Be Humble

Be humble, the stock market is probably smarter than you.

Overconfidence might help secure a job promotion or the attention of another at a nightclub,

but in the stock market, it can be disastrous.

When considering investment decision, think about the other millions of other investors out there and ask

yourself do I really have an edge?

Interesting thought...

Harta Sepencarian

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

Wasiat...Must We Have One?

وَلْيَخْشَ الَّذِينَ لَوْ تَرَكُواْ مِنْ خَلْفِهِمْ ذُرِّيَّةً ضِعَافًا خَافُواْ عَلَيْهِمْ فَلْيَتَّقُوا اللّهَ وَلْيَقُولُواْ قَوْلاً سَدِي

Let those (disposing of an estate) have the same fear in their minds as they would have for their own if they had left a helpless family behind: Let them fear God, and speak words of appropriate (comfort).

Dan hendaklah takut kepada Allah orang-orang yang seandainya meninggalkan dibelakang mereka anak-anak yang lemah, yang mereka khawatir terhadap (kesejahteraan) mereka. Oleh sebab itu hendaklah mereka bertakwa kepada Allah dan hendaklah mereka mengucapkan perkataan yang benar.

Surah An Nisaa' [ 4.9 ]

Winding Up a Muslim Estate

We provided a general perspective on the need for IEP and covered areas of living trust, wasiat, harta sepencarian, wakaf, executorship and estate administration. However, such explanations only go so far as to provide Muslims with possible alternatives to faraid for consideration. They do not address the practical aspects taht go into winding up a Muslim estate, whether they embrace the alternatives discussed or not.

In relation to winding up estate, lawyers or trust companies for that matter, are merely facilitators. Lawyers or trust companies can only act on information and supporting documents furnished to them. Following is a common but non-exhaustive documents that are required for winding up a deceased 's estate:

• Original and extract death certificates of the deceased;
• The extract is submitted to the relevantMahkamah Syariah to apply for a Sijil Faraid;
• Information on the deceased's parents and grandparents must be ascertained with death certificates;
• List of surviving heirs, copies of their Identity Cards or birth certificates;
• Copy of deceased's Marriage Certificate, if applicable;
• List of assets,with copies of evidence over same such as land titles, bank account book;
• List of liabilities with copies of evidence over same, if any;
• valuation report on all immovable properties belonging to the deceased;
• Wasiat or trust deed executed by the deceased.
  

It is equally important for us to prepare and organise worldly affairs so that when death occurs, our surviving heirs are not burdened or overwhelmed.

Source: SmartInvestor Magazine, August 2006 by Jasmin Jamaluddin of AsSalihin Trustee Bhd

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 :

• 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.
  

It is encourage all not just meticulously plan their individual selves but to integrate the practical, financial and consequential well-being of their loved ones even if they are no longer around.

Source : SmartInverstor magazine, June 2006 by Jasmin Jamaluddin of As-Salihin Trustee Bhd.