my condolence for your loss


To give a quick answer to your question

1) EPF follows the nomination process. If your relative has made a nomination, thing will Just follow who he nominated.

You will have to take his death certificate and go to the nearest epf office to enquire.

Else will follow the distribution act.

2) Credit card. Inform the credit card issuer of your dad death and ask them to cancel the card and appeal for the interest to be freeze pending whatever distribution of the estate.

You will need to send this letters via registered mail or delivery by hand with acknowledgement if things get ugly and they still charge compound interest which the bank is still entitled.

As for the house, I suggest an alternative path to transfer the property which is via Small Estate Distribution.

It works under 2 conditions

1) value of the property is below rm2 mln

2)all beneficiary must agree to how the property is going to be transferred

Plus you can include all other assets including bank accounts, shares provided condition (2) is achieved

Please Google small estate distribution.

Go to the land office at Wisma Jpuem or nearest land office if you are from outside Klang Valley. They are very helpful and understanding and the process can be settled in under 6 mths.

You don't need lawyers and its very cheap.

Cheaper than even Amanah Raya

But conditions (2) must be achieved and you must have a property and value of property is below 2 mil to be distributed

P/S what is the credit card debt.

Remember, Banks can't sue a dead person but can only sue the administrator of the estate

Btw. Under the small estate distribution, someone must agree to be the administrator

This post has been edited by cfa28: Aug 2 2020, 04:33 PM

Thank you for the reply.

The house loan is fully paid off.

My relative has outstanding balance on his credit cards. The amount is significant.

Hence wonder will bank take over the house in order to offset the outstanding balance?

Thanks again!

Actually a friend of mine, where he father actually left behind big pile of credit card debts. The bank actually willing to close the case by offering big discount for him to clear the outstanding

Technically they can only sue the administration of the estate.

The administration of the estate is only suppose to transfer the estate or property to the beneficiaries after setting all liability including loans and taxes.

If you are selling the property then it's simple but if you are only going to transfer ownership, do you have surplus cash to settle the credit card debts.

You can use the epf account

How big of an account are we talking about.

The insolvency act has been amended to increase the amount to declare someone as insolvent is RM50K.

Another point you have to consider is whether your relative owe irb any taxes.

Now irb is the biggest d1ckhead in Malaysia and will bite and not let go if your relatives own any taxes especially if they were doing business


What is the market value of the property

Does your relative have any will or bank account with the same issuing bank. Under right of set-off, the bank can use cash and deposit under the name of the card holder to offset against any amounts owing on other accounts

That's why my loan and deposit account are different banks as far as possible.

This post has been edited by cfa28: Aug 2 2020, 05:32 PM

The property value is enough to cover outstanding balance but my relative family has no intention to sell off the house. My relative has credit cards from banks with saving account. No will from my relative.

Hopefully the banks are kind enough to give discounts so my relatives family can settle the outstanding balance and can withstand their life.

Appreciate if you could provide other information or advice on this case.

Many thanks...

This post has been edited by HP Computer: Aug 2 2020, 07:32 PM

Honestly I have nothing new to add.

I take it from your case, your relative probably passed without a will.

In this case, you will follow the Distribution Act. But are the beneficiaries willing to cooperation on the distribution cos if you use the Small Estate Distribution its even cheaper than getting a probate with a will.


The only requirement is that you must have a property or properties with combined value of below RM2 mil and all beneficiaries can agree with the distribution allocation.

But your issues is with the credit card debt cos the executor of the estate is not supposed to distribute the estate until all liability are settled.

Who is going to be the executor?

You also need to find out who is the nominee for the epf account.

You better hope it's not the parents of the deceased cos it it is, you're forked.

It then goes to the beneficiaries of the deceased parents either based on the parents will or Distribution act at the time of the parents passing.

But first thing first is

1) Find out who is the EPF nominee

2) how much cash can you withdraw using ATM

3) inform bank to freeze the CC after taking out the cash in (2) and try to do final settlement. Important to get in writing that whatever payment you make, its considered as FINAL SETTLEMENT. You must include the words final settlement in your letters to the bank and if it's accepted, the bank then cannot ask for more money in future.

4) go to the land office to ask on the procedure for the small estate distribution

Upon notice of death, Banks will usually send a letter drafted by lawyer stating the outstanding debt and that interest will continue to compound until full settlement by the estate of deceased. Legal action will be taken if there is no settlement.

What we can do is to inform bank of the intention to repay upon distribution of estate. On settlement, can negotiate with banks to waive all compounded interest and only paid the principal amount owed on the official date of death. Banks will usually settle for that amount because at least they receive something and do not need to take legal action. (Own experience)

If someone knows he is dying, he should be going on a shopping spree and max out all his Islamic cards!!

its subject to case by case, best is to talk to the bank and try to ask for leniency.

afaik last time mbf (no more now) waived off cc debts of my late relatives around 4k.

there is also credit shield program by the banks which will settle all outstanding of the deceased.

Hi just my sharing only

on 2017 my bro pass away and left cc debt but we manage to settle it out

For Citibank = you need to call their CS and they will blocked the card and also stop interest. After that you need to walk in to their hq to appeal for reduce the debt. I manage to waived all interest and only pay the principle amount. Its recommended you bring the letter state that you are the family member of the card holder, willing to pay in full and request for discount. I manage to get waiver of interest plus 1-2k discount since pay in full ( subject to the management i think)

For AEON = AEON is quite tricky as you need to follow up with them bnyak kali. 1st, call them to blocked the card and they will ask you to send email to their CS. later someone from credit card recovery department will contact you and offer some 'discount' to pay in full. Keep in mind that Aeon is a bit unfriendly especially if you ask for any waiver as they keep mention they are not bank.

For Public bank = quite easy. call their CS and later CS will ask for death cert. Also you can ask CS to waiver the interest if any and they will call you back the amount you need to pay

TLDR
Immediately after the decease of card holder, call bank and they will assist you

Hi there, my father passed away recently. Upon calling citibank, they told me to mail them the Letter of Administration then only they will freeze the account. Until then the account remains active and the interest will still be charged. May I know is Letter of Administration really necessary ? I mean we are already in the midst of getting the letter done but it's taking longer than expected. Is that the case for you also ? Thanks in advance.

Weird. My late bro pass away on 2017 and might the bank change the policy. My process simplify like this;

call citibank, inform I as sibling for my late bro. The account freeze in order to freeze the interest
ask them for discount (because I willing to do full settlement) or paymenr scheme
they will ask you to come to citibank hq ( mine like in KL for my case )
you however need to bring letter asking to reduce interest or discount for full settlement
account is settle

You can try to ask different agent, and might get a different answer. Normally this case handle by recovery team