Executor Duties in Malaysia: Debts, Accounts and Personal Liability
In Malaysia, an executor or administrator must collect and protect the deceased's assets, pay the funeral and administration expenses and the debts in the order the law sets, keep proper accounts, and then distribute what remains to the people entitled. These duties come mainly from the Probate and Administration Act 1959 (Act 97) and the Trustee Act 1949 (Act 208), and a personal representative who breaks them can be made to make good the loss personally.
This guide is for executors who want to get it right and for beneficiaries worried about how an estate is being run. It covers non-Muslim estates in Peninsular Malaysia.
Key takeaways
- In Malaysia, an executor named in a will and an administrator appointed by the High Court have the same core duties, and the Trustee Act 1949 treats both as trustees.
- Funeral, testamentary and administration expenses are paid first, and paying beneficiaries before creditors can leave the personal representative personally liable.
- A personal representative is not bound to distribute before one year from the death, under section 77 of the Probate and Administration Act 1959.
- Beneficiaries are entitled to proper accounts, and the High Court can order an inventory and account, direct the administration or revoke the grant for sufficient cause.
- A personal representative who acted honestly and reasonably may be relieved from personal liability under section 63 of the Trustee Act 1949.
On this page
- Who is a personal representative, and when do the duties begin?
- How should an executor collect and protect the assets?
- In what order must the debts be paid?
- When must the estate be distributed, and what accounts are owed?
- When is an executor or administrator personally liable?
- When can a beneficiary apply to court?
- Frequently asked questions
Who is a personal representative, and when do the duties begin?
A personal representative is the person with legal authority to deal with a deceased person's estate. An executor is appointed by the will and confirms that authority by obtaining a grant of probate. An administrator is appointed by the High Court through letters of administration, usually where there is no will or no executor able to act.
An administrator has the same rights and liabilities as an executor and is accountable in the same way (section 31 of the Probate and Administration Act 1959). The Trustee Act 1949 defines a trustee to include a personal representative, so its rules on investment, notices to creditors and relief from liability also apply.
- Taking on the role is a choice. A named executor can renounce probate, and a person interested in the estate can ask the court to call on the executor to prove the will or renounce (section 40).
- Acting without authority carries risk. A person who takes or keeps estate property without a grant, fraudulently or without paying full value, can be charged as an executor in their own wrong and is liable to the estate for what they received (section 65).
How should an executor collect and protect the assets?
The first duty is to find, secure and take control of everything the deceased owned, and to keep it separate from the personal representative's own money.
- List all assets and liabilities at the date of death, with supporting documents: land, bank accounts, shares, vehicles, business interests and money owed to the deceased.
- Open a separate estate account. Mixing estate money with personal funds makes the accounts hard to prove and invites a claim.
- Insure and maintain property, collect rent and recover money owed to the deceased. A personal representative can sue on causes of action that survive the deceased (section 59).
- Notify the Inland Revenue Board (LHDN) of the death, commonly by Form CP57, and settle the deceased's outstanding tax out of the estate.
- Invest spare money only as the will or the Trustee Act 1949 allows (section 4 onwards).
Two dealings need care. Where there is more than one personal representative, all must concur in a sale or transfer of immovable property unless the court directs otherwise, and an administrator needs the court's prior permission to sell, transfer or charge estate land or lease it for more than five years (section 60). A purchase of estate property by the personal representative is voidable at the instance of any other interested person (section 61).
In what order must the debts be paid?
The estate's assets are used first for the funeral, testamentary and administration expenses and the debts, and only the balance goes to the beneficiaries (sections 67 and 68). The order depends on whether the estate can pay everything.
| Item | How it is treated |
|---|---|
| Debt secured on property, such as a housing loan | Paid primarily out of the property charged, unless the will shows a contrary intention (section 70) |
| Funeral, testamentary and administration expenses | Paid first, even where the estate is insolvent (First Schedule, Part I) |
| Other debts, insolvent estate | Paid under the rules and priorities that apply in bankruptcy (section 69) |
| Other debts, solvent estate | Paid in full, with Part II of the First Schedule fixing which assets bear them, starting with property the will does not dispose of, then the residue |
A personal representative may pay or allow a debt on evidence they think sufficient, and compromise claims, when acting in good faith (section 19, Trustee Act 1949). Before distributing, they can advertise in the Gazette for claims, allowing at least two months. After that date they may distribute having regard only to the claims they know of, and are not personally liable to a claimant who did not come forward, although that claimant can still follow the property into the hands of anyone other than a purchaser (section 32).
When must the estate be distributed, and what accounts are owed?
