UNCLAIMED ESTATES IN WEST MALAYSIA: A LEGAL ANALYSIS AND REFORM PROPOSALS ON NON-ADMINISTERED ESTATES

In West Malaysia, the existing legal framework categorises unclaimed estates into four distinct types namely, unclaimed money, undistributed funds, ownerless estates (bona vacantia), and estates which are not administered after a deceased’s death. Among these, only the non-administered estate remains idle and frozen, primarily due to the absence of a clear ownership claim and procedural gaps within the legal system. This situation is exacerbated by the existence of various laws that govern different types of unclaimed estates as well as the lack of proactive initiatives by the authorities to trace and manage such estates, particularly when the estate is not administered accordingly after the deceased’s death. Consequently, the number of unclaimed estates continues to grow at an alarming rate, and the beneficiaries are therefore losing out on potential benefits or utilities that they could derive from the ownership of such estates. This paper aims to identify the categories of estates classified as unclaimed and to examine the relevant legal framework in addressing the issue. Employing qualitative research methods, including doctrinal analysis and field interviews, it is observed that the existing legal mechanisms are inadequate to remedy the problem relating to unclaimed estates. Hence, this study proposes measures towards reforming the legal framework for the administration of unclaimed estates, with particular emphasis on non-administered estates. It is anticipated that the proposed reforms may serve as a valuable reference for the Malaysian government in formulating a structured legal mechanism to address the issue effectively and to prevent its recurrence in the future.