Harta sepencarian is a derivative of Malay custom, conceptualized long before independence. Only properties acquired during the subsistence of a valid marriage shall fall within the ambit of harta sepencarian. Gifts and properties received through the mechanics of inheritance and EPF contributions are outside the scope.
If a Muslim man decides to take on an additional wife and such polygamous endeavour is accepted by the Syariah court, any party to the existing marriage can make an application to:
a) to require a person to pay maintenance to his existing wife or wives ; OR;
b) to order the division between the parties of the marriage of any assets acquired by them during the marriage by their joint effort.
A possible protection is a harta Sepencarian Declaration. It is a mutual declaration by the husband and his wife at itemising what each party can claim as jointly acquired property. It avoids ambiguity and gives a level of certainty and security. Ascertaining and contesting harta sepencarian at the material time can be extremely acrimonious.
Whatever the recourse one takes to protect oneself, take heed that no amount of protection can ever substitute the protection Allah gives His creation.
Source : SmartInvestor Magazine, March 2006, by Jasmin Jamaluddin of As-Salihin Trustee Bhd
Showing posts with label islamic inheritance planning. Show all posts
Showing posts with label islamic inheritance planning. Show all posts
Tuesday, 25 August 2009
Thursday, 20 August 2009
Executor and Estate Administration
Having a Wasiat can hasten the distribution of one's estate upon death. In any case, an executor or administrator needs to be appointed. A party that is entrusted to manage a testate estate is known as an Executor, whereas one that manages an intestate estate is known as an Administrator that ensure the beneficiaries' interest are fully protected and cared for.
It is always advantageous to have a trust company partake in administering one's estate or without a wasiat. Compared to appointing individuals, trust companies offer the following benefits :
Source : SmartInverstor magazine, June 2006 by Jasmin Jamaluddin of As-Salihin Trustee Bhd.
It is always advantageous to have a trust company partake in administering one's estate or without a wasiat. Compared to appointing individuals, trust companies offer the following benefits :
- Expediency : Having specialized in handling estate matters.
- Exemption from administration bond: A trust company is exempt from providing Administration Bond, which is required of individuals as security for administer estate that exceeds RM50,000
- Perpetual existence : A trust company can exist in perpetuity. A trust company can ensure continuity in the administration process until the final distribution is made.
- Accountability and impartiality : A trust company ensure that the monies bequeathed are properly managed, accounted for and distributed.
- Professionalism and competence : By appointing a trust company, the assurance of professionalism and competence in the overall administration work done, at a very competitive pricing.
- Convenience and professional service : Islamic Estate Planners can visit the customer at a time and place (within reasonable limits) of the customer' choice, to give them flexibility, privacy, comfort and peace of mind.
Source : SmartInverstor magazine, June 2006 by Jasmin Jamaluddin of As-Salihin Trustee Bhd.
Tuesday, 18 August 2009
Estate Administration: An Overlooked Subject
What is Estate Administration?
When a person passes away, the assets and debts he leaves behind are referred to as his estate. Where there is valid Will, the personal representative is referred to as the executor and where there is none, the administrator. The personal representative is responsible for locating and collecting the deceased's assets, paying off the debts and distributing the assets.
Estate administration can be an extremely tedious and difficult process. It is quite another to find out what real properties the deceased has or which private limited company he held shares in. Upon the conclusion of the estate administration, the executor is obliged to prepare a statement accounts to be given to the beneficiaries.
Upon the demise of a person, the family members are immediately faced with significant expenses. These include funeral expenses and testamentary expenses such as lawyers fees and disbursements. These expenses together with any debts of the deceased will be paid out from the assets of the estate which includes of outstanding medical bills, credit card debts, housing loan etc.
Source : SmartInvestor Magazine, June 2006 by Ong Eu Jin of OSK Trustee Bhd
When a person passes away, the assets and debts he leaves behind are referred to as his estate. Where there is valid Will, the personal representative is referred to as the executor and where there is none, the administrator. The personal representative is responsible for locating and collecting the deceased's assets, paying off the debts and distributing the assets.
Estate administration can be an extremely tedious and difficult process. It is quite another to find out what real properties the deceased has or which private limited company he held shares in. Upon the conclusion of the estate administration, the executor is obliged to prepare a statement accounts to be given to the beneficiaries.
Upon the demise of a person, the family members are immediately faced with significant expenses. These include funeral expenses and testamentary expenses such as lawyers fees and disbursements. These expenses together with any debts of the deceased will be paid out from the assets of the estate which includes of outstanding medical bills, credit card debts, housing loan etc.
Source : SmartInvestor Magazine, June 2006 by Ong Eu Jin of OSK Trustee Bhd
Islamic Estate Planning
Is it possible for a Muslim to make a will or must he or she rely completely on the mechanics of Faraid? Who has overall control over a Muslim's estate?
