Can you actually reject your inheritance in Malaysia?
Declining inheritance in Malaysia seems like an odd thing to do. Who doesn’t like free things when it has great value or is beneficial? It’s difficult to say no to free things that have benefits. However, it is possible to reject or decline inheritance in Malaysia.
Having said that, there are several reasons why some people reject their portion of their inheritance. The reasons themselves are numerous if not valid. Here are some reasons why some people reject their inheritance in Malaysia.
Children who are not interested in the properties
As odd as that sounds, it’s quite a possible situation. Take, for example, a spouse who has passed away and leaves their inheritance to their partner and their children. The spouse may or may not accept the properties and assets. However, their kids may not want it even though they are entitled to claim their share of it.
The Malaysian Inland Revenue Board and High Court cannot force beneficiaries to accept the deceased’s properties and assets. People can try to convince the children to take up their share of their inheritance. However, no one can force the kids to take it.
If this is the case, most times the unclaimed inheritance will be left as it is until the children come to claim it. At the same time, no one who owns those properties are allowed to sell it to anyone else.
How do kids disown or disclaim the inheritance then?
There are several ways they can disclaim their properties. Although some kids may just not take it for themselves and left it as it is, there are ways to not claim it. Here are some ways the kids can disclaim their share of their inheritance:
- Give an irrevocable and unqualified refusal to accept their share of the assets
- Make a disclaimer in writing
- Make a disclaim within 9 months of the deceased’s death
- The disclaimer cannot have had benefited from the proceeds of the disclaimed property
- Disclaimer cannot have the assets passed to them indirectly
- Disclaimer cannot have any sort of influence over the contingent beneficiary
What will happen to the assets then?
The same thing where if the other owner of the property chooses to sell the property, they will be unable to do so. They cannot sell their share of the properties and assets left to them as it needs the approval of the other beneficiaries too.
Should the beneficiary who inherits their part of the inheritance pass away, later on, the properties and assets will still go to the other beneficiaries. Then again it depends on what is written and officiated in the deceased’s will left behind.
If the remaining parent passed away and left their portion to their remaining kids, they can also do that. However, whether if the kids want to claim it or not, it’s another issue.
What if the kids still do not want to claim their inheritance?
There can be a lot of reasons the kids don’t wish to claim their inheritance from their parents. Regardless of what their reasons are, the unclaimed inheritance will just be left there just like that.
However, there is a solution to this if the kids wish to consider it. That is to just claim their inheritance, then sell it to someone else for a sum of money. This is provided that all beneficiaries of the properties and assets are in 100% agreement with the plan. If one beneficiary says no, then the property will remain there.
Key Takeaway
You can definitely decline your inheritance in Malaysia if you wish to. However, it is not encouraged as it is not a very socially healthy thing to do. If you don’t want the inheritance left to you by your family members, at least try to sell it or gift it to someone who’d like to have it.
