Islamic Inheritance Guide
Understanding Faraid: The Divine System of Fair Distribution
What is Faraid?
Faraid is the Islamic system of inheritance that ensures every family member receives their rightful share. It is not just about numbers — it is about justice, love, and ensuring no one is forgotten.
This divine system was revealed to bring peace to families and honour the relationships that matter most.
How Estate is Distributed
Before Faraid shares are calculated, three obligations must be settled from the estate in order:
Step 1: Funeral & Burial Costs
First, funeral and burial expenses are paid from the estate.
Example: Burial plot, funeral services, transportation
Step 2: Outstanding Debts
Any outstanding debts must be settled next.
Example: Mortgages, loans, credit cards, medical bills
Step 3: Wasiat (Up to 1/3)
If the deceased left a Wasiat (Islamic will), up to one-third of the remaining estate can be distributed according to their wishes — but only to non-heirs.
Example: Charity, friends, or extended family who are not automatic heirs
Step 4: Faraid Distribution
The remaining estate is distributed according to Faraid rules. Here are the key shares:
Spouse
- • Wife: 1/4 (if no children) or 1/8 (if children exist)
- • Husband: 1/2 (if no children) or 1/4 (if children exist)
Children
- • Sons: Equal shares (2:1 ratio with daughters)
- • Daughters: Equal shares (half of son's share)
- • If only daughters: They share 2/3 equally
Parents
- • Father: 1/6 (if children exist) or residuary (if no children)
- • Mother: 1/6 (if children exist) or 1/3 (if no children)
Other Relatives
- • Brothers / Sisters: May inherit if no children or parents
- • Grandparents: May inherit in certain circumstances
Baitul Mal
What is Baitul Mal?
Baitul Mal (بيت المال) is the Islamic state treasury. Under Faraid, when the fixed shares of all heirs do not consume the entire estate and there are no residuary heirs (asabah) to claim the excess, the remaining portion goes to Baitul Mal.
These funds are used for community welfare — supporting orphans, the poor, and public services. In Malaysia, this portion is administered by the relevant Islamic Religious Council (e.g., MAIS in Selangor, JAKIM federally).
When does this happen?
- • There are no male residuary heirs (asabah) to claim the excess
- • The deceased has limited heirs — e.g., only daughters, or only a spouse and parents
- • Fixed-share heirs do not fully exhaust the estate
Tip: Through proper estate planning using Hibah (lifetime gifts) and Wasiat (Islamic will), you can redirect this portion to loved ones who are not Faraid heirs — reducing the amount that goes to Baitul Mal while still fulfilling your Islamic obligations.
A Practical Example
Ahmad's Estate
Ahmad passed away leaving a wife, two sons, and one daughter. His estate is worth RM 1,000,000.
Distribution:
This ensures everyone receives their rightful share according to Islamic law, providing for the family's future while honouring Ahmad's legacy.
Key Principles of Faraid
Justice
Every heir receives their rightful share, ensuring fairness and preventing disputes.
Protection
The system protects vulnerable family members, especially women and children.
Unity
By following divine guidance, families can avoid conflicts and maintain harmony.
Frequently Asked Questions
Related Resources
Estate Planning Basics
Learn about Wasiat, Hibah, and how to create a comprehensive plan.
Family Protection
Strategies for blended families, reverts, and special needs children.
Inheritance Law in Malaysia
Dual system: Faraid for Muslims vs Distribution Act for non-Muslims.
Inheritance Law in Singapore
How AMLA governs Muslim estates in Singapore.