once the property has been transferred to heirs, we can quote for bringing it up to standard.

Sources & official references

• Small Estates (Distribution) Act 1955 (Act 98) — JKPTG estate distribution proceedings — jkptg.gov.my
• MyLand Portal — online small estate application — mylands.gov.my
• Amanah Raya Berhad (ARB) — movable estate administration — arb.com.my
• Jabatan Kehakiman Syariah Malaysia (JKSM) — Syariah courts and faraid certificates — jksm.gov.my
• malaysia.gov.my — Division of Inheritance / Faraid Distribution — malaysia.gov.my
• Pewarisan.my — Understanding Inheritance (Harta Pusaka) and Faraid Law in Malaysia — pewarisan.my