By Peter Lee
Billions Left Behind
One of the headlines that caught my eye recently was the staggering total of unclaimed money held by the government. According to the Accountant-General’s Department, the Registrar of Unclaimed Moneys is holding about RM13.3 billion up to April 2025.
This pool of forgotten wealth comes from dormant bank accounts, expired fixed deposits, insurance payouts, dividends, and other entitlements. The money is held in trust under the Unclaimed Moneys Act, and the public can recover it through the eGUMIS system.
But as I read the figure, I found myself asking: what about EPF savings? What about unclaimed insurance proceeds?
EPF & Insurance: Hidden Pitfalls
We’ve seen before that insurance can be a major source of unclaimed payouts. Back in 2017, the Life Insurance Association of Malaysia (LIAM) reported that about RM327 million in life-insurance proceeds went unclaimed over a five-year period.
Similarly, in 2015 it was reported that around RM422 million of EPF savings remained unclaimed. EPF has its own rules — for example, dormant savings of members who reach age 100 may eventually be transferred to the Registrar. Family members must then work with the Unclaimed Money Management Division to recover those funds.
These numbers tell us one thing: a lack of nominations and estate planning can make rightful inheritances very difficult to access.
Real Stories, Real Struggles
To bring this to life, let me share three cases I’ve come across.
Case 1: EPF without nomination
A friend’s brother passed away without nominating anyone for his EPF. The family had to apply for a Letter of Administration (L.A.) because he died intestate. This became complicated because his only son was mentally disabled, his wife had died decades earlier, and my friend was the sole surviving sibling caring for his nephew. To proceed, they needed old death certificates for the deceased wife and parents, which only certain relatives could request forcing them to engage a lawyer. The process became lengthy and stressful.Case 2: Insurance without nominee
A lady bought an insurance policy but never filled in the nominee’s name, despite reminders from her agent. She passed away without a will, and the family was forced to apply for an L.A. To complicate matters, they needed to prove her parents had also passed away, but her only sister was bedridden and could not assist. Refusing to engage a lawyer, the family’s claim stalled indefinitely.Case 3: Missing heir problem
In another case, an elderly lady died without a will or a valid nomination. She left four sons, but one was bankrupt and another had been missing for years. For an L.A., all heirs must consent to the appointment of administrators but finding the missing son became the immediate obstacle.
These are not isolated stories. They reflect thousands of similar situations nationwide, which help explain why Malaysia’s total of unclaimed money has grown so large.
Love Is in the Planning
The lesson is simple: make your nominations for EPF and insurance, and keep them up to date. By doing so, you give your family the best chance of receiving money quickly and without long legal battles.
And if you’re worried about what happens when nominations fail — for example, if a nominee predeceases you or if you and a nominee die in the same tragedy , you should also draft a Will.
In your Will, you can:
- Name substitute beneficiaries for your EPF and insurance money.
- Instruct your Executor/Trustee to place funds for minors or special-needs children into a Testamentary Trust, so that the money is released progressively for living, education, and medical needs.
- Clearly spell out your wishes for children and dependents.
Most importantly, choose your Executor/Trustee and guardians with care, and discuss your decisions with your spouse and family.
Final Thought: How Deep Is Your Love?
At the end of the day, estate planning isn’t just about documents — it’s about love. Allocating your time and planning for your family really shows “How deep is your love”?