Improving Estate Distribution Process through Alternative Dispute Resolution Method: Practitioner’s Perspective

The many unresolved inheritance cases in Malaysia show that estate distribution disputes arising pose significant obstacles, revealing a need for better resolution. News has spread that more than RM90 billion estates in Malaysia are still frozen due to disputes and the failure of consensus between heirs regarding the estate distribution. Considering the trial processes in both civil and Sharia courts are often associated with delays due to their respective procedural rules, this study aims to explore alternatives that facilitate faster and less burdensome estate distribution dispute resolution. Many factors can contribute to the frozen assets, either technical issues or conflicts regarding estate distribution. Through an integrative literature review and qualitative methods, five respondents with expertise in the relevant field were selected for the interviews. Among the respondents were Advocates and Solicitors, Inheritance Consultants, PTG Administrative Officers, officers from the Small Estate Distribution Unit of JKPTG, and an Assistant Manager of Operations from Amanah Raya Berhad (ARB). The identified disputes are family disagreements, communication challenges, outsider interference, and third-party disputes, e.g., financial institutions. The findings show that family disputes, lack of knowledge of Faraid law, and interference from outsiders are the most agreed-upon issues among all respondents. Mediation makes it into the majority vote as a valuable strategy to improve estate distribution due to its cost-effectiveness and straightforward procedure. Mediation is less complex than other ADR methods. The whole process is informal and does not require strict court procedures, making it more accessible and acceptable to the public. Estate distribution should be carried out with complete cooperation from the deceased’s beneficiaries, the administrative agency, and all other parties involved. Hence, ADR is a viable solution to help speed up the estate distribution, prevent unnecessary prolongation, maintain family privacy, and help reduce the court’s workload.