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The DISTRIBUTION ACT 1958(As Amended in 1997) is applicable to all Malaysian and Foreigners with Malaysian domicile who die intestate in Malaysia. The Act apply to foreigners whether they are working here as an expatriate or living in Malaysia on the MM2H programme(My Malaysia Second Home Programme).
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A foreigner with Malaysian domicile who owns movable and immovable assets in Malaysia who dies intestate, The
Distribution Act 1958(As Amended in 1997) and Probate
& Administration Act 1959 shall apply.
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Distribution Act 1958 (Extracts)
Section 4 of the Distribution Act 1958 states the following:
1. The distribution of the movable property of a person deceased shall be regulated by the law of the country in which he was domiciled at the time of his death.
For example if it was found a person is a Malaysian domicile and he dies intestate, the law which is applicable for distributing his movables will be the Distribution Act.
2. The distribution of immovable property of a person deceased intestate shall be regulated by this act wherever he may be domiciled at the time of his death.
For example, a person with an Australian domiciles dies intestate leaving a piece of land in Malaysia, that piece of land will be distributed in accordance with the Distribution Act.
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The Distribution Act 1958 (As Amended in 1997)
 
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Definition Section 2 – Interpretation
1. a person found under section 10 of the Mental Disorder Ordinance, in Sarawak, section 5 of the Mental Disorder Ordinance, to be unsound mind and incapable of managing
himself and his affairs.
2. a person certified insane by a medical practitioner under section 4 of the Lunatics Ordinance.
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Grant of Representation Section 3 - Grant of Probate to Executor
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Probate maybe granted to an Executor appointed in a will.
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Appointment can be express (ie stated clearly in a will) or implied (as in chain of executorship)
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Subject to section 4, where several executors are appointed, probate maybe granted to all simultaneously or at different times.
Section 4 - Restriction on grant
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Representation shall not be granted to more than four person in regards to same property. ie, maximum 4 joint executors.
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If beneficiary is an infant, under Will or intestacy shall be granted to either trust corporation (with/without an individual) or to not less than 2 individuals.
ie, Any minor beneficiary below 18, need for at least 2 PRs / a trust corporation.
Express Renunciation Section 8
Or
in writing signed by person renouncing and attested by an advocate or before whom an affidavit may be sworn.
On Failure of Executors Section 16
Where
1. no executor is appointed by a will
2. the executor /all executors appointed by will are legally incapable of acting or have renounced
3. no executor survives
4. all executors die before probate or before finishing administering
5. executors appointed do not appear.
Letter of Administration with will annexed may be granted to person(s) Court deem fit.
Priority goes to :
1. a universal or residuary legatee
2. a personal rep of a deceased universal/residuary legatee
3. beneficiaries under the Will
4. a legatee having a beneficial interest
5. a creditor.
Administration Bond Section 35
1. a. In the case of administration, with or without annexed, person whom grant is made shall give security for the due administration of the estate.
b. No security required where gross estate value does not exceed 50 thousand.
2. Security by bond in prescribed form by guarantor and 2 sureties, in gross estate value, but court may for sufficient reason increase/decrease the number of sureties or dispense with them and may reduce the amount of the bond.
Situation where no administration bond required Section 35
3. Trust corporation need not give security.
4. Administrator is the sole beneficiary after payments of debts, sureties may be dispensed with.
5. Sureties may be required by the Registrar to justify.
Executor’s or Administrator’s Commission Section 43
1. The Court may with discretion allow executors or administrators a commission not exceeding 5% on the
value of the assets collected by them.
Administration of assets Section 69
1. Where the estate of a deceased person is insolvent his estate shall be administered in accordance with
the rule set out in part 1of the First Schedule.
First Schedule
Part 1
1. The funeral, testamentary and administration expenses have priority.
Part 2 - Order Of Payment
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Property undisposed off by Will ie Property intestacy
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Property included in a residuary gift ie residuary estate
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Payments from identified source intended by the testator to pay the debt/liabilities
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Pecuniary legacy fund
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All Property specifically devised or bequeathed abate ratably/proportionately to satisfy payment.
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