Muslim Estate Planning
The Muslim inheritance system is usually explained within the framework of Faraid, bequest and gift. While there is no limitation on the transfer of assets during one’s lifetime, the distribution of estates upon one’s demise is subject to Faraid and bequest rules.
The Islamic inheritance law or what we call Faraid determines who will be our heirs and how much they will receive. It is accordance with Allah’s decree in the Holy Koran.
We also have an option to give an ‘unreserved’ portion of our estates (one third, 1/3) to non-beneficiaries. We can do this through an Islamic Will (Wasiat (Wasiyya)), which is very similar to the conventional Will.
The benefits of doing a Islamic Will means you can select who will be your executors to administer your estate, who the guardians of your minor children will be as well as make our intentions known to our family, thus preventing potential family conflicts.