Religion often influences decisions on wealth distribution and management. Islam is no different.
The Qur’an prescribes that all Muslims should have a Will (Al-Wasiyya) in accordance with Islamic Laws. Having a Will does not necessarily mean you have properties to distribute, however, what it must do is detail the plan after you have passed; including how and where you want to be buried, who and what you owe, how the education of your children should be handled, which charities or relatives you want to leave specific things to, etc.
The Qur’an already stipulates how two-thirds of an individual’s Estate (all the properties he/she owns) should be distributed; however, Islam gives allowance for an individual to leave behind one-third of his/her estate to any person or organization he/she chooses (even where they are not Muslim) as long as this person or organization is not a relative already receiving a share of the Estate.
Let’s take a look at three reasons why all Muslims should have a Will in place:
1. Will is a smart financial choice
Considering all the legal proceedings that your family may have to go through otherwise, consulting a reputable organization and writing a Will is a relatively inexpensive process.
By having a Will, the Inheritance taxes your family will have to pay will be considerably reduced.2
2. You ensure your religious obligations are fulfilled
When someone passes away without a Will, he/she is said to have died intestate. In this situation, the Estate of such an individual could then become subject to the laws of the State. All Muslims should avoid this situation by planning ahead in order to ensure that their wealth is distributed according to Islamic Law.
3. Your legacy is preserved
What happens after I am gone? This is a question people periodically ponder. With a Will, you get to decide the future of your wealth. For example, what you will be remembered for, how your children and grand children’s education should be covered, how your business should be managed, or how your wealth should be distributed seamlessly to avoid family disputes – these are all situations whose outcomes can be prescribed in a Will.
FBNQuest Trustees exists to help make wealth transfer processes seamless.
A member of the reputed FBN Holdings Group, we are a team of professionals who have expertise in Islamic Finance and can offer expert guidelines in keeping with what is prescribed by the Holy Book in development of your Estate Plan. We have in-depth industry knowledge, local awareness and relevant experience, having helped develop wealth transfer plans for families over several decades.
You can count on us to provide you with bespoke solutions to address your legacy transfer objectives.
Take the first step in building a lasting legacy today. Contact FBNQuest Trustees to schedule a consultation with one of our experts.