Updated September 26, 2025 by Samantha

Most assets in Malaysia get frozen until the court issues probate, which can take months or years. But EPF and life insurance are different—your loved ones can receive the money in just 2–3 weeks. The key? Make a nomination. Without it, your family may face delays, disputes, or debt issues.

Why Nomination Matters in Financial Planning

As mentioned earlier, when someone passes away — whether they have written a will or not — their assets will be frozen until the High Court issues a Grant of Probate (GP) or a Letter of Administration (LA).

If the deceased has a will, the probate process usually takes around 3 to 6 months. However, without a will, obtaining a Letter of Administration can take years.

Both documents serve the same purpose — to legally unfreeze the deceased’s assets — but the difference lies in who they represent:

- Grant of Probate (GP): Issued when there is a will.

- Letter of Administration (LA): Issued when there is no will.

The Two Assets That Don’t Require Probate

In Malaysia, there are two types of assets that do not need to go through the probate process:

1. Employees Provident Fund (EPF)

2. Life Insurance Policies

This is because both are governed by their own Acts:

- EPF Act

- Financial Services Act (FSA)

These Acts supersede a will, meaning the funds can be paid directly to the nominated beneficiary without court approval.

However, this only applies if you have made a valid nomination.

Why Nomination Is So Important

Nomination ensures that your beneficiaries or family members can receive the money quickly — usually within 2 to 3 weeks. The payout is fast, direct, and debt-free.

Without nomination, your loved ones may face long delays or disputes before receiving the funds.

Trust vs Non-Trust Nomination — What It Really Means

Before you decide who to list as your nominee, it’s important to understand how your life insurance nomination actually works.
Many people don’t realise that the same policy can be treated very differently depending on your marital status and who you name as your beneficiary.

If You’re Single
* Trust Nomination: Applies when your parents are the beneficiaries.
* Non-Trust Nomination: Applies when you name your siblings or others.

If You’re Married
* Trust Nomination: Applies when your spouse or children are the beneficiaries.
* Non-Trust Nomination: Applies when you name your parents, siblings, or others.

In short:
A Trust Nomination means your payout goes directly to your loved ones and is protected from debts or creditors.
A Non-Trust Nomination may still go to your nominee — but creditors can claim it if there are debts or disputes.

Final Thoughts

At the end of the day, choosing between Trust and Non-Trust nomination isn’t just about ticking a box on a form — it’s about protecting the people you care about most.
By knowing how your nomination works, you’re giving your loved ones peace of mind, making sure everything is handled smoothly when the time comes.

If you’re unsure which type of nomination you currently have, check with us. A quick review today can save your family a lot of stress later on.

Whether you want to safeguard your family, expand your wealth, or explore new career paths, FTA is here to guide you every step of the way.

FTA Wealth Solutions is a one-stop financial consultancy in Malaysia, offering holistic services from financial planning and nomination to will writing. As an approved HRDF Corp (Human Resource Development Fund) training provider, we also deliver structured financial literacy and professional development programmes. With over 20 years of industry experience and partnerships with leading providers, we help Malaysians protect, grow, and secure their wealth with clarity and confidence.

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Danau Business Centre, Taman Danau Desa,
58100 Kuala Lumpur

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