Faraid, hibah and wasiat for property in Malaysia (2026): a practical guide for Muslim families

中文 · Bahasa Melayu · Bahasa Indonesia

By Jason Lim, REN 84424 · IQI Realty · Checked on 13 November 2026

When a Muslim property owner in Malaysia dies, the home is generally divided under faraid, Islamic inheritance law, after debts are paid and any valid wasiat or hibah is carried out. A wasiat can pass up to one third of the estate, generally to people who are not faraid heirs, while a hibah is a gift made during your lifetime. This guide explains how each one touches a house in Johor, in general terms only: for your family’s case, please speak to a Syariah lawyer or the religious authority in your state.

Faraid, wasiat and hibah at a glance

	Faraid	Wasiat	Hibah
What it is	Islamic inheritance shares fixed by Syariah law	A bequest you make, taking effect after death	A gift you make during your lifetime
When it takes effect	On death	On death	When the gift is completed (for land, normally when the transfer is registered)
How much	The whole estate after debts, any wasiat and other claims	Generally up to one third of the estate	What you choose to give, subject to the conditions for a valid hibah
Who can receive	Heirs defined by faraid	Generally people who are not faraid heirs, such as adopted or step-children; heirs only with the other heirs’ consent	Anyone you choose, including heirs

What is settled before anything is divided

The government’s MyGOV portal lists the steps heirs take before applying to divide an estate. In short:

1. List every asset: house, land, savings, EPF, vehicles.
2. Settle debts, including zakat, nazar and bank loans. A home loan may be covered by a reducing-term policy or takaful; check with the bank early.
3. Resolve harta sepencarian. A spouse can claim a share of property acquired during the marriage at the Syariah High Court, and the confirmed share is removed from the estate before faraid applies.
4. Carry out a valid wasiat or hibah first, if the deceased made one that is valid under syarak.
5. Confirm the heirs with identity, birth and marriage documents.

Faraid shares: the general principles

Each share depends on who else survives the deceased. The table shows common cases only; real calculations can be more involved, so heirs rely on the Syariah court or the estate office (MyLand also has a faraid calculator).

Heir	Usual share	Depends on
Husband	1/2, or 1/4 if the wife left children	Whether there are children (or a son’s children)
Wife	1/4, or 1/8 if the husband left children	Whether there are children (or a son’s children)
Daughter, with no son	1/2 for one daughter; 2/3 shared by two or more	Whether there is a son
Sons and daughters together	Share what remains, a son taking twice a daughter’s share	The other heirs’ fixed shares are taken first
Mother	1/6 if there are children (or two or more siblings); otherwise generally 1/3	Children, siblings and the other parent
Father	1/6 where there are children; with only daughters, 1/6 plus any remainder; with no children, the remainder	Children of the deceased

An example from Utusan Malaysia (August 2025): a man leaves a wife, one daughter, his mother, a brother and a sister. The wife takes 1/8, the daughter 1/2, his mother 1/6, the brother 10/72 and the sister 5/72. So a widow living in the family home may own only part of it, and the other heirs have a say in selling or keeping it.

Adopted children, stepchildren and foster children are not faraid heirs, a lecturer noted in a Bernama commentary in 2020. A wasiat or a lifetime hibah is how many families provide for them.

The Syariah court’s faraid order

The Syariah court confirms who the heirs are and their shares, and the heirs present that order to the land office, banks and other agencies (MyGOV). Each state’s Syariah judiciary runs its own procedure. Kedah’s published procedure, effective July 2025, for example, needs a notice of application with an affidavit, the death certificate, the heirs’ identity documents and a list of the assets, followed by an inquiry before a Syarie judge, who issues a faraid order (Perintah Faraid). In Johor, ask the Syariah court in your district which documents and fees apply.

Wasiat: up to one third

A wasiat (Islamic will) lets you leave part of your estate to someone faraid does not cover, or to charity. The general rules, found in state laws such as Kelantan’s 2009 Muslim wills enactment, are:

• One-third limit. A wasiat is generally limited to one third of the estate remaining after debts. Above one third, the excess takes effect only if the heirs consent after the death.
• Not to heirs without consent. A bequest to someone who is already a faraid heir generally takes effect only if the other heirs agree after the death.
• Write it down. Name the property clearly and tell your family where the document is.

A wasiat for a specific house does not by itself put the title in that person’s name; the estate still has to be administered and the transfer registered.

