Louis purchased a Semi-D house two years ago for RM 650,000. Louis still owes RM 600,000 on his loan, with monthly payments of RM 3,000 at 4.1% interest per annum. Louis lives in the house with his wife and 2-year-old son; both his parents have passed away. Let’s consider this question, “What happens to Louis’s property if something happens to him?”

The Semi-D house will be frozen and become part of Louis’s estate.

It’s commonly assumed that Louis’s wife will automatically inherit the property. Unfortunately, his property will be frozen upon his death, and whether Louis’s wife inherits the property depends on whether Louis has written a will.

If Louis writes a will, he can name his wife as the sole beneficiary of the property and leave all his shares and interest in the property to her. Alternatively, he may leave the property to his son under a testamentary trust in the event they both die together.

However, if Louis dies without a will, his property won’t automatically go to his wife. Instead, it’ll be divided according to the Distribution Act of 1958, with his wife receiving 1/3 shares and his son receiving 2/3 shares of his property.

The bank will hold the property’s title until the debts are fully settled.

Debts don’t disappear with the deceased. Louis’s personal representative, whether his executor or administrator, still needs to use his estate to continue paying off the housing loan. In such circumstances, Louis’s bank would demand his executor to pay the housing loan with Louis’s estate either in installments (RM 3,000) or a lump sum (RM 600,000).

The bank will hold the title deed of the property until Louis’s housing loan has been fully paid off. If the mortgage is not settled, his creditors would have priority over Louis’s beneficiaries on Louis’s estate. During this period, it’s possible for Louis’s family members to continue paying the loans from:

  1. Proceeds of Louis’s Insurance Policies.
  2. Proceeds of Louis’s EPF account.
  3. Their own pockets.

If Louis’s family deliberately fails and/or refuses to pay the housing loan, the bank will apply to the court to auction off the properties unless his family members can show cause to the contrary to set aside the order.

What can Louis do to protect the property and his beneficiaries?

To be safe, Louis should:

  1. Write a will and name his wife as the main beneficiary with his son as the substitute beneficiary. If both die, the property shall form part under a testamentary trust for his son.
  2. Purchase sufficient life insurance to cover his outstanding loan amount and nominate his wife as the beneficiary. In the event of double tragedies where both Louis and wife died together, the life insurance shall form part of the testamentary trust for his son’s living expenses, medical expenses, and education expenses.
  3. Make sure there’s enough cash flow to pay debts and taxes, through his insurance policies or his EPF and any other forms of liquidable assets.

Planning can avoid problems later. Louis can talk to a professional estate planner to get started. By planning ahead, Louis can make sure his family is taken care of, even if something unexpected happens.

You may make an appointment with our legal advisor here:





Louis两年前以65万令吉购买了一栋半独立式房屋。Louis仍然欠着60万令吉的贷款,每月还款3000令吉,利率为4.1%。他与妻子和两岁的儿子一起住在这栋房子里; 他的父母已经去世了。试想想以下情况, “如果Louis发生了什么事,他的房产会怎样?”








  1. Louis保险单里的保险金。
  2. Louis的公积金。
  3. Louis 家人需要自己付款。




  1. 写遗嘱,并将妻子命名为主要受益人,将儿子作为替代受益人。如果两人都去世了,房产将作为遗嘱信托的一部分留给他的儿子。
  2. 购买足够的人寿保险,以支付他的未偿还的贷款,并将妻子指定为受益人。如果夫妻二人同时去世的情况下,人寿保险将成为Louis遗嘱信托的一部分用于儿子的生活费、医疗费和教育费。
  3. 确保有足够的现金流来支付债务,可以通过他的保险金或者他的公积金以及其他形式的流动资产来解决债务。



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