Small Estates (Distribution) Act 1955 (Act 98)

Small Estates (Distribution) Act 1955 · Act 98
Akta Harta Pusaka Kecil (Pembahagian) 1955
Applies to: Federal (Part II throughout Malaysia; special Parts for Negeri Sembilan/Melaka customary land and for Sabah natives) · Official text ↗

Key points

A 'small estate' is a deceased person's estate worth not more than RM5 million, movable and immovable property together (s 3(2)), the limit since the 2022 amendment took effect on 15 July 2024.
It applies where there is no will; estates with a valid will go to the High Court for probate (s 5).
Cases are heard by an Estate Distribution Officer (Pegawai Pembahagian Pusaka); the old Land Administrator role was replaced by the 2022 amendment.
Debts, funeral costs and any share due to Baitulmal are settled before distribution (s 13(1)).
For Muslims the officer applies faraid; heirs often bring a Syariah court faraid certificate. Difficult points of Islamic law can be referred to the Ruler (s 19).
Appeal to the High Court within 30 days (s 29). Amanah Raya handles movable-only estates up to RM600,000 under its own procedure.

What this law covers

The Small Estates (Distribution) Act 1955 (Act 98) provides a simpler, cheaper way to distribute the estate (harta pusaka) of a person who died without a will (intestate), where the estate is "small". It is a federal civil law used for Muslims and non-Muslims alike. It does not decide who inherits. For Muslims that is decided by Hukum Syarak (faraid); for non-Muslims, by the Distribution Act 1958. The Act provides the machinery to identify the heirs, settle debts and transfer the property.

Definition (s 3(2)): a small estate consists of property in any state not exceeding RM5 million in total value. The value is taken at the date the first petition is filed (s 3(3)). Debts are not deducted, and land registered in the deceased's name counts as part of the estate (s 3(4)).

Amended 2022: the Small Estates (Distribution) (Amendment) Act 2022 (Act A1643) raised the limit from RM2 million to RM5 million, brought movable property fully within the scheme, replaced the Land Administrator with Estate Distribution Officers under a President of Estate Distribution (Part IA, ss 2A–2C), and added summary distribution. It came into force on 15 July 2024. The text summarised here is the reprint as at that date. Distribution work is done by the Estate Distribution Division (Bahagian/Unit Pembahagian Pusaka) of the Department of Director General of Lands and Mines (JKPTG), and applications can be made online through the MyLand portal.

Which route for which estate

Estate	Where to go
No will, total value up to RM5 million (any mix of land, money, shares, vehicles)	Estate Distribution Officer under Act 98 (JKPTG, via MyLand or the district unit)
No will, movable property only, up to RM600,000 (e.g. bank accounts, ASB, EPF, vehicles)	Either summary distribution under Act 98 s 8B, or Amanah Raya Berhad (ARB) "pusaka ringkas" at an ARB branch
No will, above RM5 million	High Court, letters of administration
Valid will (any value)	High Court, probate (s 5); non-Muslims under the Wills Act 1959

If the officer finds the estate is not small, he transfers the petition to the High Court (s 8(7)); the High Court Registrar likewise transfers intestate small estates to the officer (s 7). In Sabah and Sarawak, district land officers (Collectors in Sabah, District Officers in Sarawak) have roles under the Act, and native estates follow special Parts. Check locally there. See also Wills and estates.

The process step by step

Petition (s 8): any heir (beneficiary), creditor, purchaser of the deceased's land, ARB, the state Islamic religious council (Majlis), or a guardian or next friend may lodge a petition in the prescribed form, with documents of title and supporting documents: death certificate, identity cards, land titles, bank, EPF and ASNB statements, and marriage and birth certificates.
Checks and valuation (s 8(3)–(6A)): the officer checks with the High Court that no other petition exists, values the property, and confirms the estate is small.
Notice (s 9): notice of the hearing date is served on the petitioner, who must serve it on every heir and claimant named.
Hearing (s 12): the officer takes evidence on oath, works out debts and funeral expenses, and decides which law applies and who the heirs are and their shares (s 12(4), (7)). An heir who cannot attend may send a letter of consent in the prescribed form (s 12(11)). Minors and persons of unsound mind are represented by a guardian or next friend appointed by the officer (s 10).
Collateral disputes (s 14): disputes about whether property belongs to the estate, debts owed to or by it, or whether a share was assigned are decided first.
Distribution order (s 13): the order provides for estate duty (if any), funeral expenses and debts, fees, and, for a Muslim, any share due to Baitulmal, then distributes the rest. Heirs of full age may agree a different division, which the officer may record unless it is unjust (s 15(1)). The officer may allot land lots to avoid excessive subdivision (s 15(3)–(4)). A minor's share of land is registered in a trustee's name with a caveat (s 13(2)). If needed, letters of administration are granted instead of, or as well as, a distribution order (s 13(4)).
Registration (s 16): after the appeal period, the order is registered at the land office for land. Unclaimed money goes to ARB or the Majlis on trust (s 16(3)–(4)).
Later applications (s 17): to appoint a new trustee or administrator, deal with property found later, or remove a caveat when a minor comes of age.