Hibah: giving property during your lifetime

A hibah is a gift made while you are alive, so the property leaves your estate and is not divided by faraid later. For a house it is normally completed by a registered love-and-affection transfer:

• Stamp duty relief for close family. Since 1 April 2023, transfers between parents and children, and grandparents and grandchildren, are exempt from stamp duty on the first RM1 million of market value and pay half on the rest, if the recipient is a Malaysian citizen. Gifts between husband and wife are exempt under a 2007 order. See my guide to transferring property to family.
• RPGT. A gift between spouses, parents and children, or grandparents and grandchildren is treated as no gain, no loss for a citizen donor, but the recipient takes over the donor’s original cost for a later sale.
• Property with a home loan. MyGOV notes that charged property can be given by hibah if the requirements are met. Selangor’s fatwas, for example, accept it where the loan is covered by reducing-term takaful or the bank consents, so speak to the bank first.
• Conditions. Views differ by state. Selangor’s 2021 hibah fatwas (analysed in a 2025 journal article) treat a gift that only takes effect after death as invalid, as it resembles a wasiat, but allow some conditions, such as the giver continuing to use the home.

Some families use a trustee-held arrangement, often called hibah amanah, in which a trustee holds the property or documents and passes them to the named person on death. Such arrangements can be challenged in the Syariah court and their treatment depends on the structure and the state, so ask a Syariah lawyer before signing and tell your family it exists.

How the house reaches the heirs

Faraid tells you the shares; the estate process puts them on the title. For most family homes this is a small estate (pusaka kecil):

Estate	Where it goes	What you get
Total value up to RM5 million (land, money and other assets combined, valued on the application date)	JKPTG’s estate distribution offices, applied for online through MyLand	A distribution order setting out each heir’s share, under faraid or a split all heirs agree (muafakat)
Above RM5 million	The High Court, through a lawyer	Letters of administration, then distribution

The order is then registered at the land office holding the title (PTG Johor or the district land office). Points families often ask about:

• Stamp duty is small for a straight distribution. LHDN’s June 2026 guideline places estate distribution documents under general stamping, generally RM10, and since 1 January 2024 a renunciation by one beneficiary in favour of another in the same estate has carried a fixed RM10. If one heir pays the others for their shares, it may be stamped as a sale.
• No RPGT on inheriting. LHDN treats property passing from the estate to an heir as not taxable; RPGT can apply when the heir later sells. See my RPGT guide.
• A unit without its own title passes through the sale agreement instead; see strata titles explained.

My guide to letters of administration and small estates covers the procedure step by step, and land title searches shows how to confirm the heirs are registered.

Co-owned homes

Co-owners under the National Land Code in Peninsular Malaysia hold as tenants in common, with no automatic survivorship: a deceased co-owner’s share joins their estate and goes through faraid (Planning Malaysia journal, 2023). So a surviving spouse may share the deceased’s half with children and parents. See joint names and tenancy in common, and discuss a hibah of your share or a harta sepencarian record with a Syariah lawyer if this concerns you.

Heirs abroad and non-citizen heirs

• Heirs living abroad can usually consent in writing instead of attending a small estate hearing, and can sign through a power of attorney. See powers of attorney for property.
• Non-citizen heirs generally need State Authority approval to hold land in Johor. The Johor land office’s 2025 fee circular says inheritance and transfers to beneficiaries are not charged the foreign acquisition fee. See foreign beneficiaries inheriting property.
• Malay reserve land can only be held by those the state law allows; see Malay reserve land in Johor before planning a hibah or wasiat of such land.

If some family members are not Muslim, their own property follows different rules: see will writing in Malaysia and what happens when a property owner dies.

After the estate is settled: sell, keep or rent

Once the order is registered, heirs usually sell and divide the proceeds, let one heir buy out the others, or keep and rent the house. Each option starts from a fair market value; see when to get an independent valuation and recorded transaction prices. I help with the property side: pricing, viewings and buyers or tenants. The religious and legal steps stay with the Syariah court, the estate office and your lawyer.

If the family moves within JB, see Muslim-friendly living in Johor Bahru and compare areas such as Tebrau and Setia Indah, Skudai and Tampoi and Iskandar Puteri on my JB property map.

More Johor living guides: Letters of administration and small estates · Transferring property to family · Foreign beneficiaries inheriting property · Muslim-friendly living in JB

Frequently asked questions

How is a Muslim’s house divided under faraid in Malaysia?

