Updated: Jun 30, 2023
Islamic inheritance law forms the foundation for Islamic Wills or Trust you create. Unfortunately, many people choose to write in their estate plan that includes one of the five options below. However, This can work for Muslim majority countries but not where the Muslims is a minority due to many reasons, including the inheritance laws of Muslim minority countries (such as Canada, USA, United Kingdom, Australia, India, China, or any other similar) are different from Muslim Sharia law. Also, sometimes the applicability of Shariah law is restricted. Click here to learn about Islamic Inheritance law. There are six options utilized regarding Islamic inheritance appendix by attorneys and online Wills or Trusts that include the inclusion of (1) a definite share of the inheritance, (2) Leaving duties for an executor or Trustee to figure out inheritance shares, (3) Include 5-50 pages of Mawarith schedule, (4) Do not include Inheritance distribution appendix or information but spell as "distribute assets as per Islamic Inheritance law", (5) Do not distribute assets as per Islamic Inheritance law but as per your own wishes, and (6) A systematic way of showing shares distribution in Appendix form not exceeding two pages.
For your information, please find below all options used by attorneys or online Islamic estate planning providers. As the owner of the wealth, it's important that you understand the different options utilized and how they impact your estate planning and spiritual goals.
Creating an estate plan that incorporates the definite shares of inheritance: This format includes the Table with inheritance shares to be distributed based on the current situation that is simple and crisp, clearly showing the inheritance distribution. It is one of the preferred ways of drafting a Will or Trust in the light of Legality and Court expectations because it specifies who gets what. However, You would have to update your Will every time there is any change in your family and relatives, i.e., Newborn, death, etc. For example, if your Father dies, your Grandfather will be eligible, and so, the inheritance share needs modification. If both Husband and Wife die, then this Table needs to be updated. So, in short, it is challenging to keep in compliance with Shariah. Wassiyyah provides a customized Islamic inheritance appendix that is principles-based (rather than computer software codes) that is interpretable in legal court if needed during probate. On the contrary (as explained), many online service providers write the actual inheritance shares (calculated automatically through software during the creation process) in Islamic Will and Trust. This approach poses compliance issues Islamically as writing the inheritance share prior death, which becomes the gifts after death (instead of Inheritance). Also, the share calculated and written in the Islamic Wills and Trusts may differ after death and becomes worthless. Most attorneys and Islamic scholars disagree with this approach, but this is how online Will providers observe, unfortunately. This method is incorrect in five ways;
The inheritance share will change after the Testator or Grantor's death, which weakens the estate planning document.
Writing a fixed inheritance share in the estate plan cannot be an inheritance but a gift which is the view of prominent Islamic scholars (See Islamic ruling Ref. (4) for more information).
Suppose you give a gift in a lifetime, it must be distributed to children equally (See Bulugh al-Maram, Book 7, Hadith 928) and give them control if appropriate (See Islamic ruling Ref. (9) for more information). If that is the gift, you can not mention it in the Islamic Will or Trust.
Suppose you consider as a testamentary Bequest, then it is not allowed for fixed sharers (i.e., Spouse, Children, Grandchildren, Parents, Grandparents, Siblings as per Islamic law) from inheritance (See Sunan Ibn Majah 2714, Book 22, Hadith 20).
If this is Testamentary Bequest, it is limited to one-third (See Sunan an-Nasa'i 3634, Book 30, Hadith 24), but your entire estate turns to Bequest, which is incorrect. Fixed sharers cannot inherit bequests as mentioned. Whatever the angle you observe, this approach gives the wrong outcome. For more detailed information about Islamic ruling on this issue, click HERE. Islamic planning experts follow many strategies to provide Islamic inheritance distributions, but Wassiyyah used the most practical and compliant principle-based.
