The Role of Religion in Estate Planning – An Islamic Spotlight
The Quran is not silent on Estate Planning. In this passage that addresses the subject, it says:
“It is prescribed for you when death approaches one of you, if he leaves behind any goods that he makes a bequest for Parents and (the nearest kinsmen) in goodness, this is a duty upon the pious” (The Qur’an 2:180).
This is a charge for every Muslim to create a Will.
Along with this directive, Islam gives guidelines along which an estate is to be shared – such as the “One-Third’ principle.
Islam Inheritance Planning – Clarifying Gray Areas
Certain misconceptions exist that Muslims are not permitted to have a Will or an Estate Plan. This is largely because the distribution of assets is already stated in the Quran. However, as seen above, the Quran advises that every Muslim have a written plan following the guidelines from the Quran.
In order to ensure that your inheritance is distributed according to the stipulated guidelines of the Quran, it is important to put it in a Will.
With an eye to pre-existing laws that appoint the state as the executor of an Estate when the owner did not leave a Will, not writing a Will leaves the door open for a non-Islamic authority (e.g. the state) to distribute your estate according to its own views which may differ from your own.
As expert practitioners, we recommend having an inheritance plan that outlines your desires so that your goals, objectives, and beliefs are ensured even when you are no longer around.
FBN Trustees, a member of the reputed FBN Holdings Group, 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.
Begin your wealth transfer plan today and afford your loved ones the opportunity to reach for success. Contact FBN Trustees to schedule a consultation.