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7/30/2019 ss Tuto 6
1/2
1. Whether the deceased entitled the whole of his first wifes property?
The deceased, Kong Siew Chong was not entitled to the whole of the first wifes
property. The deceased was granted letters of administration on 8th
October 1974 and
it was issued to him on 27th January 1977. The estates of Ng, Kongs deceased first
wife, only consisted of a landed property situated in Jalan Pahang, KL.
According to the old distribution law, S 6(1)(i) stated that Kong should be the
sole beneficiary of the property. The property was then transferred and registered in
the name of Kong as representative. Nonetheless, Kong died on 9th
July 1990 without
completing the transfer of the property into his own name. HSBC(M) Trustee Berhad,
the applicant, made an application to the High Court for the grant of letters of
administration de bonis non in respect of the first wifes estate. As Kong was granted
administration of the estate, but died without completing administration, Kong was
not entitled to the whole of his deceased wifes property because he was too slow to
take steps as an administrator to transfer the property. Had he done so, the distribution
of the estate would have been proceeded as if the 1997 Act had not been passed, that
is, Kong would then received the whole of the property according to the unamended s
6(1)(i) of the Distribution Act 1958.
The distribution of the estate of the deceased who died intestate, according to s
4 of the 1997 Act, is deemed to have commenced on the date in which steps had been
taken by the administrator to transfer the property. Since no steps had been taken to
transfer the property, the distribution shall be in accordance with the provision of the1997 Act. Kong was entitled to only 1/3 of the legal beneficial interest in the property.
The four children were entitled to 2/3 of it.
Meaning of Distribution
Justice Kamalanathan referred to Soundara Achi v Kalyani Achi & Ors [1955]
MLJ 147 and concluded that commencement of distribution of property does not start
with the grant of letters of administration. The word distribution in the context of s 4
of the 1997 Act means it refers to the commencement of a step required to effect the
actual transfer of the property. The learned judge opined that distribution of landrequires a lengthy process. It includes the signing of the memorandum of transfer by
administrator, lodgment of the duly executed transfer with the certificate of title and
the actual registration of the title in the Registrar of Titles. The learned judge further
stated that distribution of land should be deemed to have commenced as soon as an
immediately registrable instrument is available, that is, when the transfer is executed
with the administrators signature.
Meaning of Property
The learned judge held that the word property in s 4 of the 1997 Act should
be construed as referring to the specific assets as comprising the partially
7/30/2019 ss Tuto 6
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administered estate. (After the payment of the deceaseds debts, funeral and
testamentary expenses.)
According to the learned judge, property in s 4 of the 1997 Act should be
taken as part of the assets of the estate. The preamble to the Distribution Act 1958
stated that it is an Act relating to the law of distribution of intestate estate, while s 4
of the 1997 Act is a provision which regulates the distribution of moveable and
immoveable property. But the meanings of estate and property are not defined in both
the Acts.
2. Whether steps are taken by administrator to distribute assets before thecommencement of the Distribution (Amendment Act 1997)?
The answer is no. The deceased was granted letters of administration by the courtand it was issued to him on 27
thJanuary 1997. However, the deceased died before the
property was properly transferred to his name.
The judge stated that the distribution of the estate of a deceased who died intestate,
shall be in accordance to s 4 of the 1997 Act that it is taken to have commenced on
the date where steps have been taken by the administrator who was granted the letter
of administration to transfer or distribute part of the assets of the estate as if the 1997
Act had not been passed. If no steps had been taken, then the distribution of the part
of the assets of the estate shall follow the 1997 Act.
Since the deceased did not take the necessary steps, he was not entitled to the
whole of the property. The court decided that the children of Kong are entitled to have
the priority to petition for the letter of administration de bonis non.