Malaysia legislation

Section 20

of Administration of Estates Ordinance, 1933

Section 20

Sale of assets for administration purposes

(a)

paying off the deceased’s debts;

(b)

recovering any expenses lawfully incurred on behalf of the estate (including Estate Duty, funeral and other probate expenses);

(c)

discharging pecuniary legacies under the will;

(d)

distributing the estate among the heirs or beneficiaries;

(e)

converting the assets of the estate into property of a non-wasting nature, or into investments approved by the Probate

Officer:

11

Provided that any property or asset specifically bequeathed in the deceased’s will, shall not be sold—

(i)

for the purposes (d) and (e) in any event;

(ii)

for purpose (c) unless the will directs that pecuniary legacies shall be paid in priority to specific legacies;

(iii)

for purposes (a) and (b) until all the other assets of the estates have been realized and the proceeds found insufficient;

and then only so much of such property or assets so specifically bequeathed shall be sold as is necessary for such purpose.

(2)

For the purpose of this section, property “specifically bequeathed” means any particular property or asset (other than money) bequeathed to any particular person or persons or for any particular purpose, not being the subject of a residuary bequest.

Abatement of legacies