Join-named assets just go to the joint holder?

I heard a lot of people saying, "No worry, I put join name for my bank account, my house, my safe deposit, etc. If I die hor, I ask my spouse quick quick take my money out only declare death lor"

Do you think this is the best way to make sure your money not to be frozen?
Is this the good way to distribute your asset?
Our country is more and more advance now, do you think you will be faster than government system?

There are 2 main ways assets can be co-owned, either Tenancy in Common or Joint Tenancy. In Malaysia, co-owned assets are almost always Tenancy in Common.

Let's assume that you open a join-named bank account with your spouse (or any other person) with
either one to sign. The idea is that in the event one person pass away, the other person can continue to withdraw the money. Many Malaysians assume that money in join-name account automatically belongs to the surviving person if one person dies. Unfortunately, this is not the case because of tenancy in common laws.

Although there are cases where people withdraw money without informing the bank that one account holder had passed away, the bank has a legal obligation to protect the money. When a bank realizes that one account holder had died, they will freeze the bank account, until the rightful person claims the money. The rightful owner of the money depends on whether the deceased person wrote a Will or not. If the deceased did not write a Will, then it be distributed according to the Distribution Act in Malaysia. If the deceased has a valid Will, then the money will be given to the beneficiary named in the Will.

Before the money can be given to the rightful beneficiaries, it has to go through a legal process called probate.

As part of the probate process, the estate of the deceased is used to settle medical bills, funeral expenses, taxes, debts and loans first. Only after all this has be settled, that the balance of assets are distributed. The reason banks and other financial institution freezes accounts is this protects all parties involved - the creditors and the rightful beneficiaries. Now you know why banks don't just release money to the family no matter how desperate the situation.

Tenancy in common not only affects bank accounts but any form of co-owned property including houses, land and business entity.

Hope you understand why having jointly name assets does not solve the issue of passing assets to the survivor.

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Source: LegalWillsMalaysia.com