Creating an estate plan with leaving duties for an executor or trustee of an estate plan: This format includes the estate plan clauses for giving an executor or trustee the authority to provide information about how to distribute if the inheritors' distribution changed with family members' status when a Testator or Grantor dies. It is straightforward and partially preferable legal as it specifies who gets what. However, This option does not provide a better solution due to the need for an executor to update shares. Another issue with this option is, Testator or Grantor declares shares of inheritance in advance, which will most probably be wrong after death and actually not inheritance but bequest technically.
Creating an estate plan incorporating the 5-50 pages long Mawarith schedule: In this option, you will include the complete Mawarith schedule of distributing the estates per Islamic law of inheritance. The document may be very long, starting with 5 to 50 pages depending on the level of information you want to draft. Even though it is extensive and comprehensive, it may not include all possible situations and so incomplete. Another challenge is interpreting this document, which is not straightforward either.
Creating an estate plan narrates the distribution of estates as per Islamic law of Inheritance: In this option, you guide your statement in the estate plan towards Islamic law of inheritance, meaning you would mention in the Will or Trust that distribute my estates as per Law of Islamic inheritance without attaching any share or schedule. This option works only for Muslim Majority countries but not for Muslim minority countries.
Creating an estate plan narrates the distribution of estates as family wishes but not as per Islamic law of Inheritance: Due to the unknown and ignorance of how the Islamic law of Inheritance can fit into the Legal frame, people choose not to mention the Islamic law of Inheritance in the Last Will. It will have non-compliance to Shariah without further delay.
One of the challenges for non-Muslim minority courts is they do not have knowledge of the Islamic law of inheritance, and they would like to see it in some form, and that's what we provide here in Option 6, which is visible and clear to their eyes that how does Islamic law work. Option 6 is not the same as Option 2 in the way we provide the details about how the calculations of share work. Option 2 does not provide details about the Islamic law of Inheritance but just the final share, which is not correct either as no one knows how their inheritor's situation looks after death.
Wassiyyah provides the principles-based Islamic inheritance appendix with Islamic Wills or Trusts, which is tangible and transparent. If needed, it is interpretable in the court with the scholar's advice. This is a fundamental difference between Wassiyyah estate planning compared to others. This option provides a systematic way of showing shares distribution in Appendix form not exceeding two pages without losing the details and compliance with the Islamic law of Inheritance. All in simple mathematical equations form interpretable by someone with a basic knowledge of mathematics.
Additionally, it has the following benefits.
It may take many pages of a book or thousands of codes if you want to learn and implement the Islamic law of Inheritance. However, we compressed it into two pages of the Appendix.
It does calculate based on different Madhab preferences.
It does calculate based on your preference of Reversion to Spouse. For example, you could calculate Radd to apply for a Spouse that is per Egyptian law or Indian Muslim personal law. And, in many other countries, Radd (i.e. proportional increment required if Total share is less than 100% and no Residuary alive ) is allowed for Spouse. All Madhab do not allow Radd (Increase) for Spouse.
It meets the legal requirement ensuring it spells your wishes for estate distributions.
It works for both Wills and Trusts.
Lastly, It complies with the Islamic law of Inheritance.
 The only drawback to this approach is the executor or trustee should be aware and have some knowledge of how this appendix functions. We provide a quick training tutorial and live view of the Inheritance Appendix that would suffice to get on board with practice.
This is copyrighted work for our team, and we will be sharing this information in the form of estate planning online tools, books, and the web app, etc. Commercial use is currently not permitted, but we will explore in the future to allow access for estate planning professionals with some exclusion rights.
Terms & Disclaimer: We are not a legal firm, and you agree to our terms and conditions. We are not liable for any damage or loss if you incur through our advice or service, and our advice or suggestions must consider as a reference only. Information provided here is copyright protected by International intellectual property laws. You can use our guidance, content, and service for your benefits but can not utilize intending to gain commercial advantage without prior written permission. We have used many third-party links for you to refer—however, We neither affiliates nor represent any services listed or links provided on our website. You can click on below to refer to the detailed Terms, conditions, and our Privacy policy.