Leaving a legacy of wealth

9/12/2015 02:50:00 pm

Assalammualaikum everyone. 
This will be my second last blogpost on individuals before I move on to business aspects. At any point in our life, I am sure that majority of us already had in mind and already implemented the plans of leaving our wealth, before we pass on. Some of us may be penniless and some with large amount of wealth. But we have to always keep in mind that the right way of distributing wealth is in accordance to Faraidh.

Here are the different methods of leaving your wealth to your beneficiaries/family/relatives:

  1. Faraidh: This is rules that are used to determine which of the relatives of the deceased are entitled to inherit and the portion each is to receive. Of the two-thirds (if one-third is already used for Will), or all of his assets may be distributed. This is to break up the concentration of wealth onto a few individuals and to share with the society. It also encourages people to respect one another of their right of ownership of property through honest means. It also acts as a reminder to individuals that they are not master of wealth but rather trustees to the wealth obtained. Not only that, it consolidates the family system and give incentive to work and encourage economic activity as per required in Islam.
  2. Will (Wasiat): Ability to dispose upon death up to one-third of their property through a will. A will is a legal document which documents instructions on the distribution of your property and the care of any minor children. Assets are referred to upon at the date of death, not at the date of writing the will.The will is being made by a person during his lifetime accompanied with two witnesses.
  3. Gift (Hibah): This is done in a voluntary manner, without receiving or expecting any consideration in return.This aids the means of purifying one's wealth and to lessen the poverty and suffering.
  4. Trust (Waqf): This is like an endowment plan or trust and is being set up during a person's lifetime to fulfil charitable purposes.
  5. Voluntary Charity (Sadaqah): The person giving charity confirms his true devotion and service towards Allah.


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My objective of creating this page is to reach out to more people, to educate about Islamic Finance and Individual Finance, share tips on financial planning and also be able to answer to everyone's queries. So, feel free to share this page and ask me questions. Let's share the knowledge and practice them together. In syaa Allah. Aamiin.