As a Muslim, the above questions are but some of the many possible scenarios or issues that may trouble us at some point in time. This is the essence of Islamic Estate Planning (IEP), which is to provide such assistance to those in need. IEP is seen as a noble service, helping Muslims become aware of their responsibilities to their families.
IEP can help you prepare the necessary documentation which will clarify the position of your existing assets, what is to be done with them upon your death or to see how your children is to be cared for or even ensuring that your non-Muslim family is taken care of and not just your Islamic brethren. At the very least, IEP may help foster better relationships between surviving family members.
If a person wishes to go beyond the realms of division according to Islam's holy scripture, customised but duly acceptable planning needs to be done. If one needs a stronger reason other than practical ones for IEP, the following reminder from the prophet ( peace and blessings be upon him) as recorded by At-Tirmithi might be compelling enough:
"A human being's feet will not depart from before his Lord on the day of Resurrection until he is questioned about five things:
1. His lifetime - how did he consume it?
2. His youth and body - how did he utilise them?
3. His wealth - how did he earn it?
4. His wealth - how did he spend it?
5. And what did he do in regard to what he knew?
Source : SmartInvestor Magazine, December 2005 by Jasmin Jamaluddin of As-Salihin Trustee Bhd
As a Muslim, the above questions are but some of the many possible scenarios or issues that may trouble us at some point in time. This is the essence of Islamic Estate Planning (IEP), which is to provide such assistance to those in need. IEP is seen as a noble service, helping Muslims become aware of their responsibilities to their families.
IEP can help you prepare the necessary documentation which will clarify the position of your existing assets, what is to be done with them upon your death or to see how your children is to be cared for or even ensuring that your non-Muslim family is taken care of and not just your Islamic brethren. At the very least, IEP may help foster better relationships between surviving family members.
If a person wishes to go beyond the realms of division according to Islam's holy scripture, customised but duly acceptable planning needs to be done. If one needs a stronger reason other than practical ones for IEP, the following reminder from the prophet ( peace and blessings be upon him) as recorded by At-Tirmithi might be compelling enough:
"A human being's feet will not depart from before his Lord on the day of Resurrection until he is questioned about five things:
1. His lifetime - how did he consume it?
2. His youth and body - how did he utilise them?
3. His wealth - how did he earn it?
4. His wealth - how did he spend it?
5. And what did he do in regard to what he knew?
Source : SmartInvestor Magazine, December 2005 by Jasmin Jamaluddin of As-Salihin Trustee Bhd
Thursday, 15 May 2008
What is "Wasiat"
A Wasiat is a declaration of a person made during his life time with respect to his property or benefit thereof, to be carried out for the purposes of charity or for any other purposes permissible by Islamic Law, after his death. The assets of Muslims who die without Wasiats shall be divided rigidly amongst their heirs in accordance with the Faraid, i.e. the Islamic Law of Inheritance.
Heirs are specifically identified in Islam. A spouse, parents and legitimate children (provided they are Muslims) are never excluded from a deceased’s inheritance. Grand-children, for example, are not automatically regarded as heirs and would benefit only under certain circumstances. Those not regarded as heirs in Islam include, for example, adopted children, illegitimate children and foster parents.
It is, nevertheless, enjoined in Islam, for a Muslim to write a Wasiat and to make a bequest of one-third of his assets to his loved ones , be they Muslims or not, or to charity so long as it is made in accordance with the Syariah.
Bearing in mind what the Prophet S.A.W. said, as narrated by Abdullah bin Umar that
"It is not permissible for any Muslim who has something to Will to stay for two nights without having his Last Will and Testament written and kept ready with him"
For a free consultation on wasiat and asset distribution planning, you can email us at renbridge@gmail.com and one of our associates will get in touch with you.
Heirs are specifically identified in Islam. A spouse, parents and legitimate children (provided they are Muslims) are never excluded from a deceased’s inheritance. Grand-children, for example, are not automatically regarded as heirs and would benefit only under certain circumstances. Those not regarded as heirs in Islam include, for example, adopted children, illegitimate children and foster parents.
It is, nevertheless, enjoined in Islam, for a Muslim to write a Wasiat and to make a bequest of one-third of his assets to his loved ones , be they Muslims or not, or to charity so long as it is made in accordance with the Syariah.
Bearing in mind what the Prophet S.A.W. said, as narrated by Abdullah bin Umar that
"It is not permissible for any Muslim who has something to Will to stay for two nights without having his Last Will and Testament written and kept ready with him"
For a free consultation on wasiat and asset distribution planning, you can email us at renbridge@gmail.com and one of our associates will get in touch with you.
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