When we imagine Ramadan, our minds immediately draw up pictures of people freely sharing their meals during iftar dua while the amber evening sun dips dreamily into the horizon. Ramadan is synonymous with the giving season. Charitable giving, however is not limited to Ramadan.
Whether you desire to sponsor widows or the university education of a student from your hometown, all these are captured under Zakat.
Zakat, which is the third pillar of Islam, is a compulsory giving required from every financially stable Muslim (anyone who can meet their daily needs on a regular basis). Zakat is an obligation for those who have acquired wealth to respond to people in need, to give back to the community. More generally referred to as Charitable giving, Zakat is the act of giving money or other items to the less fortunate, either directly or through a charitable Trust.
The joy of charitable giving extends beyond the contentment of graciousness, to a veritable tax-efficient tool in an Estate Planning arrangement. Integrating charitable giving into your Estate Plan is one of the factors that state governments consider during probate procedures. In obtaining a Grant of Probate, a probate judge may consider the reduction of estate duties from 10% to 7% or less when charitable giving is involved. It is profitable to be charitable.
As a Muslim, it is important you consult a professional Estate Planner to assist with setting up a Trust arrangement where 2.5% of your assets/wealth are set aside annually for Zakat.
A member of the reputed FBN Holdings Group, FBN Trustees has a team of experts who are knowledgeable about the Quran and can offer guidelines in keeping with the Holy Book’s dictates. Our experts also 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 wealth transfer objectives, especially as we realise that no two individuals have exactly the same needs.
Start planning for the future of your wealth today. Contact FBN Trustees to schedule a consultation.