As of 1 January 2024, the Malaysian government has introduced a nominal RM10 fixed duty on the instrument of transfer of any property by way of release or renunciation by a beneficiary of a deceased estate to another beneficiary entitled under the same estate.
This change promises to simplify the process. It also makes it more economical for Malaysians to deal with the complexities of estate distribution. The President of MIEP, Mr See Kok Leong had highlighted the impact of the new RM10 stamp duty on estate transfers in a recent media statement. He also outlined its implications for estate planning going forward.
Impact of RM10 fixed duty
Traditionally, the transfer of property rights within the context of a deceased estate could be subject to varying stamp duties. The amount of duties payable would also depend on the nature and value of the property being transferred.
The new RM10 fixed duty will be implemented as a means to reduce the financial burden on beneficiaries. It will primarily facilitate a smoother transition of assets within families. It will benefit Malaysians by ensuring that the wishes of the deceased are fulfilled without undue financial strain.
Simplify estate planning
This change is not merely an administrative one. It reflects a deeper understanding of the difficulties that beneficiaries face with regards to estate planning. This results in a significant reduction in cost associated with the transfer of property between beneficiaries of the same estate. This move removes one of the potential hurdles families face during an already difficult time.
For estate planners and professionals within the Malaysian Institute of Estate Planners (MIEP), this update is a welcome development. It streamlines the process of advising clients on estate distribution strategies. This move also allows for a more straightforward implementation of the deceased’s wishes. It also places greater emphasis on the importance of proper estate planning and the role it plays in avoiding unnecessary complications and expenses.
By making it easier and more affordable for beneficiaries to transfer property amongst themselves, the government is facilitating a smoother grieving process, free from the added worry of hefty stamp duties.
In conclusion, the introduction of the RM10 fixed duty for the transfer of property between beneficiaries of the same deceased estate marks a significant advancement in estate administration in Malaysia. It is a great leap forward in terms of reducing the financial burden on citizens during what is often a challenging time, and it reinforces the value of thoughtful estate planning.
