According to EPF public relations general manager Nik Affendi Jaafar, only around 40%, or 4.71 million of their 12.9 million EPF members have nominated their beneficiaries (as of June 2011). This can cause a lot of heartache for the family or next of kin when the member dies.
Without a nomination, the family of the deceased EPF member would have to produce a Letter of Administration, Letter of Probate or Distribution Order from the relevant authorities to substantiate their claim on the savings. This can be a hassle.
By comparison, completing a nomination takes only minutes. What is needed is to fill up the KWSP 4 Form and submit it to the nearest EPF branch. With a nomination in place, there is no necessity to go through the inconvenience of having to produce the aforementioned documents.
When a member nominates his/her beneficiary, he/she is given a notification slip, which should be kept safely or pass it on to his next-of-kin.
In the case of Muslim members, the nominee is supposed to act as an “administrator” (wasi) who will then be responsible for distributing the savings in accordance with the Faraid Law (Islamic law of inheritance and distribution). More details can be obtained on this article, Name EPF beneficiaries before it is too late. You can also find information on Unclaimed Monies.