Inheritance

Steps to winding up an estate of a deceased

Q: My mother passed away and left a shariah will. I am one of the executors listed in her will. Since none if us have any experience on how to wind up an estate, please would you be able to provide a step by step guide as to what must be done in respect of an Islamic Will as well as the South African Law. We are hoping to do most of the work ourselves to keep legal costs low in sha Allah.

NB: We have her death certificate and will.

Winding up the estate of a deceased who had a running business

Q: My father passed away about 2 years ago. Following legal proceedings, his estate is almost wound up. His assets include cash, a Kruger Rand and a business that is still running. We would now like to distribute his remaining assets as per Islamic Law. He left behind his wife, 4 daughters, 1 son, and his mother. He also has 1 surviving brother and 5 sisters. Please advise on the following:

1. What fraction of the estate will each heir receive?

2. In terms of dividing the assets among the heirs: is each heir entitled to a share of the business? Or can some receive their share in cash whilst others receive a part of the business as their share?

3. If an heir who is entitled to a share of the business decides that she does not want her part of the business and would rather like to take her share of the business in monetary value, what value should be used to calculate how much she should be paid out? Should we use the current value of the business or the value of the business at the time of his death, in order to calculate the amount that she should be paid out?

NB: During these 2 years, whilst the estate was being wound up, my mother and brother have been running the business, for which they take a salary (like any other worker). Money from the business was also used for running my father's household (rent, etc.), as he would normally do whilst he was alive. The remaining profits generated during this time have remained in the business. (Please indicate if this has any bearing on the estate distribution.) 

The law of Shari'ah regarding inheritance, wasiyyats (bequests) and Islamic wills

Q:

1. What are the guidelines of Shari'ah one needs to keep in mind when distributing the inheritance of the deceased and is it compulsory for one to prepare an Islamic will in his lifetime?

2. If one did not prepare an Islamic will, then how will his inheritance be distributed among his heirs after his demise?

3. What should be included in the Islamic will?

4. Is it permissible for a person to bequeath wealth for an heir or a non-heir upon his demise?

5. How will the estate be distributed in the case where one has debts and one has also made a bequest for certain people? 

6. What types of bequests are permissible and impermissible in Shari’ah?

Family Trusts

Q: I wish to form a family trust. What are the important aspects that I should keep in mind when forming the trust?

Similarly, can you explain to me the shar’ee ruling in regard to forming a family trust and who will be regarded as the owners of the wealth included in the trust?

Renting out one's late father's house

Q: We are in the process of selling my late fathers house. We are 4 brothers and 3 sisters. We are aware what the split is under Islamic shariah law. The question is this:

The house is on the market but is not selling as the market in the UK is very volatile. I have been advised that as it’s inheritance, the house needs to be sold and each person should be given their shares. One or two brothers and sisters have indicated that we should rent the house until the market picks up. I object to this on the term that it’s inheritance and needs to be disposed of ASAP and to leave it empty and on the market until it gets sold.

Can you give me some guidance on this. There is no loan on the house and my late father was free of any debts.

Making a bequest for one's daughter in law

Q: My question to you is:

Notes to the question,

• I have two brothers and 1 sister (we in total are 4)

• Gold worth $2000.

• Written and signed on a piece of paper in presence of 2 witness (my wife's mom and I)

• No objections by brothers and sister.

Before my mom passed away, she wrote on a piece of paper that the gold worth $2000 should go to my wife when she dies (My wife's mother and I were the witness). None of my siblings knew about this and got to know after the death of my mother and haven't raised an objection. My mom gave my wife the gold because she made lot khidmat of her. What's the Islamic ruling on this?