The Importance of Wills and Estate Planning When Moving to Malaysia

Relocating to a new country comes with a list of essential tasks, and one that should not be overlooked is revisiting your will and estate planning. For expats moving to Malaysia, understanding the local legal requirements surrounding wills and inheritance is crucial. Even if you have an existing will from your home country, it may not cover you adequately under Malaysian jurisdiction. Taking the time to sit down with a professional to assess your situation can help you ensure your loved ones are protected and your assets are distributed according to your wishes.

Why You Need a New Will in Malaysia
One of the key reasons to review your will when moving to Malaysia is that legal systems and inheritance laws differ from country to country. Your current will might not be recognized by Malaysian courts, or it might not cover all your assets here. This can cause unnecessary complications for your family if the will needs to be probated in multiple jurisdictions.
In Malaysia, specific rules apply regarding property, inheritance tax, and even who can execute your will. A professional familiar with Malaysian law can help you create a will that ensures your assets here are handled efficiently and your wishes are carried out. Without this, your estate may go through lengthy legal processes, leaving your family with additional stress during a difficult time.

EPF Accounts: Why You Need a Malaysian Will
For expats working in Malaysia, the Employees Provident Fund (EPF) is a key part of retirement planning. However, unlike some other retirement savings accounts, you cannot simply add a beneficiary to your EPF account. This makes it even more important to have a Malaysian will in place to specify how your EPF savings will be distributed. Without a will, your EPF savings may be distributed according to local laws of inheritance, which might not align with your personal wishes.

By creating a will that includes provisions for your EPF account, you ensure that these funds are directed to the right people, sparing your loved ones from unnecessary legal hurdles. This simple step can give you peace of mind and streamline the process for your family in the future.

Key Considerations When Creating a Will in Malaysia
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When working on your will, there are a few key aspects to keep in mind:
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Assets Held in Multiple Countries:
If you have properties or investments in both Malaysia and your home country, you may need to create separate wills or carefully structure your estate plan to ensure clarity in both jurisdictions.

Executors and Trustees:
‍You’ll need to appoint a reliable executor who understands Malaysian law. It’s also important to understand the roles and responsibilities of trustees, especially if you have children or dependents.

Legal Guardianship:
If you have children, ensuring their legal guardianship is addressed in your will is vital, particularly if you are living abroad from your wider family network.

Sharia Law: If you have Muslim beneficiaries, Malaysia’s Islamic law (Sharia) may apply to certain aspects of inheritance, depending on the circumstances. It’s crucial to understand how this might affect your estate plan.

Work with a Professional
Navigating wills and estate planning in a foreign country can be complex. That’s why it’s recommended to work with a lawyer or financial planner who specializes in expat estate planning in Malaysia. They will help ensure your estate plan complies with local laws while safeguarding your assets and providing for your family’s future.

At Relocating to Malaysia, we connect expats with professionals who can help you navigate the legal and financial aspects of settling in Malaysia, including crafting a will that fits your unique situation.

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