When a person dies intestate (without making a will), his assets will become an estate. After his liabilities have been settled, his remaining estate will be distributed according to the Distribution (Amendment) Act 1997 in West Malaysia and Sarawak. Intestate Succession Ordinance 1960 is the law governing intestacy in Sabah. Both laws are only applicable to non-Muslims and non-natives. For Muslims, the law governing intestacy is Islamic Distribution Laws.
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Please read my posts titled WHAT WILL HAPPEN TO A PERSON'S ESTATE IF HE DIES TESTATE (WITH A WILL)? (January 28, 2009) and FINANCIAL PLANNING SEMINAR (THIRD DAY). (January 21, 2009).