What is an Islamic Will?
A will is a legally-binding document that states how your assets should be distributed in the event of your death. In a non-Islamic will, you simply leave what you want to anyone of your choosing.
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In Islam, however, it is pre-determined who inherits our assets (read the early verses of Surah an-Nisa (chapter 4) for the verses on this).
In a non-Muslim country, you will need to create a will that sets out exactly what you want to happen in great detail, otherwise domestic laws will revert back to their own laws and not the laws of Islam in the absence of a will.
As long as you state clearly your wishes, English law or any other domestic law, will not come into effect.
Will Unite
We often get asked what should be included in a will and here are a few suggestions of what they usually detail:
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Who will be your executor;
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Who would be the legal guardians of your children if you and your spouse die;
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The gifts you want to give to named beneficiaries or trust;
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How your estate should be distributed;
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Your funeral arrangement and burial wishes;
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What services do we provide?
Our Islamic Wills have been authenticated by Shaykh, an Imam and a specialist Sharia scholar in the Fiqh of Islamic Inheritance.
We at WillUnite are experts in this field. Our Islamic will solicitors can explain the tax liability should you have a basic Islamic Will and offer advice on what trust planning you might require to utilise all available reliefs and bands.
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We have been awarded a tender with the East London Mosque and London Muslim Centre to provide Islamic Wills to their members to assist them in fulfilling their Islamic duty. This huge honour demonstrates the trust and knowledge our team holds, we pride ourselves on making our clients’ needs at the forefront of everything we do and will work closely with you to ensure you receive the very best advice and care available.
How to Write a Sharia Will / Islamic Will?
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Under a Sharia will, at least two-thirds of a Muslim’s estate must be distributed among surviving relatives in the event of their death. One-third can be bequeathed to anyone of your choosing who is not entitled to a fixed share, such as a charity.
The individual may also wish to leave a Sadaqah Jariyah, a type of perpetual charitable giving in the cause of ALLAH SWT, a virtuous act designed to provide rewards in the afterlife.
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Whilst Islam outlines the key components of a Muslim’s will, under an Islamic Will, Muslim could:
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Decide your funeral and burial arrangement and leave your funeral wishes
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Decide what to leave to whom
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Appoint your executors
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Appoint the guardians and make provisions for your children
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Specify the charities you want to support
Also, if you are writing a Sharia will, we suggest considering:
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You need to value your assets
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You need to keep your will up to date
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You need to keep your will safe
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You could protect your estate for vulnerable family members
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If you own a business and it’s qualified for Business quality relief, extra IHT savings could be obtained
Distribution
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The Quran states that you can leave up to â…“ of your estate to the less fortunate or a charity of your choice. It also states that a Muslim should provide their heir with their rightful inheritance. Our Islamic will solicitors can support you in every facet of the will writing process, ensuring it is both Sharia and English law complicit.
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Inheritance Tax and Inheritors
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Inheritance Tax is a 40% tax added on to your taxable assets at the date of your death. You have two Nil Rate Bands before paying tax. Anything you pass to a spouse is free of tax and you can pass any unused parts of your Nil Rate Bands to them.
An Islamic Will, however, distributes in fixed shares, not allowing a Muslim to fully benefit from these tax advantages. This could mean an estate has to pay much more tax than if they had a standard UK Will, with everything passing to the spouse.
An Islamic Will with a life interest may provide more tax advantages. Our team of experts can advise you on how to strategically document your wishes so your will is written in accordance with both Sharia and UK law, helping you make the most of the tax advantages available.
It’s important to ensure you document your wishes correctly from domestic law and Islamic law perspectives, it is always advisable to speak with an Islamic will writing specialist.
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The Rules of Bequest
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What are bequests?
Under Islamic law, your estate gets divided up in a particular way. An Islamic will differs from a standard will in one other crucial respect.
Islam provides you the freedom to do what you would like with up to a maximum of 1/3 of your estate. Islamic rules about who gets what can apply to all of your assets if you want them to, but you are also permitted to have them apply to only 2/3 of your estate.
The remaining 1/3 (known as bequest) can be distributed as you wish, subject to the below:
The rules are quite simple.
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Any assets you leave must be specific (e.g. a piece of jewelry, a car, 1/3 of my assets left to a charity);
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Anything you leave must be, in total, a maximum of 1/3 of your entire estate. For example, if your estate is worth £100,000 and you left a ring, a car, and a gold coin which were collectively worth £5,000 (i.e. 5% of your estate) then that is fine.
Some Hanafis like to leave a certain portion of their wealth as a kaffarah (compensation payment) for any missed fasts and prayers. All of your stipulations need to be carefully drafted so your will is in accordance with both Sharia and English law, speak to one of our team members who can support you in detailing your Bequest wishes in a concise, legally binding manner.