Thursday 10 August 2023

 

What other Islamic legacy planning tools are there other than faraid?

More than 60 percent of Singaporean Muslims do not know Islamic legacy planning tools other than faraid

According to a survey conducted by OurWakaf.SG, around 60 percent of Muslim individuals do not know about Islamic legacy planning tools other than faraid. 

"This is worrying because while the community's assets continue to increase, if there is a lack of good planning, it could cause problems later," said a spokesperson for OurWakaf.SG. Among the wealth planning instruments and Islamic legacy that were highlighted during the survey included hibah, nuzriah and wasiat (will). 

The level of understanding of the Malay/Muslim community in Singapore about legacy or property planning, including faraid law, is still not strong. Hence, in order to increase the level of awareness, a portal that shares information on legacy planning, OurWakaf.SG, was launched recently.

 

Faraid is extracted from sharia law regarding the distribution of property of a deceased Muslim to his legal heirs. 

While faraid provides a basic framework for distribution, Islam encourages individuals to create more detailed plans to cater to their family's specific needs. For example, families with adopted children, or children with special needs who may need more support after their passing, but may not be able to receive anything through asset distribution via faraid. 

"Good legacy planning allows a person to ensure that their inheritance is used more effectively, without violating the shariah. Many in our society only depend on faraid. 

"However, Islam allows a Muslim to take advantage of various other instruments, among them hibah and wasiat. In fact, the Fatwa Committee chaired by the Mufti of Singapore has ruled that CPF nominations and insurance can be considered as forms of hibah or gifts and need not strictly adhere to faraid distribution," said OurWakaf.SG’s spokesperson. 

Other than CPF and insurance nominations, other assets left behind by Singapore's Muslim community include investments, real estate, cash, jewellery, bank deposits, and vehicles. 

However, the spokesperson added, there are still many in the community who are not aware of this fatwa and thus have not made any CPF or insurance nominations. 

To address this lack of awareness, OurWakaf.SG conducts public education campaigns, including seminars on estate planning topics. 

Forum Rancangkan Akhirat, Manfaatkan Masyarakat held in February 2023

In addition, the portal also explains about making a will in Islam as well as discussing the importance of CPF and insurance nominations, including information about its main product, Wakaf Masyarakat Singapura (WMS). 

Last February, OurWakaf.SG held its first seminar to discuss estate planning topics. 

As a result of the feedback received following the seminar, many participants are still confused about the topic. 

Among them, there is a question about wills that place only biological children as distribution recipients. 

"A will like this is invalid because biological children cannot receive distribution through a will. They are beneficiaries of faraid and their rights are in the faraid distribution," said the OurWakaf.SG spokesperson.  

On the other hand, if the will is used correctly and fairly, a Muslim can ensure that those who are not included in the list of faraid beneficiaries, receive distribution from his property after his death. 

These include adopted children, parents of a different religion, or organizations that are deemed worthy of receiving a portion of their property. 

A better understanding of estate planning not only helps avoid conflicts among family members after someone's passing but also expedites the distribution process. In Singapore, those with CPF nominations can receive their share within four weeks, while the absence of nominations may prolong the process up to six months. This is because it needs to go through various legal processes, including getting a valid inheritance certificate from the Syariah Court. 

"For families with more complex situations, the process may take longer," said the spokesperson. 

To continue increasing the awareness about property planning, OurWakaf.Sg will hold a second event this year.

A Faraid Forum entitled "Kerana Harta" will be held at the Sultan Mosque Auditorium on Saturday 5 August 2023, 11am to 2pm. The forum features esteemed panellists, Deputy Mufti, Ustaz Dr Izal Mustafa Kamar and the Senior Centre Manager, PPIS Family Service Centre (West), Ms Nooraini Razak, will unravel the complexities and common misunderstandings, as well as the wisdom behind faraid laws. 

Panellists will also share various estate planning instruments – such as nominating CPF and insurance, and creating a will – besides encouraging the public to consider them. In addition to planning property for family members and their loved ones, this forum is also expected to touch on the consideration of setting aside a small amount of legacy property for the community through instruments such as WMS. For now WMS has been opened to receive pledges from the public. 

The forum will be hosted by renowned digital content producer, Sujimy Mohamad and real estate agent and lawyer, Ainon Talib. Tickets cost $10 per person and are available for purchase here.


https://muslim.sg/articles/what-other-islamic-legacy-planning-tools-are-there-other-than-faraid


What other Islamic legacy planning tools are there other than faraid? 

More than 60 percent of Singaporean Muslims do not know Islamic legacy planning tools other than faraid 
by OurWakaf.SG
OurWakaf.SG is a community driven platform to raise awareness on Islamic legacy planning tools to serve different needs of the community. With proper understanding of legacy planning, OurWakaf.SGaims to encourage Muslims to plan adequately for their loved ones, retirement and hereafter (sadaqah jariyyah)
2023-07-26 • 7 min read


No comments:

Post a Comment

  IN THE NAME OF ZIONISM. Musk Endorsement to Trump after Intrigues with Clinton and Epstein 16 Ottobre 2024 Facebook Twitter WhatsApp Email...