Estate Planning Basics
Protecting Your Family's Future with Islamic Wisdom
Why Estate Planning Matters
Estate planning is an act of love and responsibility. It ensures your wishes are honored, your family is cared for, and your legacy lives on in the way you intended.
In Islamic estate planning, we combine divine guidance with practical wisdom to create a plan that brings peace to your family.
What Happens to Your Estate
1. Funeral & Burial Expenses
The first priority is ensuring a proper Islamic burial.
- • Costs: Burial plot, funeral services, transportation, etc.
2. Outstanding Debts
All debts must be settled before any distribution.
- • Includes: Mortgages, loans, credit cards, medical bills, taxes
3. Administrative Costs
Legal and administrative expenses of settling the estate.
- • Includes: Legal fees, court costs, executor fees, property maintenance
4. Distribution of Remaining Estate
After all expenses and debts are paid, the remaining estate is distributed according to Islamic law and your wishes through Faraid, Wasiat, and Hibah.
Islamic Estate Planning Tools
Faraid
The automatic distribution system that ensures every family member receives their rightful share.
- • Automatic for all Muslims
- • Covers spouses, children, parents
- • Fixed shares based on relationships
- • Cannot be changed or overridden
Wasiat
An Islamic will that allows you to distribute up to one-third of your estate to non-heirs.
- • Maximum 1/3 of estate
- • Only for non-heirs
- • Can include charity
- • Must be witnessed properly
Hibah
A gift given during your lifetime that transfers ownership immediately.
- • Given while alive
- • Immediate transfer
- • Can be to anyone
- • Reduces estate size
A Practical Example
Sarah's Estate Plan
Sarah has an estate worth RM 2,000,000. She wants to ensure her family is protected and some of her wealth goes to charity.
Expenses & Debts
- • Funeral costs: RM 15,000
- • Outstanding mortgage: RM 300,000
- • Medical bills: RM 25,000
- • Legal fees: RM 20,000
- • Total: RM 360,000
Remaining Estate: RM 1,640,000
- • Wasiat (1/3): RM 546,667
- • Faraid distribution: RM 1,093,333
Sarah's Wasiat (RM 546,667)
- • RM 200,000 to Islamic charity
- • RM 150,000 to her best friend
- • RM 196,667 to her nephew
Benefits of Estate Planning
For Your Family
- • Clear guidance during difficult times
- • Reduced stress and confusion
- • Faster distribution of assets
- • Protection from disputes
- • Financial security for loved ones
For Your Legacy
- • Your wishes are honored
- • Charitable giving opportunities
- • Family values preserved
- • Islamic principles followed
- • Lasting positive impact