In a significant legislative update that took place from January 1, 2024, the Malaysian government introduced a nominal RM10 fixed duty on the instrument of transfer of any property by way of release or renunciation by a beneficiary of a deceased estate to another beneficiary entitled under the same estate. According to Malaysian Institute of Estate Planners, the change heralds a new chapter in estate planning and administration, promising to simplify the process and make it more economical for Malaysians navigating the complex waters of estate distribution.
Understanding the Change
Traditionally, the transfer of property rights within the context of a deceased estate could be subject to varying stamp duties, depending on the nature and value of the property being transferred. The introduction of a RM10 fixed duty is a targeted measure aimed at reducing the financial burden on beneficiaries, facilitating a smoother transition of assets within families and ensuring that the wishes of the deceased are fulfilled without undue financial strain.
The Impact on Estate Planning
This legislative update MIEP said is not merely an administrative change; it reflects a deeper understanding of the intricacies involved in estate planning and the challenges faced by beneficiaries. By significantly reducing the cost associated with the transfer of property between beneficiaries of the same estate, the government is removing one of the potential hurdles families face during an already difficult time.
For estate planners and professionals this update is a welcome development adds MIEP, what it does it streamlines the process of advising clients on estate distribution strategies, allowing for a more straightforward implementation of the deceased’s wishes. Moreover, it said the update emphasises the importance of proper estate planning and the role it plays in avoiding unnecessary complications and expenses.
Beyond the immediate financial savings, the RM10 fixed duty represents a step towards more compassionate governance, acknowledging the emotional and financial stress that can accompany the loss of a loved one. By making it easier and more affordable for beneficiaries to transfer property amongst themselves, the government is facilitating a smoother grieving
process, free from the added worry of hefty stamp duties. Furthermore, this change highlights the importance of understanding and utilizing estate planning tools. With the right planning, individuals can ensure that their estate is managed and distributed according to their wishes in a manner that is both efficient and cost-effective.
Looking Ahead
Since the policy has been in effect since the beginning of 2024, MIEP said estate planning professionals, legal practitioners, and the public alike should familiarise themselves with the details of this update. In conclusion, the introduction of a RM10 fixed duty for the transfer of property between beneficiaries of the same deceased estate marks a significant advancement in estate administration in Malaysia. It is a testament to the government’s commitment to reducing the financial burden on citizens during what is often a challenging time, and it reinforces the value of thoughtful estate planning.