For movable-only estates up to RM600,000, the officer may make a summary distribution order without a hearing (s 8B). Pending the order, a limited administrator may be appointed to protect the estate (s 8C).

Muslim estates: faraid, the Syariah court and Baitulmal

Faraid: the officer applies Islamic law to the estate of a deceased Muslim (s 12(4), (7)). In practice heirs are often asked to bring a faraid certificate (sijil faraid) from the Syariah court. The Syariah court certifies the heirs and their shares at the request of the officer or a beneficiary (in the Federal Territories, Act 505 s 50; similar provisions apply in each state).
Before faraid: debts (including religious debts such as unpaid zakat or nazr), any valid wasiat up to one-third, completed hibah, and any harta sepencarian claim by the surviving spouse in the Syariah court should be dealt with first. These can change what remains for distribution.
Baitulmal (s 13(1) proviso): where a state law on Baitulmal applies, the officer must ensure any share due to Baitulmal is paid or provided for, for example where there is no residuary heir.
Difficult points (s 19): a difficult question of Islamic law or Malay custom may be referred to the Ruler of the state, or a person or body he directs. The officer must follow the answer, and no appeal lies against an order based on it (s 29(1) proviso).
Agreement (muafakat): Muslim heirs of full age may agree to a different division, for example giving the family home to the widow. The officer records the agreement under s 15(1). This is common practice; for the Islamic-law aspects see Malaysian law vs Sharia.

Amanah Raya's role, appeals and practical tips

Amanah Raya Berhad (ARB) is the "Corporation" in the Act (s 2). It may petition where no one has acted within six months of the death, with a beneficiary's consent (s 18). It may hold money for missing or incapable heirs (s 16(3)–(4)), and it must hand over documents where it has administered movable property (s 8A). Separately, ARB offers summary administration ("pusaka ringkas") of movable-only estates up to RM600,000 at its branches.
Appeal (s 29): any person aggrieved by an officer's order, decision or act may appeal to the High Court within 30 days. The High Court's decision is final. In Terengganu, appeals on certain land interests go to the Land Court.
Tips: apply early, since unregistered land can be lost to later claims and problems pile up. Gather documents before filing. Make sure every heir is named, as omitting one can lead to the order being challenged. Get the faraid certificate early for a Muslim estate. Agree on who will hold land as trustee for minors.

Sharia basis (for information)

Fixed shares: Qur'an 4:11–12 set out the shares of children, parents and spouses "after any bequest made or debt". This is also why debts and valid bequests are settled before division.
Residuaries: the Prophet (peace be upon him) said: "Give the fixed shares to those entitled to them, and what remains goes to the nearest male relative" (Sahih al-Bukhari 6732, Book of the Laws of Inheritance; also Sahih Muslim, Book of the Rules of Inheritance).

The calculation of shares in a particular case is for the Syariah court; this page is general information, not a fatwa.

Laws cited on this page

Act 98	Small Estates (Distribution) Act 1955 · Akta Harta Pesaka Kecil (Pembahagian) 1955	Official text
Act 300	Distribution Act 1958 · Akta Pembahagian 1958	Official text
Act 346	Wills Act 1959 · Akta Wasiat 1959	Official text
Act 505	Administration of Islamic Law (Federal Territories) Act 1993 · Akta Pentadbiran Undang-Undang Islam (Wilayah-Wilayah Persekutuan) 1993	Official text

Listed automatically from the federal Acts named on this page. All laws of Malaysia →

Key sections

Provision	What it says, in plain words
s 2	Definitions: Corporation (Amanah Raya Berhad), Majlis, Estate Distribution Officer, purchaser, patient.
s 2A–2C	President, Deputy Presidents and Estate Distribution Officers (added by Act A1643).
s 3(2)–(4)	Small estate = total value not over RM5 million; valued at first petition; no deduction for debts.
s 4	Exclusive jurisdiction of the officer where the first petition is lodged.
s 5	Estates with a valid will remain with the High Court (probate).
s 8	Who may petition (heir, creditor, purchaser, ARB, Majlis) and the officer's checks.
s 8B	Summary distribution for movable-only estates up to RM600,000.
s 9–10	Notice to heirs; guardians and next friends for minors and incapacitated persons.
s 12	Hearing: evidence on oath; officer decides the applicable law, heirs and shares; letters of consent.
s 13	Distribution order; debts and funeral expenses first; Baitulmal's share; trustees for minors.
s 14	Collateral disputes decided before distribution.
s 15	Heirs' agreement on division; allotting land to avoid fragmentation.
s 18	ARB or the Majlis may petition if no action within 6 months of death.
s 19	Difficult points of Islamic law or Malay custom referred to the Ruler.
s 29	Appeal to the High Court within 30 days; decision final.

