So You Think You Can Take On the Intestacy? Execute Your Last Will in Indonesia, Now!

Let’s talk about something most of us avoid: death. 

It’s uncomfortable, sure, but it’s also inevitable. And when it comes to what happens to your assets after you’re gone, the question is: Do you want to decide, or are you okay letting the law decide for you? If you’re leaning toward the former, you and I need to have a serious chat about wills in Indonesia. 

Trust me, it’s better to handle this now than leave your loved ones tangled in legal chaos later.

Why Should You Care About a Will?

Picture this: You’ve worked hard your entire life, built a home, saved money, maybe even started a business. Now imagine all of that being distributed in a way you never intended because you didn’t leave a will. That’s what happens under intestacy laws, when someone dies without a will. In Indonesia, the distribution of assets without a will is governed by the Civil Code, the 1974 Marriage Law, and, for Muslims, the Islamic Compilation Law (Kompilasi Hukum Islam or KHI). These laws are designed to ensure fairness, but fairness according to the law may not align with your personal wishes.

Let’s break it down. Under the Civil Code, inheritance is divided among heirs based on strict legal formulas. The 1974 Marriage Law also plays a role, especially in determining the rights of surviving spouses. If you’re Muslim, the Islamic Compilation Law adds another layer, with specific rules about inheritance shares based on Islamic principles. 

Sounds complicated? It is. That’s why having a will is crucial. It lets you take control.

What Happens If You Don’t Have a Will?

If you die intestate (without a will), your assets will be distributed according to Indonesia’s inheritance laws. Here’s a quick overview of how it works:

Civil Code (for Non-Muslims)

The Civil Code divides heirs into four classes:

1. First Class: Children and their descendants.
2. Second Class: Parents and siblings.
3. Third Class: Grandparents.
4. Fourth Class: Other relatives up to the sixth degree.

The first class of heirs always takes precedence. If you have children, they’ll inherit everything equally. If not, it moves to the second class, and so on. Sounds fair, right? But what if you wanted to leave something to a close friend or a charity? 

Without a will, that’s not happening.

Islamic Compilation Law (for Muslims)

The KHI follows Islamic inheritance principles, which allocate shares based on specific rules. For example, sons typically inherit twice as much as daughters, and a surviving spouse is entitled to one-eighth (if there are children) or one-fourth (if there are no children). While these rules are deeply rooted in religious principles, they might not reflect your personal preferences.

1974 Marriage Law

This law primarily governs marital property. In Indonesia, assets acquired during marriage are considered joint property (harta bersama). If you pass away, half of this joint property automatically belongs to your spouse, while the other half is distributed among heirs. However, complications can arise if there’s no clear documentation of which assets are joint property and which are personal.

Now, imagine the potential conflicts. Without a will, your family could end up in court, fighting over who gets what. 

That’s not the legacy you want to leave behind, is it?

The Power of a Will

Here’s the good news: You can avoid all this drama by drafting a will. A will is a legal document that lets you decide how your assets will be distributed after your death. It’s your chance to ensure your wishes are respected, whether that means leaving everything to your children, supporting a cause you care about, or even setting aside funds for your pet’s care.

In Indonesia, wills are governed by the Civil Code and must meet certain requirements to be valid. Here’s what you need to know:

Types of Wills

1. Testament Olografis. This is the most common type of will in Indonesia. It’s written, signed, and registered at a probate office. The legal experts like Wijaya & Co ensures the will complies with legal requirements and keeps it safe.
2. Holographic Will. This is a handwritten will, but it’s less common and less secure because it’s not registered with a probate office.

Legal Requirements

1. You must be at least 18 years old and of sound mind.
2. The will must clearly state your wishes regarding the distribution of your assets.
3. It must be signed and, if it’s a Testament Olografis, registered with a probate office.

Limitations for Muslims

Under the Islamic Compilation Law, Muslims can only distribute up to one-third of their estate through a will. The remaining two-thirds must follow Islamic inheritance rules. However, heirs can agree to waive this restriction, allowing the will to take full effect.

How to Get Started

Creating a will might sound daunting, but it’s simpler than you think. Here’s a step-by-step guide to help you get started:

1. Take Inventory of Your Assets. List everything you own: property, bank accounts, investments, personal belongings, etc. Don’t forget to include digital assets like online accounts and cryptocurrency.
2. Decide Who Gets What. Think about how you want to distribute your assets. Consider your family’s needs, your personal values, and any specific wishes you have.
3. Choose an Executor. The executor is the person responsible for carrying out your wishes. Choose someone you trust, and make sure they’re willing to take on the responsibility.
4. Consult a Legal Expert. While you can draft a will on your own, it’s a good idea to consult a lawyer like Wijaya & Co to ensure your will complies with Indonesian law. They can also help you navigate any complexities, especially if you’re Muslim or have international assets.
5. Register Your Will. If you’re creating a Testament Olografis, your legal expert like Wijaya & Co will handle the registration process. This ensures your will is legally binding and easy to locate when the time comes.
6. Review and Update Your Will. Life changes: marriages, divorces, births, and deaths can all impact your wishes. Make it a habit to review your will every few years and update it as needed.

Don’t Wait. Do It Now!

I know what you’re thinking: “I’ll get to it later.” But here’s the thing: none of us know how much time we have. Drafting a will isn’t just about protecting your assets. It’s about protecting your loved ones from unnecessary stress and conflict. It’s an act of love and responsibility.

So, let’s not leave this to chance. Take control of your legacy today. Reach out to a legal expert like Wijaya & Co, and start drafting your will. Trust me, you’ll sleep better knowing your wishes are documented and your family is protected.

Remember, you and I have the power to shape what happens after we’re gone. Let’s use it wisely.

My name is Asep Wijaya. Thank you for reading my posts!