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DISTRIBUTION

Presentation20 (Distribution)

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Page 1: Presentation20 (Distribution)

DISTRIBUTION

Page 2: Presentation20 (Distribution)

On a person's death, an Estate is created. The estate includes all property, real and personal, tangible and intangible, owned or to which the descendant was entitled to, either by law or in equity at the time of his death notwithstanding that the descendant may have become entitled to the same will subsequently after the execution of the WILL or after his death.

A person can die partially intestate, for example, in these circumstances:

- WILL incomplete - WILL does not contain a gift of residue-Legatee predeceased the testator

The residuary gift was for some reason declared ineffective because of uncertainty in the WILL (eg the property was stated as "Dragon House“but no such house exist.

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Sometimes the name of the beneficiary is the same eg both his cousin who are beneficiaries are named Mr Brown,

or that "1 give my Horse to Ali " but the fact that there are more than one horse,

then the question arises as to which horse is meant to be given to Ali.

In those cases above the deceased is said to have died intestate. This will mean that the property of the deceased of which that his interest therein does not cease at the time of his death will be distributed according to the Distribution Act.

But however we must first discuss the Probate And Administration Act

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PROBATE AND ADMINISTRATION ACT

This Act contains inter alia) provisions and requirements of a valid WILL and a plan for intestate succession.

It also prescribes the rules relating to

-the estate administration, -the duties, qualifications and appointment of executors and administrators) -notification of creditors, -the priority for payments of claims against the estate and -the ultimate distribution of the remaining assets and closing the estate

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Part VI is regarding the administration of the Assets.

PROBATE AND ADMINISTRATION ACT

Section 67 states that the property of the deceased person are assets for payment of his debts and liabilities

Section 68(1) states that on the death of the person, the movable property to call in, sell and convert into money such part thereof as may not consist of money. The immovable property to be sold on trust for sale.

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Section 68(2) states that the total money received the personal representatives shall pay all tire funeral expenses, testamentary and administration expenses, debts and other liabilities.

The residue after the 3.bove shall be distributed or invested if the beneficiaries are minors (section 68 (3) )

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DISTRIBUTION ACT 1958

Section 1(2) - It applies in West Malaysia only

Section 2 - It applies to non Muslim only

Section 4 (I) - The distribution of movable property of a deceased person shall be regulated by the law of the country in which he was domiciled at the time of his death

Section 4(2) - The distribution of immovable property shall be regulated by the Distribution Act wherever he may be domiciled at his death

Section 6- regarding distribution of the property