In the complex world of inheritance, the role of an estate administrator is crucial. Lawyer Yusof Halim of Messrs Yusof Halim & Partners explains why proper estate administration is essential, and why misunderstandings about this role are common across the region.
“The estate administrator plays a very important role: they collect the deceased’s assets, pay off debts, and distribute the remaining estate to the heirs”, Yusof reiterated.
Appointing an estate administrator: Two approaches
According to Yusof, there are two main ways to appoint an estate administrator:
Through a will – The deceased can designate someone to manage their estate. This is ideal because the testator knows their family and can appoint someone trustworthy and capable.
Through heirs’ agreement – If there is no will, after the death of the testator, the heirs must agree on an administrator. If they cannot reach a consensus, a court will step in to make the appointment.
Choosing the right administrator is vital. Without a competent and trustworthy person, estates risk being neglected or mismanaged. In neighboring countries, unclaimed or abandoned estates are estimated to be worth billions.
Common misconceptions and practices
“Many assume the eldest child should automatically be the administrator. But seniority does not guarantee trustworthiness or availability.”
Families often default to a senior heir without considering whether they have the integrity, knowledge, or time to manage the estate properly. Yusof recommends that the deceased, while alive, select someone they trust and who can commit to the responsibilities.
Duties of the estate administrator
An estate administrator’s responsibilities include:
Collecting all estate assets – distinguishing what belongs to the estate from assets belonging to others through a will, hibah or trust assets.
Settling debts and obligations – including religious debts such as Haji, Nazar, Zakat and Fidyah, financial debts to individuals or institutions, and government obligations.
Distributing the estate – following legal inheritance rules or agreed arrangements among heirs.
“The administrator’s primary responsibility is to the deceased, not the living heirs. They must ensure the estate is handled faithfully, debts are settled, and assets are distributed fairly.”
Many people misunderstand that inheritance courts assign specific assets to each heir. In reality, the court only specifies the share each heir receives. Conflicts often arise when one heir expects to receive a particular property, such as a family home. The estate administrator’s role is to allocate properties fairly according to the shares, balancing value among heirs to prevent disputes.
Professional administrators: Avoiding conflicts
“If possible, appoint a professional administrator to avoid conflicts of interest—usually a law firm or accounting firm, rather than an individual practitioner.”
Professional administrators help ensure impartiality and efficiency, especially when family members may have disagreements.
Promoting Awareness
Yusof stresses that estate administration is more than a procedural task—it requires integrity, knowledge, and time. Families are encouraged to plan in advance, select qualified administrators, and understand the responsibilities involved.
“The administrator’s main duty is to carry out the deceased’s wishes faithfully. Many people do not realise that this responsibility is owed to the deceased, not the heirs.”
By raising awareness of these issues, Yusof Halim hopes to prevent mismanaged or abandoned estates and encourage responsible estate planning across the region.