Worked examples

Example 1: Muslim father dies leaving a house and savings

Facts. Encik Ahmad dies in Johor without a will, leaving a house worth RM450,000, RM60,000 in savings and EPF. His heirs are his widow, two sons and a daughter.

The law. The estate is under RM5 million and there is no will, so it is a small estate (s 3(2)). An heir petitions the Estate Distribution Officer (s 8). The officer settles debts and funeral expenses (s 13(1)) and applies faraid (s 12(7)), usually with a Syariah court faraid certificate. The widow may first claim harta sepencarian in the Syariah court.

Outcome. Under faraid the widow takes one-eighth and the rest goes to the children, each son taking twice a daughter's share. If all adult heirs agree, the officer can record a different division, for example the house to the widow (s 15(1)).

Example 2: Non-Muslim estate with a will

Facts. Mr Tan dies leaving a valid will and property worth RM900,000.

The law. Because there is a valid will, the High Court has exclusive jurisdiction to grant probate (s 5), even though the value is under RM5 million.

Outcome. The executor applies to the High Court for probate. Act 98 does not apply.

Example 3: Only a bank account and a car

Facts. Puan Lakshmi dies intestate leaving RM35,000 in a bank account and a car worth RM20,000. No land.

The law. A movable-only estate up to RM600,000 can get a summary distribution order without a hearing (s 8B), or be dealt with by Amanah Raya's summary procedure.

Outcome. Her family can choose either route; both are quicker than a full hearing. They should compare fees and waiting times.

Example 4: Unhappy with the officer's decision

Facts. Ravi believes the officer wrongly treated a plot of land as part of his late father's estate, when he had bought it from his father years earlier.

The law. As a purchaser he can raise a claim at the hearing (ss 12(6), 13(5)); disputes on whether property is part of the estate are collateral disputes (s 14). Any person aggrieved can appeal to the High Court within 30 days (s 29).

Outcome. He should bring the sale agreement and payment proof, and file an appeal within 30 days if the decision goes against him.

Examples are simplified illustrations with invented names; real cases turn on their own facts.

Questions & answers

What is the current limit for a small estate?

RM5 million in total value (s 3(2)), counting land and movable property together, without deducting debts. The limit was raised from RM2 million by the 2022 amendment, which came into force on 15 July 2024.

Do Muslims and non-Muslims use the same procedure?

Yes. Act 98 is a federal civil law for everyone. The difference is the law of succession: faraid for Muslims, the Distribution Act 1958 for non-Muslims. The officer decides which applies (s 12(7)).

Do I need a faraid certificate?

For a Muslim estate the officer must determine the heirs and shares under Islamic law, and Syariah courts issue faraid certificates for this (for example Act 505 s 50 in the Federal Territories). Many distribution offices ask for one; check with your local unit.

What if one heir refuses to come or sign?

Notice is served on all heirs (s 9). An heir who cannot attend may send a letter of consent (s 12(11)). If no letter is sent, the officer may still conclude the hearing (s 12(12)) and distribute by law.

Is Amanah Raya the same thing?

No. ARB is a government-owned trust company. Under Act 98 it can petition, hold money for heirs and give documents to the officer (ss 8A, 16, 18). It also runs its own summary process for movable-only estates up to RM600,000.

How long do I have to appeal?

30 days from the officer's order, decision or act, to the High Court (s 29). The High Court's decision is final. There is no appeal from an order based on a ruling on Islamic law or custom referred under s 19.

Is there a deadline to apply?

Act 98 sets no fixed deadline for heirs, but if no proceedings are taken within six months of the death, ARB or the Majlis may report the matter and petition (s 18). Delay causes problems with land and later disputes, so apply early.

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This page explains the general position in Malaysia (last reviewed October 2026). It is not legal advice — check the current law and get advice on your own facts.

Sources

Wills and estates Wills, intestacy and probate (non-Muslim estates)Malaysian law and Sharia compared Muslim family law and Islamic estate planning Administration of Islamic Law (Federal Territories) Act 1993 (Act 505)National Land Code (Revised 2020)