After debts and any valid wasiat or hibah, the house forms part of the estate and is shared under faraid. For example, a wife takes 1/8 if her husband left children, and sons and daughters share the remainder with a son taking twice a daughter’s share. The Syariah court confirms the heirs and shares.

How much can I leave by wasiat?

Generally up to one third of the estate after debts. Anything above one third, or a bequest to someone who is already a faraid heir, generally takes effect only if the other heirs consent after the death. Check with a Syariah lawyer or the religious authority in your state.

What is the difference between hibah and wasiat?

A hibah is a gift completed during your lifetime, so the property leaves your estate; for a house that normally means a registered transfer. A wasiat is a bequest that takes effect only after death and is limited to one third of the estate.

Is there stamp duty on a hibah of a house to my child?

Since 1 April 2023, a transfer from parent to child is exempt from stamp duty on the first RM1 million of market value, with half duty on the rest, if the child is a Malaysian citizen. Gifts between husband and wife are exempt. Your lawyer claims the relief when the transfer is stamped.

Who handles a Muslim owner’s estate?

If the whole estate is worth RM5 million or less, the heirs apply through MyLand to JKPTG’s estate distribution office, which divides it under faraid or a split all heirs agree. Larger estates go to the High Court.

Does my co-owner automatically get my share of our house?

No. Co-owners under the National Land Code in Peninsular Malaysia hold as tenants in common, with no automatic survivorship. A deceased co-owner’s share forms part of their estate and is divided under faraid unless it was given away earlier, for example by hibah.

Sorting out the family home after the estate is settled?

Tell me the address or project, where the estate paperwork stands and what the family is considering. I can share recorded prices and asking rents nearby and, once the heirs can sign, help with the sale or letting. For shares, wasiat and hibah, please consult a Syariah lawyer or the Syariah court. You can also book an appointment, or a Zoom consultation if family members are abroad.

Sources: MyGOV, Kematian & Pusaka: pembahagian harta pusaka (division of estates, faraid, hibah and harta sepencarian), checked November 2026; MyGOV, estate values and managing agencies, last updated 21 October 2026; Utusan Malaysia, “84,384 kes harta pusaka kecil selesai tahun 2025”, 29 January 2026; Utusan Malaysia, “Perbetul salah faham bahagi harta faraid” (INTAN commentary), 1 August 2025; Women’s Centre for Change Penang, Distribution (Faraid), accessed November 2026; Jabatan Kehakiman Syariah Negeri Kedah, PK-JKSNK-10 faraid order procedure, effective 20 July 2025; Bernama Tinta Minda, “Wasiat: instrumen penting pengurusan harta pusaka Islam”, 19 June 2020; Enakmen Wasiat Orang Islam (Negeri Kelantan) 2009, sections 6 and 26, via the Kelantan Syariah judiciary; Kamal and Said, “Examining hibah contracts in Islamic law: insights from the 2021 Selangor state fatwa”, IJARBSS 15(5), 5 May 2025; Ministry of Finance, statement on stamp duty exemptions for first homes and love-and-affection transfers, 9 June 2023; LHDN, list of stamp duty orders (including P.U.(A) 420/2007, husband and wife), checked November 2026; LHDN, deemed no gain no loss disposals (RPGT Act, Schedule 2), updated 18 May 2026; LHDN, RPGT: transfer of real property inherited from a deceased estate, checked November 2026; LHDN, Garis Panduan Pengenaan Duti Setem, First Schedule, Stamp Act 1949, 30 June 2026; Business Today, “The significance of RM10 fixed duty” (Malaysian Institute of Estate Planners), 7 March 2024; Arshad et al., “A comparative analysis of the application of joint tenancy in the administration of real property in Malaysia, Singapore and Australia”, Planning Malaysia 21(3), 2023; Pejabat Pengarah Tanah dan Galian Johor, Pekeliling PTG Bil. 3 Tahun 2025 (registration and foreign acquisition fees from 1 July 2025), 13 June 2025

Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 13 November 2026, not legal, religious, tax or financial advice. Faraid, wasiat and hibah rules are applied by each state’s Syariah courts and religious authorities, and estate procedures and fees change; confirm your family’s case with a Syariah lawyer, the Syariah court, JKPTG, the land office or LHDN before you act.