Islamic Estate Planning
(Why you should use Islamic Estate Planning Services)
Islamic Wills Trust Services offer comprehensive estate planning services accordance with Islamic law (Sharia) that can help Muslims organize and arrange their affairs, property, charitable, family, and other business matters in a way that it clearly reflects the values that they would want to transfer and see in their next generations.
“It is decreed for you: when death approaches any of you and he is leaving wealth, to make a testament in favor of the parents and the closer relatives, fairly and correctly a duty upon the righteous ones” (Qur’an 2:180)
Basic Estate Planning includes for each client
Islamic Wills (last wills and testaments)
Advance Medical Health Care /Living Wills
Durable Financial Power of Attorney
Advance Comprehensive Estate Planning includes for each client
Islamic Will (last wills and Testaments/ pour-over will)
Advance Medical Health Care /Living Wills
Durable Financial Power of Attorney
Living Revocable Trust
Foundation of the Islamic law of inheritance
The economic philosophy of Islam is based on the concept of social justice. In order to meet its ideal of socioeconomic justice, Islam imposes social rights over personal wealth in the following major ways:
1. It condemns the concentration of wealth in the hands of the few.
2. It ensures the fair and equitable distribution of wealth through Zakat.
3. It promises great rewards for giving to charity voluntarily.
4. It gives control over and distribution of a maximum of 1/3 of wealth to individuals and charitable
organizations through Wasiyyah.
5. It legislates inheritance law for the distribution of wealth to heirs.
Islamic inheritance is a field of Fiqh (Islamic jurisprudence), a topic that is prominently dealt with in the Qur’an. It is often called Mirath, and its branch of Islamic law is technically known as Ilm al-Faraid. It deals with the distribution of the estate of a deceased person among his/her heirs as commanded by ALLAH in the Qur’an, according to the Sunnah of the Prophet (peace be upon him) and the consensus of Companions and great scholars. Muslims must abide by this command in all circumstances. Since ALLAH has decided upon the rights of inheritance, we need no reasoning or explanation because, for a Muslim, it is sufficient to know that ALLAH has decreed it.
There are many ways for Muslims to practice their religion in North America, and one way is by drafting a will that adheres to Islamic law. Due to the emphasis on individual rights found within these countries’ legal systems (U S & Canada), observant individuals can do so without breaking any laws when it comes to making decisions concerning the distribution of wealth after death or becoming religious bridegrooms at earlier ages than what would otherwise be allowed under ordinary circumstances
Islamic law can sometimes conflict with state laws, but this is usually resolved through proper drafting of the will. Some conflicts arise from First Amendment issues and public policy considerations which must be addressed in order for Islamic principles to remain fully intact under United States law; these issues may require additional documents or legal proceedings if they come up during inheritance trials later on down the line – so it’s best practice beforehand not only do you prepare thoroughly!
Muslims in the United States have a duty to plan for their future. This includes making sure that all financial responsibilities are taken care of and nobody will be left unhappy after they pass away, which can cause pain not only on an emotional level but also financially as well if there’s no preparation done ahead of time with Islamic estate planning tools such as wills or trusts
-especially because many Americans don’t know what those terms mean!
Muslim families in America have a duty to plan for their future, and Islamic wills trust services can help them fulfill this responsibility. Our goal is always that our clients are happy with the way we guided them through understanding Islam’s laws on inheritance so they don’t experience any pain or heartache upon dying when it comes time to distribute property after all debts affecting those closest will be paid off by relatives who want what’s best going forward without having conflict within your loved ones’ lives because you didn’t know exactly how things Would work out beforehand
Islamic Estate Planning is an important step in ensuring that you and your loved ones are prepared for the future. It helps to keep family members together during difficult times, while also uniting them towards their faith. To help guide this process we will be there at every step of drafting a clear plan with detailed instructions on what needs to be done at each stage, so no one has to worry about legal perspectives or Islamic inheritance law as it’s taken care of from all angles!
