You and I both know that life is unpredictable. One day, you’re here, living your best lives, and the next, we’re faced with the reality that nothing lasts forever. It’s not the most cheerful topic, but it’s important to talk about what happens to everything we’ve worked so hard for when we’re no longer around. That’s where a last will comes in. 

If you’re living in Indonesia or have assets here, signing a last will is not just a smart move. It’s the ultimate hack to protect your loved ones and ensure your wishes are respected.

Why You Need a Last Will

Let’s start with the basics. A last will, or testament, is a legal document where you state how your assets should be distributed after your passing. Without one, your estate will be divided according to Indonesia’s inheritance laws, which might not align with your personal wishes. This could lead to unnecessary disputes among your family members, and let’s be honest, no one wants to leave behind a legacy of conflict.

In Indonesia, inheritance matters are governed by three main legal systems: the Civil Code (Kitab Undang-Undang Hukum Perdata), the 1974 Marriage Law (Undang-Undang Nomor 1 Tahun 1974), and the Islamic Compilation Law (Kompilasi Hukum Islam). Each has its own rules, and which one applies to you depends on your religion and marital status. Let’s break it down together.

Legal Grounds for a Last Will in Indonesia

1. The Civil Code

The Civil Code, which applies to non-Muslims, is one of the oldest legal frameworks in Indonesia. It provides clear guidelines on how a last will should be created and executed. According to Article 875 of the Civil Code, a last will is a document in which someone declares their wishes regarding the distribution of their estate after death. It must be made in writing and signed in the presence of a notary and witnesses to be legally binding.

One key point in the Civil Code is the concept of legitime portie or the reserved portion. This ensures that certain heirs, such as children and spouses, cannot be entirely disinherited. For example, if you have two children, they are entitled to at least half of your estate, regardless of what your will says. While this might limit your freedom to distribute your assets, it also protects your family’s rights.

2. The 1974 Marriage Law

The 1974 Marriage Law plays a significant role in inheritance matters, especially for married couples. Under this law, assets acquired during marriage are considered joint property (harta bersama), unless stated otherwise in a prenuptial agreement. This means that when one spouse passes away, the surviving spouse is entitled to half of the joint property, while the other half is distributed according to inheritance laws.

If you’re married, it’s crucial to understand how this law impacts your estate planning. For instance, if you want to leave a specific asset to someone other than your spouse, you need to clearly state this in your will. Otherwise, the default rules of joint property will apply.

3. The Islamic Compilation Law

For Muslims in Indonesia, inheritance is governed by the Islamic Compilation Law, which is based on Sharia principles. This law outlines specific shares for heirs, such as children, spouses, and parents. For example, a son typically receives twice the share of a daughter, and a wife is entitled to one-eighth of her husband’s estate if they have children.

One unique feature of the Islamic inheritance system is the concept of wasiyyah, or bequest. This allows you to leave up to one-third of your estate to non-heirs or for charitable purposes. However, any bequest beyond this limit requires the consent of your heirs. If you’re a Muslim, signing a last will is essential to ensure that your wishes are carried out within the framework of Islamic law.

The Process of Making a Last Will

Now that we’ve covered the legal grounds, let’s talk about how you can create a last will in Indonesia. It’s not as complicated as you might think, but there are a few steps you need to follow to make it official.

1. Consult a Lawyer. The lawyer at Wijaya & Co will guide you through the process, ensure that your will complies with the law, and keep the original document in their archives. This adds an extra layer of security and prevents disputes over the authenticity of your will.
2. State Your Wishes Clearly. Be as specific as possible when outlining your wishes. List all your assets, including property, bank accounts, and personal belongings, and specify who should receive each item. If you have minor children, you can also use your will to appoint a guardian for them.
3. Choose Your Beneficiaries. Decide who will inherit your assets. This could include family members, friends, or even charitable organizations. Remember to consider the legal restrictions, such as the legitime portie or the one-third limit under Islamic law.
4. Sign the Will. Once your will is drafted, you’ll need to sign it in the presence of at least two witnesses. This formalizes the document and ensures that it holds up in court.
5. Keep It Updated. Life changes, and so should your will. Review it regularly and update it whenever there’s a significant change in your circumstances, such as marriage, divorce, or the birth of a child.

The Benefits of Having a Last Will

You might be wondering, “Why go through all this trouble?” The answer is simple: peace of mind. By signing a last will, you can:

1. Protect Your Loved Ones. Ensure that your family is taken care of and that your assets are distributed according to your wishes.
2. Avoid Disputes. Prevent conflicts among your heirs by providing clear instructions on how your estate should be divided.
3. Support Your Values. Leave a legacy by donating to causes you care about or supporting non-family members who have been important in your life.
4. Save Time and Money. Streamline the inheritance process and reduce the legal and administrative burden on your family.

Common Misconceptions About Last Wills

Let’s address some myths that might be holding you back from signing a last will:

1. “I’m too young to need a will.” Life is unpredictable, and it’s never too early to start planning for the future.
2. “I don’t have enough assets to justify a will.” Even if you don’t own much, a will ensures that what you do have goes to the right people.
3. “My family will figure it out.” Without a will, your estate will be divided according to default inheritance laws, which might not reflect your wishes.

Final Thoughts

You and I both want what’s best for our loved ones. Signing a last will is the ultimate hack to ensure that your hard-earned assets are distributed according to your wishes and that your family is protected. Whether you’re governed by the Civil Code, the 1974 Marriage Law, or the Islamic Compilation Law, the process is straightforward and well worth the effort.

So, why wait? Take the first step today by consulting a lawyer at Wijaya & Co and drafting your last will. It’s a small investment of time and money that will provide you with peace of mind and leave a lasting legacy for the people you care about most. After all, life is unpredictable, but with a last will, you can take control of what happens next.

My name is Asep Wijaya, writing for Wijaya & Co. We orchestrate to assist you navigate. Thank you for reading my posts.

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Our thanks to Asep Wijaya of Wijaya & Co for sharing this article.