Shariah Estate Planning
What this domain tests
This domain tests faraid, wasiyyah, hibah, waqf, nomination and the order in which an estate is distributed.
Core rules
- Distribution order: pay funeral and burial costs, debts, then valid wasiyyah, then faraid shares.
- Wasiyyah is a bequest and is generally limited to one-third of the net estate after debts. A bequest to an heir is generally not valid without the consent of the other heirs.
- Faraid shares are fixed for Quranic heirs. Residuary heirs take the balance; a son generally receives twice a daughter's share.
- Hibah is a lifetime gift and must be clear, accepted and delivered. Ambiguous hibah or a gift that retains control may be challenged.
- A nominee is often a trustee who receives and distributes; nomination does not automatically override faraid. Joint tenancy and beneficiary nominations need separate legal and Shariah review.
Worked example
A husband dies leaving a wife, one son and one daughter. After debts, the estate is RM600,000. He made a valid wasiyyah of RM60,000 to a charity, a non-heir. This is within one-third. The distributable estate is RM540,000. The wife receives 1/8 = RM67,500. The residue is RM472,500, divided 2:1: son RM315,000; daughter RM157,500. Total: RM540,000.
Traps
Letting wasiyyah exceed one-third; distributing before debts; assuming a nominee owns the asset; treating joint tenancy as automatic hibah; and ignoring zakat or unpaid debts.