waris
Also called: pewarisan
The process by which a deceased person's property passes to their heirs.
What it means
Inheritance (waris) is the process by which a person's property passes to their heirs after they die. In Indonesia, the division of an estate may follow civil law, Islamic law, or customary law, depending on the family's choice and circumstances. The inherited property includes assets such as a house, land, savings, and vehicles, after deducting debts and administration costs. This process often involves documents such as a certificate of inheritance and a deed of division.
Why it matters for families
Careful inheritance planning prevents disputes among family members that often arise after a parent dies. Without a basic understanding, a family may overlook the deceased's debts or miss assets that should be included in the calculation. Decisions such as gifts (hibah), insurance, and joint ownership also affect the size of the estate. That is why discussing inheritance early is part of family financial planning, not a taboo subject.
Example
For example, a mother leaves a house worth Rp500 million, savings of Rp100 million, and a bank debt of Rp50 million. The estate to be divided is the value of the assets minus debts and administration costs. The family then agrees on the division in writing so that no party feels disadvantaged. These figures are only an illustration, not official values.
Common misunderstanding
Many people think inheritance is only about assets, not debts. In fact, the deceased's debts generally must be settled first before the property is divided among the heirs.