Hi, my mum is over 70 now, and consider whether to transfer the property to children now or do a will? My siblings don't have Malaysian citizenship anymore, so I know there's are more steps and fees when doing a will to my sibling, so we are trying to minimizes the fees when inheriting.

2 properties under 1M each, we can transfer to either of us (3 siblings)

Is she able to transfer property now as inheritance? What are fees involved in doing transfer now vs executing will?

If u guys not asshole better transfer now less complicated. Or put will to divide equally among 3 siblings. Better have in writing as well. So none of u fight and claim unfair treatment over her estate like Chinaman LKY. Damn embarrassing 2 vs 1 sibling over daddy house. But most importantly get lawyer to witness your mom and 3 siblings mutually agreeing . So no one can dispute down the line.

This post has been edited by lordgamer3: Nov 28 2024, 09:42 AM

Transfer now for less trouble.

"Selain itu, Kerajaan juga telah bersetuju supaya duti setem ke atas surat cara pindah milik harta tanah secara kasih sayang melibatkan ibu bapa dan anak, datuk nenek dan cucu dikecualikan sepenuhnya terhad kepada RM1,000,000 pertama nilai harta tanah.

Baki selebihnya daripada nilai harta tanah tersebut tertakluk kepada kadar duti ad valorem dan diberi remisi sebanyak 50% ke atas duti setem yang dikenakan. Layanan duti setem ini terpakai bagi surat cara pindah milik harta tanah yang disempurnakan mulai 1 April 2023."

The stamp duty should be exempted for the 1st property worth less than 1M. In your case, maybe transfer to 2 separate sibling names. Within the 2 siblings, you distribute among your siblings - this one, you have to sort it out between the 3 of you. If not mistaken, any disposal of property within the 1st 5 years will still be subjected to RPGT even thought it is the inheritance asset.

No assholes disputes. Just that siblings are not holding malaysia passport anymore, so it's troublesome, and I already have 1 property under my name (and got IRAS kopi). I didn't realize there is a 5 year cooling period for sell

Or put everything under a trust?

Isn't that additional cost.

If other are no longer holding Malaysia passport, then very likely you need to put under your name. The 5 years cooling off doesn't mean you cannot dispose. You still can dispose it, it is just that any capital gain (different) will be taxed heavily.

So it's best to sell while under mum's name to avoid capital gain tax

Yes, this option is possible provided the parent is willing.

From what i have seen, after transfer all will keluar pattern and become assholes.

$$$ is the root of all evil.

Yes, she can transfer now. It's called 'gift of love' for taxation purposes and should be tax free. Properties too as they are transferred and not being sold, so no RPGT applicable.

While transferring property and inheritance while someone is still alive is a way to avoid inheritance tax, Malaysia still doesn't have this form of taxation. However, transferring away properties while still alive does alter family dynamics and relationship. So do consider that.

Best course of action is for your mom to ask all siblings (and their partners) to come attend a meeting so all this can be discussed in open and any objections / dissatisfactions can be heard.

Transferring is surely cheaper than will. Will involve writing the will, custody of the will, executing it with court probate...

ur siblings not malaysian anymore, cannot hold the property via normal love & affection transfer (inherit now while your mum is still alive), but can do so under probate (after your mum passes).

if no intention to keep the house for own stay, sell it under ur mum's name, no tax payable under RPGT.

if inherit via probate, if sell within 5yrs kena tax RPGT.

Is RPGT 5 years for multiple properties or just first residence?

We don't have any objections, just finding the best way to avoid unnecessary taxes/fees.

It applies for multiple properties. If you hold the ownership > 5 years ( on the 6th year), any gain in value will not be subjected to RGPT.

There is also once in your lifetime as citizen, you can get 1 waiver for the RGPT for one of the property you sold. It can only be used once as a citizen.

all properties are subject for RPGT, currently if u hold the property for more than full 5 yrs (means sell during 6th year) then RPGT is 0% for malaysian citizen/PR. doesn't apply to foreigner & companies.

each malaysian citizen have once in lifetime waiver for RPGT (eg. if u sell within 5 yrs n is subject to RPGT), however it must be a residential property and u need to have water/tnb bill under ur name dated prior to the date of sale to prove

Is this confirmed? The information my lawyer told me is the opposite. This year i consulted my lawyer who specializes in property law (who also drafted the will) and he suggested let the will do it as transferring now is more expensive. Now I'm confused.

This post has been edited by abhipraaya: Dec 2 2024, 03:03 PM

Oh I see. Then cannot transfer to overseas siblings.

So if a child inherit property from parent, likely they won't have water/tnb bill in their name. So still need to switch before it can sell (within 5 years) to avoid RPGT.

why cannot have water/tnb in ur name?

once u inherit, u can just go change the water/tnb account, then only sell it and utilize the waiver.

they just need to see the account owner is urs (tnb/water) on the date before you sell.

If they don't check the water/tnb date, then it is a loophole, no?