The Impact of It to Banking Industry

Topics: Islam, Trust law, Inheritance, Muhammad / Pages: 11 (2515 words) / Published: Feb 5th, 2013
1.0 Introduction

As part of their lives, individuals are engaged in generating wealth and using this for their own prosperity.The management of this created wealth is an important issue, as individuals are expected to also manage their lives with this wealth. It is the concern of this study to investigate how wealth is perceived by wassiyah method and how it is distributed by individuals in the form of inheritance. Islamic theory of wealth provides useful guidelines in relation to wealth ownership, wealth management and financial planning. The notions of wealth in Islam are based on philosophic foundations derived from two primary sources namely Al-Quran, and Hadith, the sayings of the Prophet of Islam. The whole conceptualization of wealth and its use must therefore be consistent with Shariah or the Islamic Jurisprudence. In a simple description, there is no restriction for Muslims to transfer their property while they are alive, but upon the death, the estate transfer is automatically subject to faraid and bequest mandatory rules. Faraid has pre-determined the number of shares which eligible heirs should get after deducting burial expenses, debts to Allah and other people, the rights of spouse to mutually acquired property, incomplete life-time transfers and bequest. Due to this, for Malaysian Muslims, leaving a wasiyyah (will) is a crucial part of the Islamic estate planning, as the problem of estate in Malaysia is the most common problem cited in the literature as a result of not leaving a wasiyyah. These unclaimed assets are wastage as they cannot be utilized for economic purposes. Other relevant problems are those such as family disputes, information regarding assets and liabilities not being easily accessible, fraud, and problems related to the nominees. (Alma’Amun,2010)

2.0 Research Problem
Islamic estate planning is almost totally neglected by Muslims in general and in Malaysia particularly. Today, in a modern and complex world,

References: Alma’Amun.S (2010). “Islamic Estate Planning: Analysing The Malaysian Perceptions On Wasiyyah (Will) And Bequest Practices”. Muda M. Z; Yusof, W. and Zakaria, Z. (2006). “Konsep Harta dan Kepentingan Pengurusannya Menurut Perspektif Islam” (The Concept of Wealth and The Altfest, L. W. (2007). Personal Financial Planning. New York: McGraw-Hill Irwin. Al-Khin, M.; Al-Bugho, M. and Asy-Syarbaji, A. (2005). Kitab Fikah Mazhab Syafie (The Book of Fiqh of the Shafi‟i School) Access Date: 16th May, 2007.

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