Opening a Bank Account in Malaysia
In general, non-residents are not allowed to open bank accounts in Malaysia unless they can show evidence of an impending residence permit such as an application for a work permit or MM2H.
How do I ensure that my Malaysian assets are inherited by my nominated beneficiaries who may not reside in Malaysia?
Make sure you have a will signed & witnessed in Malaysia covering all your Malaysian financial assets & properly identifying your beneficiaries, wherever they reside. The problem with foreign ID documents such as passport or driving licences is that they need to be revised every few years.
Note: Ensure that you have a separate will covering your assets in EVERY other country to ensure ease of will probate.
Does a will need to be "stamped" to be valid?
Answer from my niece, a solicitor: No
How do I get a will prepared in Malaysia?
Any law firm or professional will-writing firm will do this. A simple will used to cost ca. Rm 500 a few years ago.
I prepared mine for free using a template provided by a solicitor - you simply fill in the list of assets, name(s) of beneficiary & executor(s). In this way, I can update my will whenever required e.g. when I open new bank accounts or changes occur to passport numbers (mine or my beneficiaries).
I'd gladly email the template to any interested party.
Who can act as witness to my will signature?
Your signing of your will must be witnessed by 2 persons, none of whom can be a beneficiary. Witnesses should preferably be someone residing locally who can be contacted for verification purposes. Could be your bank manager, barber, anyone.
Can I name my next-of-kin as the executor of my will?
Yes, you can name anyone to be the executor, as long as he/she is willing, but obviously you should choose someone in whom you have complete trust to ensure that your will is carried out in full accordance with your expressed wishes. You can name multiple executors.
Remember that your will executor has to hire a solicitor to probate your will. I think that means getting a court order directing the banks, Land Office, etc to change to new owner's name for each of your individual assets.
What is the easiest means of allowing my next-of-kin to access my Malaysian bank account?
It's important to note that probating of a will in Malaysia is time-consuming (3-6 months is common). There are various means of avoiding such a delay (answers courtesy of my Customer Relations Officer):
a) If your next-of-kin is residing in Malaysia with you e.g. your spouse, the easiest way is to have a joint banking account where EITHER party has authority to carry out all transactions e.g. signing of cheques, telegraphic transfers, having separate ATM cards & separate internet access.
b) If your next-of-kin, e.g child, is not residing in Malaysia, you (or your spouse) can still open a joint bank account with the child if he/she can physically be present at the account opening. Dear Children - let's do this on your next visit to KL.
It's best to choose a non-fee paying account with internet facilities & remember to keep the account active with at least a nominal transaction every 6 months.
c) Let your next-of-kin overseas know your ATM PIN's &/or internet user names/passwords.
This allows the recipient to move funds from your account to any other external account prior to will probate which may not happen for a few months, possibly longer.
Please note that there are daily limits on ATM cash withdrawals & internet transfers to non-linked bank accounts, including your own accounts with another bank. I'm not sure if there are limits on the quantum of telegraphic transfers initiated via internet banking which does not require the presence of the account holder.
How do I transfer share investments to my next-of-kin?
All share investments in Bursa Malaysia are held in the name of an individual owner - no joint accounts are allowed. However, each Bursa account must nominate a single next-of-kin, so the name of account holder is automatically changed upon probate of will. This may take a few months so these shares will be effectively suspended over a fairly long period - not very desirable at the best of times. To overcome, this, you can assign power of attorney over your share account to anyone you choose & advise your remisier or stock-broker accordingly - a standard blank form is available from your remisier.
As an aside, each Bursa share account has a nominated bank account to which all dividends are paid automatically. Thus it's not a bad idea to open bank accounts for each of your beneficiaries as early as convenience allows (refer earlier discussion on bank accounts).
What happens to my Malaysian house, car or other assets in the event of my death?
Ownership of these assets will be transferred to your beneficiaries upon probate of your last will & testament. They, in turn, can choose to dispose of these assets at will, in which case having a pre-existing bank account could be of great help.
Ideally, your beneficiaries' bank accounts in Malaysia should be linked to their home bank accounts to allow personal internet fund transfers to be transacted once they have returned home. This will minimise transfer costs & also allow them to fine-tune the timing of fund transfers to optimise forex rates.
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