Not Having a Last Will in Indonesia? Intestacy is Imminent

So, you’re living in Indonesia, enjoying the tropical vibes, the delicious nasi goreng, and the stunning beaches. But have you ever thought about what happens to your stuff when you kick the bucket?

I know, it’s not the most fun topic, but trust me, it’s important. If you don’t have a last will, intestacy is imminent.

And believe me, you don’t want that mess.

What is Intestacy?

First things first, let’s talk about intestacy. It’s a fancy legal term that basically means dying without a will. When this happens, the government steps in and decides who gets your stuff.

And let’s be real, do you really want the government making those decisions for you?

I don’t think so.

The Legal Grounds

In Indonesia, the legal framework for intestacy is rooted in two main sources: the Civil Code and the Compilation of Islamic Law (KHI).

Let’s break it down.

The Civil Code

The Civil Code, or Kitab Undang-Undang Hukum Perdata (KUHPer), is the go-to for most Indonesians. According to Articles 830 to 1130, if you die without a will, your estate will be distributed according to a strict hierarchy of heirs.

Here’s the pecking order:

1. Spouse and children. They get first dibs. Your spouse and kids will share your estate equally. If one of your kids has already passed away, their share goes to their children, your grandkids.
2. Parents and siblings.  If you don’t have a spouse or kids, your parents and siblings are next in line. They’ll split your estate equally.
3. Extended family. No spouse, kids, parents, or siblings? Then your estate goes to your extended family, like aunts, uncles, and cousins.
4. The state.  If you have no living relatives, your estate goes to the state. Yup, the government gets everything.

The Compilation of Islamic Law (KHI)

For Muslims in Indonesia, the KHI is the guiding light. It’s a bit different from the Civil Code, but the basics are similar.

According to Articles 171 to 193, the distribution of your estate follows Islamic inheritance principles (Faraid).

Here’s the lowdown:

1. Spouse, children, and parents. They get the lion’s share. Your spouse gets 1/8 if you have kids, or 1/4 if you don’t. Sons get twice the share of daughters. Parents get 1/6 each if you have kids, or more if you don’t.
2. Other relatives.  If you don’t have a spouse, kids, or parents, your estate goes to other relatives like siblings, grandparents, and uncles/aunts.
3. Baitul Mal.  If you have no living relatives, your estate goes to Baitul Mal, an Islamic treasury.

Why You Need a Will

Now that you know the basics, let’s talk about why you need a will.

Here are a few reasons:

Control

With a will, you get to decide who gets your stuff. Want to leave your prized guitar to your best friend? You can do that. Want to make sure your cat Fluffy is taken care of? You can do that too.

Without a will, you have no control, and your estate will be distributed according to the rules we just talked about.

Reduce Family Drama

Let’s face it, families can be complicated.

Without a will, your loved ones might end up fighting over your estate.

A will can help reduce the drama by making your wishes clear.

Protect Your Kids

If you have minor children, a will is a must. You can name a guardian to take care of them if something happens to you.

Without a will, the court will decide who gets custody, and it might not be who you would have chosen.

Charitable Giving

Want to leave a legacy?

With a will, you can donate part of your estate to a charity or cause you care about.

Without a will, that’s not an option.

How to Make a Will

Okay, so now you’re convinced that you need a will. But how do you make one?

Here are the steps:

1. List Your Assets. Make a list of everything you own, from your house to your favorite coffee mug.
2. Choose Your Beneficiaries. Decide who gets what. Be specific to avoid confusion.
3. Name an Executor. This is the person who will carry out your wishes. Choose someone responsible and trustworthy.
4. Write Your Will. You can do this yourself, but it’s a good idea to get legal help to make sure everything is in order. Wijaya & Co can help you do it according to the legal framework.
5. Sign Your Will. In Indonesia, you need at least two witnesses to sign your will. Make sure they’re not beneficiaries.
6. Store Your Will Safely. Keep your will in a safe place and let your executor know where it is.

Final Thoughts

So there you have it.

Not having a last will in Indonesia means intestacy is imminent, and that’s a headache you don’t want.

By making a will, you can control who gets your stuff, reduce family drama, protect your kids, and even leave a legacy.

It’s not the most fun thing to think about, but it’s worth it. So grab a pen, make a list, and get started. Your future self, and your loved ones, will thank you.

Our thanks to Asep Wijaya, Managing Director of Wijaya & Co for sharing this information with us