Written by Jocelline Chee from Rightwill | Edited by Miichael Yeoh

When it comes to inheritance, things can get complicated—and emotional—especially when property is involved. In Malaysia, many people assume that putting property under joint names (like with a spouse or child) will make things smoother when someone passes away. Unfortunately, it’s not always that simple.

If you’re planning to leave a property behind for your loved ones, it’s important to understand how inheritance laws work in Malaysia and the potential problems that can pop up with joint ownership.

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🏛️ How Inheritance Works in Malaysia

Inheritance laws in Malaysia depend on your religion:

• For Muslims, faraid (Islamic inheritance law) applies. It has fixed rules on how the estate is divided among family members.
• For non-Muslims, the Distribution Act 1958 (amended in 1997) applies. This Act lays out who gets what—based on whether the deceased leaves behind a spouse, children, or parents.

If someone dies without a will, the law decides how the assets are shared. That’s why it’s so important to have a valid will—it ensures your wishes are followed.

Example under the Distribution Act:

If the deceased leaves behind…	Parent(s) get	Spouse gets	Children get
Parents, spouse & children	1/4	1/4	1/2

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🏠 Joint Name Properties – Not As Simple As You Think

Many Malaysians put properties under joint names thinking it will automatically go to the other person when they pass away. But that’s not always true.

There are two main types of joint ownership in property law:

1. Joint Tenancy
   • Comes with the right of survivorship.
   • If one owner dies, the property automatically goes to the surviving owner.
   • This is common among married couples.
2. Tenancy in Common
   • Each person owns a specific share.
   • When one dies, their share becomes part of their estate and is distributed according to their will or the law.
   • This is more common in Malaysia, even when it’s between family members.

Here’s the catch: Most joint name properties in Malaysia are actually treated as tenancy in common, unless stated otherwise. That means—even if your name is on the title—the other person’s share doesn’t automatically go to you. It becomes part of their estate and is shared out according to their will or inheritance laws.

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⚠️ Common Pitfalls to Watch Out For

1. Unclear Ownership Type
   If it’s not clearly stated whether it’s joint tenancy or tenancy in common, it can lead to confusion—and disputes.
2. Unequal Contributions
   One person may have paid more, but the property is split 50-50 on paper. This often leads to disagreements among family members.
3. Family Conflicts
   Things can get messy with children from previous marriages, siblings, or estranged family members. Without clear planning, emotions can take over.
4. Outdated or No Will
   A will that hasn’t been updated—or worse, no will at all—can cause contradictions and legal battles during probate.

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✅ What You Should Do

To protect your assets and your loved ones from future disputes:

• ✅ Talk to a professional estate planner or lawyer
• ✅ Make sure your will is valid, updated, and matches your current ownership structure
• ✅ Clearly state the type of joint ownership on your property documents
• ✅ Keep your family informed, so there are no surprises later

Joint ownership may seem like the easy way, but without proper planning, it can create unnecessary complications. A little preparation now can give your family peace of mind in the future.