What Is A Grant Of Probate (GP) And Letter Of Administration (LA)?

So, before explaining about the Grant of Probate and Letter of Administration let’s look at the important terms that we should know:

• Testator

The person who writes/makes a will.

• Executor

An executor is someone who would execute the Will of the decedent.

• Administrator  

The person who will be administering the estates of the decedent if there’s no executor named.

• Summary Administration 

            This is a legal instrument in which the executor requests to step down as an executor for the assets which are less than RM600,000.

What Is A Grant Of Probate (GP)?

A grant of probate is a grant of permission which will be issued by the High Court to the Executor so that the executor would be able to administer the Will according to the decedent’s wish.

What is a Letter of Administration (LA)? 

If an individual does not have a will the testator’s family members have to apply for a Letter of Administration in order to access the assets,money and property of a person who died without a will.

What is the process for grant of Probate (GP)?

When an individual dies their assets are frozen. Which means the individuals assets cannot be sold or cashed until the estate administration is complete. The executor should apply for a grant of probate from the High Court so that he/she may execute the will. Once the application is made the court will consider the application during a hearing. This process will take from 3-6 months and the cost may vary. Before applying for the Grant of Probate we should make sure that the following documents are complete:

• Death certificate of the decedent.
• A copy of the  executor’s identity card (IC).
• Copies of identity card of the beneficiaries. 
• An original copy of the Will done by the testator.
• Evidence of the property.
• A home loan statement if there is one.
• Valid documents of the assets 
• Valid documents of the debts and liabilities. 

After the grant of Probate is issued the executor can start distributing the estate according to the testator’s wish. Simple as that.

What is the process for a Letter of Administration(LA)?

 A letter of Administration is needed when an individual dies without a Will. There are 3 ways to apply for a Letter of Administration in Malaysia. The first way is to apply for the Letter of Administration through a High Court. A letter of Administration should be  filed with the following documents: 

• Death Certificate of the decedent 
• Details of the applicant 
• List of assets of the deceased
• List of possible beneficiaries 
• Note of any interested applicant

This process will take about 6 months to 2 years to be approved. In addition, if the estate is valued up to RM500,000 the applicant must provide two sureties. This sureties has to be a malaysian citizen who holds the same value of the testator’s estate. Once the Letter of Administration is approved the administrator can transfer all the assets from their estate to their own names and distribute accordingly. The administrator will have to apply for a confirmation on the distribution as per the Distribution Act 1958.

The second way is only available for estates below RM600,000  which are qualified for administration  through Amanah Raya Bhd, which is a trustee owned by the government. This might take about 4 to 6 months for estates with movable property such as cash and cars and it might take up to a year for estates that are immovable assets. Moreover, any beneficiary of the deceased may make this application. The fee is based on the value of the estate. This fee is approved by the law under the public trust corporation Act 1995 and Probate and Administration Act 1959.Here’s a rough expect of the fee:

Estate Value	Fee
First Rm 25,000	1%
RM 25,001 – RM 225,000	2%
RM 225,001 – RM 250,000	3%
RM 250,001 – RM 500,000	4%
RM 500,000+	5%

The third way is only available to estates which include immovable assets. Application can be made under the small Estate Distribution Act 1955. The value of the immovable estate should not be more than RM2 million in order to be qualified for this option.  This option does not need a lawyer to execute and it is definitely cheaper than the other alternatives. There’s no fees that you have to pay to the land of office for this petition. You have to complete a Small Estate application. There are a list of documents that we have to submit to the  land office:

• Form A of small estate application (available in the land office itself).
• Identity card of the beneficiaries (IC).
• Marriage certificate of the decedent (if there’s one).
• Death certificate of the decedent.
• Evidence of assets.
• Valid copy of the land title from the land office.
• Quit rent and assessment receipts. 

Once the application is made there will be a hearing  to resolve the estate administration this process takes about 3 months. If the court is satisfied with the evidence given, the court will issue a Letter of Administration and will order for distribution of the assets.

Here’s a rough expect of the fee for this service:

Estate Value	Fee
RM1 – RM1000	RM10
RM1001 – RM50,000	RM30
Greater than RM50,000	0.2% of estate value