Islamic Wills, Trusts and Estates

Planning for this World and the Next
Erscheinungsjahr 2011
ISBN: 978-1-84374-767-3
Verlag: Euromoney

Buch, Englisch, 192 Seiten

Donative trusts are a $1 trillion plus industry, and dwarf the estimated size of the Islamic finance industry worldwide; writing a Will is mandatory for Muslims who have any assets to bequeath; the majority of Muslims living in the West have not done any estate planning. These three facts point to a vast and untapped industry and business opportunity. Covering all aspects of Shari'a succession and estate planning, along with technical details of the Shari'a mawarith (laws of succession), the book includes practical case studies and calculations showing different potential inheritance outcomes. The book also discusses, in considerable detail, aspects of Shari'a compliant will and trust drafting, as well as lifetime giving and charitable gifts, and provides useful precedent documents.

Autoren/Hrsg.

Azami, Mufti

Siddiqui, Shazad

Summers, Jo

Fachgebiete

• Wirtschaftswissenschaften Finanzsektor & Finanzdienstleistungen Finanzsektor & Finanzdienstleistungen: Allgemeines
• Geisteswissenschaften Islam & Islamische Studien Islam & Islamische Studien

Inhaltsverzeichnis

1 Introduction Continued relevance of mawarith in the modern day Timing of the Will Fundamental questions Types of Wills and absence of Wills Why does one need a Will? Tax benefits of estate planning What is generally required in a Will? Structure of a Shari'a-guided Will 2 The history of Islamic inheritance laws, and their importance in Islam Rights of inheritance The first right: enshrouding and burial The second right: payment of debts The third right: testamentary freedom over one-third The fourth right: distribution of the remaining two-thirds The problem of ownership - real life issues and solutions 3 The freely disposable third 4 The remaining two - thirds: inheritors and their share in the estate The basics The ashabul fara'id/zawil furood (obligatory primary heirs) Details of the asabat (residuary beneficiaries) Those precluded from inheritance Hajb: one inheritance precluding another, or decreasing his/her share 3 Methodology for calculating inheritance Awl: increasing the inheritance division Radd: re-distribution of outstanding inheritance share 5 Conflicts of laws The 'internationalisation' of clients Conflicts of laws The concept of domicile Distinction between moveable and immoveable assets What happens when the Will conflicts with Shari'a law? EU attempts to harmonise succession laws The status of executors Execution of Wills Mutual Wills 6 Taxation issues in conventional and Islamic inheritance The incidence of estate/inheritance tax Estate tax treaties Unilateral credit Conflicts between estate planning and Shari'a law Variations and waivers 7 Shari'a-guided Will drafting The disposable third Statement of faith in preamble Religious/family guidance in preamble Burial and legal issues How do you draft a Shari'a-guided Will? Video Wills 8 Lifetime giving (hiba) Freedom to make gifts Deathbed gifts Consent of heirs Rights of 'disappointed' heirs Lifetime waivers 9 Shari'a-guided family trusts The concept of a trust The 'trust industry' Anti-forced heirship jurisdictions Unsuccessful attempts to circumvent Shari'a law via trusts Shari'a-compliant family trust drafting Precedent family trust deed 10 Charitable giving by waqf Appendix One - The succession rights of the ashabul fara'id/zawil furood (obligatory primary heirs) The father's share The grandfather's share The uterine sibling's share The husband's share The wife's share The daughter's share The granddaughter's share The sister's share The consanguine sister's share The mother's share The grandmother's share Appendix Two - Inheritance calculations Asaba ma'al gayr Asaba calculations with heirs from Group A and Group B Awl and hajb calculations Complex inheritance calculations Dividing inheritance of the deceased amongst creditors Radd calculations Appendix Three - Precedent mutual Wills agreement Appendix Four - Precedent deed of variation Appendix Five - Islamic Wills template Appendix Six - Precedent Shari'a-compliant family trust deed Appendix Seven - Precedent charity waqf deed Glossary of terms