Amanah Raya Berhad has revealed that approximately RM65 billion in inherited assets remain unclaimed in Malaysia due to the absence of estate planning, including the drafting of wills.
According to Group Managing Director Ahmad Feisal, these unclaimed assets consist of RM500 million in cash managed by Amanah Raya Berhad.
On the other hand, RM60 billion worth of immovable property under the jurisdiction of the Land and Mines Department, and RM4.5 billion in “Unclaimed Money” (WTD) managed by the National Accounting Department.
According to New Straits Times, Ahmad Feisal disclosed that only about 1.7 million Malaysians, representing just 5% of the country’s 34 million population, have written wills. This indicates a low level of awareness among the public regarding estate planning.
RM65 billion in frozen assets
He explained that the unclaimed assets have accumulated over the past decade due to various reasons, including missing documentation and the lack of estate planning or trust management by asset owners before their passing.
The failure to plan an estate has led to approximately RM65 billion worth of assets being left idle, causing losses to both individuals and the nation. These assets have been accumulating for at least the past 10 years,” Ahmad Feisal said.
One of the main challenges in transferring these assets to rightful heirs is the lack of essential documents, including death certificates, birth certificates of deceased parents, and land title deeds. Without these, the legal processes for inheritance distribution remain stalled.
Economic impact of unclaimed estates
The situation has economic repercussions as well. Ahmad Feisal emphasized that immovable properties, which form a large part of the unclaimed assets, cannot be developed or utilized due to pending inheritance distribution.
On average, approximately RM6 billion worth of estates need to be processed annually to facilitate the rightful transfer of assets to heirs. However, due to lengthy legal proceedings, a significant portion of these estates remains unclaimed.
Comparing cases with and without estate planning, Ahmad Feisal highlighted that if a deceased individual had planned their estate, the distribution process could be completed within two to three months. However, without a will, the process could take years.
Amanah Raya Berhad, a government-owned trust company, plays a crucial role in estate and trust management, having been appointed under the Public Trust Corporation Act 1995 as an executor and administrator of estates.
