Islamic Estate Administration

According to the Islamic Law of Succession, the distribution of the deceased’s estate must strictly be prioritised as follows:

 

1. Payment of funeral expenses

Funeral expenses include the costs of the kafn (shrouding cloth), grave, and all expenses directly related to the burial of the deceased, but excludes the costs of feeding guests attending at the funeral.

 

2. Payment of debts

Debts include creditors and the expenses relating to the administration of the estate.

 

3. Payment of Wasiyyah (Islamic Bequest)

A Muslim is obliged to keep a record of and declare the following (note: this document does not form part of the Will – it is a day-to-day document which must be updated on a regular basis and be accessible to the Executor/Administrator. Debts owing should also be recorded in this document.):

1. Unpaid Zakaah (Alms).
2. Unfulfilled Saum (Fasts).
3. Unfulfilled Hajj (Pilgrimage).
4. Unperformed Salaah (Prayers).
5. Unfulfilled Kaffarah (Expiation – 60 consecutive fasts as a penalty for missing or breaking a compulsory fast without a valid reason).
6. Undischarged Vows/Oaths.
7. Undischarged Qurbaani (Animal Sacrifice).

The above liabilities/obligations will be paid to such persons/institutions as the Executor(s)/Administrator(s) determines to be entitled thereto.

However, the total amount payable under this clause cannot exceed thirty-three and one third percent (33⅓%) of the net value of the estate following payment of the funeral expenses and debts incurred.

(Estate Assets – Funeral Expenses [i] – Debts [ii] = Net Value of the Estate).

Following the discharge of religious liabilities/obligations, should there be a balance remaining from the thirty-three and one third percent (33⅓%) net value of the estate, bequests (free and absolute legacies) to charitable institutions or persons (who are non-heirs) may be given out of such balance e.g., leaving a sum of money to a friend.

In the event of any Wassiyah exceeding the thirty-three and one third percent (33⅓%) net value of the estate, such Wassiyah will abate proportionally (reduce in amount).

A request to Islamically identified adult heirs to discharge outstanding religious obligations amongst themselves may be requested, but is not binding on such heirs.

 

4. Distribution of the Estate Residue in Accordance with the Islamic Law of Succession

The net residue of the estate (Net Value of the Estate – 33⅓% Wassiyah limitation = Net Residue) and effects of whatsoever nature will devolve to the Islamically lawful heirs as per the Distribution Certificate issued by the relevant Muslim judicial body.

 

5. Summary of Distribution Formula on Death:

 

Deceased's Assets

less/minus

i) Payment of Funeral Expenses

less/minus

ii) Payment of Debts

less/minus

iii) Payment of Wassiyah (first pay outstanding religious liabilities/obligations then distribute assets left to non-heirs/legatees – such payments are limited to 33⅓% of the Estate)

=

iv) Net Residue of the Estate (distributed to Islamically recognised heirs as defined by the certificate obtained from a Muslim judicial body).