There is no fixed deadline to finish administering an estate in Malaysia, but a personal representative is not bound to distribute before one year from the death (section 77). After that, delay needs a reason, such as unresolved debts, tax or litigation.
| Time | What it means |
|---|---|
| Six months from the death | If no one has applied for a grant, Amanah Raya Berhad or another fit person may be granted letters of administration (section 81) |
| Six months from the first grant | Time limit for a family provision claim by a spouse or dependent child, unless extended (section 4, Inheritance (Family Provision) Act 1971 (Act 39)) |
| One year from the death | The personal representative is not bound to distribute before then (section 77) |
A personal representative must keep accurate accounts of everything received and paid out. In Damayanti Kantilal Doshi & Ors v Jigarlal Kantilal Doshi & Ors (1998), the Court of Appeal stressed that beneficiaries cannot tell whether an estate is properly administered without accounts. When lawfully required, the personal representative must also file an affidavit exhibiting a true and perfect inventory and account (section 62).
Where a minor is entitled, the personal representative may appoint a trust corporation or up to four individuals as trustees of the minor's share and is then discharged (section 75).
When is an executor or administrator personally liable?
A personal representative is personally liable for loss the estate suffers through their own breach of duty, such as misapplying assets, negligence or wilful default. This is traditionally called a devastavit, a wasting of the estate, and it can be enforced against their own estate after their death (section 66).
- Distributing before paying known debts or tax, then finding the estate short.
- Dealing with estate land without the required concurrence or court permission, or buying estate property personally (sections 60 and 61).
- Mixing estate money with personal funds, or using it personally.
- Leaving assets uninsured, uncollected or in investments the law does not allow, or delaying in a way that causes loss.
There are protections. A trustee answers for their own defaults, not those of co-trustees, and may recover proper expenses from the estate (section 35, Trustee Act 1949). The court may relieve a trustee who acted honestly and reasonably and ought fairly to be excused (section 63). The court may also allow a commission of up to five per cent of the value of assets collected, depending on conduct (section 43, Probate and Administration Act 1959).
Under the Limitation Act 1953 (Act 254), most breach of trust claims have a six-year limit and claims to a share of a deceased person's personal estate a 12-year limit, but no limit applies to fraud or to trust property the trustee still holds (sections 22 and 23).
When can a beneficiary apply to court?
A beneficiary can apply to the High Court when a personal representative will not act, will not account, or is running the estate improperly. Court is usually the last step, after a written request for information.
| Problem | Application |
|---|---|
| The named executor will not apply for probate | Ask the court to call on the executor to prove the will or renounce (section 40) |
| No accounts or information | Inventory and account on affidavit (section 62), or an administration action under Order 80 of the Rules of Court 2012 |
| Misconduct, conflict of interest or deadlock | Revocation or amendment of the grant for sufficient cause (section 34) |
| Loss to the estate | Claim for breach of trust to make good the loss |
An administration action does not remove the personal representative. It asks the court to order accounts and direct the administration, and creditors can also bring one. Revocation is the stronger remedy. The Act does not define sufficient cause, and the court looks at the proper administration of the estate and the beneficiaries' interests. Serious misconduct, a conflict of interest and a breakdown in relations that prevents administration have been treated as grounds, but the applicant must prove the problem with evidence. For contested estates, see our probate and estate dispute lawyers page.
Frequently Asked Questions
How long does an executor have to distribute an estate in Malaysia?
In Malaysia, there is no fixed statutory deadline for an executor or administrator to finish administering an estate. Under section 77 of the Probate and Administration Act 1959, a personal representative is not bound to distribute before one year from the death. After that, delay must be justified, for example by unresolved debts, tax or litigation, and a beneficiary can ask the High Court for directions.
Is an executor personally liable for the deceased's debts in Malaysia?
Not for the debts themselves. In Malaysia, the deceased's debts are paid out of the estate, not from the executor's own money. An executor becomes personally liable by distributing before paying known debts or tax, misapplying assets, or negligence that causes loss. Advertising for claims under section 32 of the Trustee Act 1949 before distributing protects against claims the executor did not know about.
Can a beneficiary ask an executor for accounts in Malaysia?
Yes. In Malaysia, an executor or administrator must keep proper accounts of the estate and should produce them to beneficiaries on request. If they refuse, a beneficiary can apply to the High Court, which can require an inventory and account on affidavit under section 62 of the Probate and Administration Act 1959, or order accounts in an administration action under Order 80 of the Rules of Court 2012.
Can an executor be paid for administering an estate in Malaysia?
An executor in Malaysia may receive whatever payment the will provides. The High Court may also allow an executor or administrator a commission of up to five per cent of the value of the assets collected, depending on their conduct, under section 43 of the Probate and Administration Act 1959. Proper administration expenses can be reimbursed from the estate.
How do I remove an executor or administrator in Malaysia?
In Malaysia, only the High Court can remove an executor or administrator, by revoking or amending the grant for any sufficient cause under section 34 of the Probate and Administration Act 1959. The court looks at the proper administration of the estate and the beneficiaries' interests. Serious misconduct, a conflict of interest or a deadlock that prevents administration may qualify, proved by evidence on affidavit.
Need advice on your own situation?
Every case turns on its own facts and documents. Our lawyers in Puchong and Mont Kiara advise once we have reviewed your documents at a consultation, online or in person.
Related reading
This article is general information on Malaysian law as at October 2026 and is not legal advice. Laws and procedures change, so please seek advice on your own facts before acting.