Islamic Wills (last Will and Testament)
A growing number of Muslims are beginning to realize that the distribution of their estate in accordance with Islamic law will be valid only if they leave an Islamic Will that complies both with the Islamic law of inheritance and state laws.
With an Islamic will, you can avoid unnecessary family disputes, making a will is far cheaper and can avoid a financial headache for your family. Generally, it takes a shorter time and reduced legal fees to settle an estate with a valid will.
Your valid will prevents the law of intestacy and the court from assigning an executor and guarding your minor children and deciding the distribution of your estate, the tight of disposing of your estate according to your own religious requirements can be exercised only by making a valid Islamic Will.
Writing an Islamic will also provide a secondary benefit to you and your family: an up-to-date record is kept of your assets and debts for the calculation of your Zakat every year. It will be a great help later to your executor, who will need a list of your assets and liabilities.
An Islamic will that complies both with the Islamic law of inheritance and the state law will guarantee the distribution of our wealth as well as ensure that the custody of your minor children is given to the Muslim guardian appointed in your will.
A legal way to bind your will and provide guaranteed protections
1. Protect Yourself
Your Islamic Will ensures your wealth is distributed in accordance with the Islamic law of inheritance. For that purpose, your trustworthy friend or relative who is appointed as the executor of our will can deal with and fulfill your last obligations.
2. Protect your Family
Your Islamic will ensure your family receives their “legal Islamic share” according to the Islamic law of inheritance without the hassle or costs of the probate court deciding for you.
3. Protect your children
Your Islamic will allows you to appoint a guardian for our children under 18 years of age. No one loves their children more than the parents, and if there is no valid will and last testament, the state probate court will decide who should care for minor children (it may be a non-Muslim guardian). You can choose a Muslim guardian for your children in your will and make sure they’re looked after by someone you trust.
4. Protect your Obligations
Your Islamic Will includes provisions for the payment of debts and outstanding religious obligations such as unpaid Mahr (obligatory gift to wife), unpaid Zakat (compulsory charity), unperformed Hajj, Fidya (compensation for missed fasts in Ramadan), and Kuffarah (compensation for omitted acts of worship).
5. Protect your future
Your Islamic will allows you to take up to 1/3 of your wealth for a bequest, investing it in Sadaqah Jariya, a charity that continues to be rewarded after death. The distribution of 1/3 of the estate is for those who are not entitled to any share, such as distant relatives, non-relatives, non-Muslims, and individuals and organizations engaged in charitable work.
What will happen if you Don’t have a will?
If a Muslim dies intestate (a person who dies without a valid will), the state laws of intestacy in the U.S. will be applied – which do not utilize the same criteria as those applied under the Islamic law of inheritance. Specifically: Under state law, your wealth will be distributed to certain relatives according to predefined rules. These are not necessarily the same as those laid down by the Islamic law of inheritance. If there are no such relatives, then your wealth will go, most likely, to a non-Muslim charity selected by the probate court.
The probate court will appoint a person to administer your estate who will settle claims against your estate. The probate court procedures can become very time-consuming and expensive. The court will appoint an administrator and may approve hefty fees (sometimes between 5-15% of the total value of your estate).
Your minor children may be placed in non-Muslim homes especially if you have no surviving close relatives. The court-appointed guardian will take as much as 25% in fees from your estate.
The settlement of the estate may be delayed. If relatives cannot be located, “Uncle Sam” becomes your relative the government takes all the estate, or it is given to a non-Muslim charity.
The revocable living trust is the best solution to comply with Islamic as well as state laws. The trust should be the beneficiary of all your assets. This will avoid the probate court. However, you must indicate in the trust documents that after your death, the assets shall be calculated and distributed as per the Islamic law of inheritance.
A trust is a common legal entity created to hold and manage assets on behalf of named beneficiaries. The trust’s creator (called a grantor) may be the beneficiary, or the grantor may name others to receive the assets. When a grantor puts assets into a trust, the trust—not the grantor—owns those assets. This effectively removes them from the grantor’s estate.
