Disclaimer: This article provides knowledge to readers which does not provide any advices to readers. The writer and the company of this article take no legal responsibilities for any usage of these methods. The readers should consult their financial adviser first before implementing any financial decisions.

To define estate management, it refers to distributing assets of a person to another person, regardless of the living status of the person. Estate management is the secondary topic that should be discussed, but often omitted.

To prove this, the data from the Malaysian government says it all. As of January 2025, the unclaimed money in the Accountant General's Department of Malaysia (JANM, Jabatan Akauntan Negara Malaysia) had recorded RM12.6 billion, up from only RM7 billion as of October 2019; which is about doubled its amount. (The Star, 2025) This is just a tip of an iceberg when there is an estimated RM65 billion in assets unclaimed, reported by Amanah Raya. (Malay Mail, 2025)

There are multiple reasons of funds being classified as unclaimed money, but after an analysis of the source of funds and assets, there are one-third of the funds belonged to the deceased individuals. The factors that contribute to doubling its amount are low societal awareness, complicated document and legal processing during estate distribution and lack of cooperation among heirs. (Malay Mail, 2025)

Distributions of assets are efficient with these legal documents available, but with the pre-requisite of the owner of the assets is mindful of these documents.

1. Will / Wasiat / Hibah

It is a simple document which provides instruction about how the testator's (the person who dies with a will) assets should be distributed.

Pros

• Low setup fee: Pay a small amount to set up a will or wasiat ensures that the estate (assets owned by a deceased) does not distribute through the Distribution Act 1959 / Intestate Succession Ordinance 1960 (for Sabahans) / Faraid distribution (for Muslims) / Tribe distribution (for natives).

• Ease of management: The testator can change their will / wasiat any time during their lifetime.

• Simple and direct: The testator can direct a specific type of assets to someone or some group of people, which can be even a person who is not related to the testator.

Cons

• Lengthy court order: Even if it not as lengthy as an intestate (the person who dies without a will), the shortest period of obtaining the Grant of Probate (a document issued by the High Court to allow the distribution of asset) is at least 6 months. This can be part of a reason why qualified heirs do not bother to proceed to claim the assets.

• Events which cause invalidity of the will: Will can be invalid when anything below happens. The testator becomes intestate once these events happen. 

• • Marriage (or even remarriage)

  • Convert to Islam

  • A new will is written

  • Destroy of will in a purpose manner (some of the cases are unintentional)

  • All the beneficiaries (the people who are receiving the assets in the will) die

• Can be challenged: Validity of will or wasiat can be challenged in the High Court. The stronger the challenge, the longer the legal process; hence, the higher the legal fees contributed by the estate. Not to mention the legal fees incurred for this challenge.

• Flow of distribution: Government tax should be paid first. Before the estate is distributed among beneficiaries, creditors with or without valid proves can claim the estate. Hence, the beneficiaries receive less estate, even if it is not intended. (For example, initially will offers a house but only cash after distribution)

• Executors' credibility: As the person who represents the testator to unfreeze the assets of the testator, the executors can default in responsibilities which can affect beneficiaries of the will or wasiat.

2. Trust

It is a document which provides instruction about how the settlor's (the person who contributes the assets to the trust document) assets should benefit the beneficiary and finally, distribute the assets. Besides settlor(s) and beneficiary(s), there is / are trust handler(s) which is / are called trustee(s).

Pros

• No legal proceedings (except testamentary trust): There is no need to go to the High Court just to wait for the Grant of Probate.

• No invalidity even when challenged (except revocable trust in certain circumstances): If the settlor has multiple families, other families have no rights as long as the settlor rules them out in the trust. The settlor can also revoke the trust when the settlor is still sound and alive.

• The completeness of assets are preserved: The assets will be government proof and creditor proof as long as Trust Act 1949 is observed.

• Valid even if the settlor is still alive: While will or wasiat can only be activated after the death of the testator, the settlor can activate the trust any time during or after their life.

Cons

• No control of assets by the settlor: The settlor can no longer sell the assets which had been transferred into a trust. The settlor can write a wish list to the trustee but the decision lies on the trustee and their responsibility to protect beneficiaries' right.

• High setup and maintenance cost: Comparing the setup fee only in will or wasiat, trustees fee should be paid when the trust is active. This can erode the assets in the trust, especially when the assets under trust is not income-generating assets.

• Trust is case-sensitive: As trust can exist for as long as 80 years, words in the trust deeds should be defined properly. Besides the prohibition of the use of word "wish", any people involved as beneficiaries should exist at the time of trust to prevent from holding trust assets forever by the trustees.

• Only outright-owned assets are allowed to be in the trust: Not all assets can be placed in the trust. To be specific, only assets which the settlor has outright ownership (means the legal owner AND the beneficial owner) AND has settled its debt can be in the trust. Else, the assets cannot be transferred into the trust.

3. Family Office

It is a legal entity which the settlor can provide the assets with the power to manage it. The settlor can also manage how the assets should be used without wishes from any parties. This form of office targets high-net-worth or ultra-high-net-worth family during setups, compared to a usual organisation setup.

Pros

• Family constitutions: Similar to tribe rules, family constitutions have legal power in governing its family office. This means even if the founder cannot make any decision, the family constitution and family board are still there to support the family office.

• Company-grade management: Similar to some listed companies, family office is differentiated among members, such as family board (like a company's board of directors) and family office staff (similar to that of company management).

• Full control on the assets (including business) in the family office: Even with the existence of auditors in the family office, the family board can still make decisions in favour of the family's welfare. It also protects assets from being targeted by governments and creditors when any one of the family board member dies.

Cons

• Huge setup costs: As family office either outsource or employ experts, the cost of setting up the family office is far beyond from setting up trusts.

• Stiff relationship among family members: Even though family constitutions are there to rule the family board, it does not guarantee the peace of the family members, especially when the family board makes an unfair decision to their family office which can affect the welfare of other family members.

• Family members are restricted by rules: Family constitutions are rules in the family. There will be "constitution police" - the management. The family members can be penalised should they fail to uphold the family constitutions.

In A Nutshell - No Method Is Useless, Look For The Best Method Based On Your Needs

Besides the value of assets, your ability to control your assets is also vital before selecting any estate management methods.

Of course, the estate management techniques can be combined to cater different needs.

• If the settlor has multiple families: Use a will for the legal family, a trust for the unregistered family

• If the settlor has an ambitious special-needs child: Use a family office to manage family members with a trust in the family office for the special-needs child

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