Estate Planning in Islam

 Narrated by Abdullah bin Umar: Allah's Apostle

"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."  

I often tell people about how I chose estate planning as my area of focus.  I enjoyed working in estate planning but before I honed in on it as my niche, I was practicing in several different areas of law.  It was only after I realized that estate planning is an obligation for Muslims, which was years into my practice, that I decided I was going to dedicate my career to it.  

If you are like me, then you may not have known that Islam has an estate planning requirement.  Not only is estate planning an obligation, but it also gives Muslims the prescribed shares for closest family members.  Most of the rules of inheritance are found in the Quran within Surah Nissa.  In these verses, the shares for parents, children, spouses and siblings are all outlined.  Islamically, the person who passes away has an obligation to ensure that their heirs will receive the share of property they are entitled to.  

The idea is that God has entrusted us with our belongings.  While we are alive we must act in a way that is permissible in Islam and when we pass we must distribute it according to Islam.  Muslims can choose how to distribute up to ⅓  (the wassiayh) of their property upon passing.  They can use this portion to give away to almost anyone they want, except for someone who is already inheriting as an heir in the Quran.  

The order in which an estate is to be distributed is also given in the Quran.  First the funeral and last medical bills, then expenses or debts, then the wassiyah (the ⅓ described above) and then the prescribed shares given in the Quran. 

In addition to the obligation that it is on Muslims, estate planning is something that most people in America are going to need (at the very least) in order to avoid probate.  When someone passes away without an estate plan, their estate, (over a certain amount) must go through a probate process.  This is also true for someone who passes away with a will.  Probate is a court process in which fees are incurred by the estate, and heirs must wait until the process is done to get title transferred to them.  It is a burdensome and costly process that regardless of faith, most people would choose to have their family avoid if possible.  

To learn more about estate planning and if you need to plan your estate, click here to schedule your free 30 minute consultation.