Trusts are versatile. An individual can set up a trust during life (a living trust or inter vivos trust) or through a will at death (a testamentary trust). Trusts can be revocable or irrevocable. They can meet important needs when it comes to planning for minor children, spendthrift heirs, retirement, tax minimization, or gifts to charity.
Revocable vs. Irrevocable Trust
A revocable trust provides flexibility. It gives the grantor the freedom to change trust provisions or to sell, spend or give away trust assets. The grantor can instruct an attorney to prepare a written amendment to the trust at any time without tax or other penalties. In addition, the grantor can revoke the trust entirely at any time and reclaim outright ownership of the trust property. This provides added security for individuals who are concerned about not having access to assets in case of a future emergency.
An irrevocable trust, of course, requires the grantor to give up all control of the assets, with no opportunity to make changes in the future. Assets transferred to the trust are treated like a gift and are subject to the federal gift tax. In exchange, the grantor receives an exemption from federal estate taxes. This works out well for grantors who wish to give assets to children or grandchildren while minimizing estate taxes.
Durable Financial Power of Attorney
A durable power of attorney (POA) is a legal step that names the most trusted person as your legal surrogate. This could be your spouse if he/she is capable of performing the duties, or it could be an adult child. It doesn’t have to be a licensed attorney.
The originator of the POA gives another person called the “attorney in fact” the power to act on his/her behalf. The originator of the POA is called the principal. The POA document spells out what authority the attorney in fact has over the affairs of the principal. It can be as narrow or as broad as the principal wants. When used in estate planning, the idea is to give the attorney in fact enough power to make financial decisions that will keep the principal’s assets in order if he becomes incapacitated, the POA begins immediately so there’s no delay in waiting for court proceedings.
Should you have a stroke or some other incapacitating illness or condition, your attorney in fact can step in to manage your financial affairs and see that those matters are attended to in your best interest.
This is not something you want to get at the office supply store or online and fill in the blanks you are giving someone significant power to act on your behalf, and some thought and cares into how that’s structured requires an attorney’s advice.
A durable power of attorney begins the minute you originate it. This means your attorney in fact can act on your behalf even before you are incapacitated. This is why you must choose your attorney in fact with great care and pick someone you trust completely.
Advance Healthcare Directive
What is an advanced healthcare directive? Advance healthcare directives are the authorized bodies such as Mental Health Powers of Attorney, Living Wills, Health Care Powers of Attorney, or HIPAA Authorizations that permits your selected and named helpers to make decisions for your mental health when you can not make any decision or unable to do so due to your mental health (God forbids) and set forth your wishes regarding end-of-life decisions, and provide access your protected health care information. Health can be affected by any unforeseen issues, we at Islamic Will Trust aim to guide you on how you can work around advanced healthcare planning.
A living will bear no relation to a conventional last will and is not used to leave the property at death. A living will is a document that allows you to state what type of medical treatment you do or do not wish to receive should you be too ill or injured to communicate your wishes, it may also be referred to as an advance healthcare directive or declaration.
Your Islamic living will/ advance healthcare directive will direct that your body is not subjected to embalmment, unnecessary postmortem examination, or unnecessary transporting to a foreign country. Your will states that you wish to have a Muslim funeral and burial.
- Appoints someone to make healthcare decisions on behalf of the principal.
- Incapacity may cause it to spring (become effective).
- Continues to function even if the principal is incapacitated. After the principal passes away it dictates the burial wishes and requirements.
- A living will establish the medical situations in which the maker no longer wants life-sustaining treatment.
- It must be drafted in accordance with the formal requirements specified by state statute.
- It covers only a narrow range of situations; it usually applies only to terminal patients.
- It does not appoint a surrogate decision-maker; rather, it informs physicians of decisions the patient has already made regarding certain life-sustaining treatments.
- It may create problems that arise from vagueness or ambiguities in drafting.
Schedule your free consultation in our offices in Maryland and Virginia or in your house or online. We’re also available to meet on weekends and after working hours. You may schedule your consultation by calling us at 855-559-4557 or by emailing us at email@example.com. Appointments are typically scheduled two weeks in advance.