LEGACY SOLUTIONS

Shariyah Will

The Lighthouse Shariyah Will (LSW) is designed for persons needing to arrange their affairs within the scope of Islamic Law (Faraid). The LSW can also cater for Muslims with non-Muslim heirs (Wasiyyah).

The LSW is prepared by an experienced and qualified Muslim will-writer. The LSW simplifies your planning arrangements and associated costs. Upon your death, the LSW will enable probate to be completed much more quickly, reduce estate administration costs, and expedite the distribution of your estate.

The LSW can be amended or revoked at any time whilst you are alive. Lighthouse provides each client with confidential storage facilities for one original copy of your LSW. That way, if your personal copies are lost or destroyed it is not the end of the World.

The LSW is not a tax planning tool. Its sole purpose is to execute your legal wishes as quickly and as cost-efficiently as possible in the event of your death, and do so within the strictures of Islamic Law. The proceeds from your estate will therefore be subject to the taxes, and laws in the jurisdictions where you hold assets, and to Baitul Mal (the Muslim Treasury) where applicable.

For tax planning purposes, we have the Lighthouse Succession Trust (LST) available to manage and mitigate more complex needs. Please contact your Lighthouse Adviser to discuss further.

Wasiyyah
According to Islamic Law, a Muslim has the freedom to bequeath only 1/3^rd of his net assets. To exercise this freedom, you will need to write a Wasiyyah, particularly if you wish to gift parts of your estate to non-Muslims; or other persons not deemed immediate family (e.g. illegitimate or adopted children); charities or friends. The remaining 2/3^rds must be shared across your immediate Muslim family and will follow Faraid. Where you have no immediate Muslim family, this share of your estate would pass to the Muslim Treasury. Should you die intestate, your estate will be distributed solely in accordance with Faraid.

Faraid
Under Islamic Law, only Muslims may inherit from a Muslim. Any beneficiaries that are non Muslim cannot inherit from you (except via Wasiyyah). Faraid clearly defines who can and cannot inherit, and to what degree each is entitled to benefit. In simple terms, Faraid provides the structural formula to divide a deceased Muslim'sestate in accordance with the Islamic Law of Inheritance. Your ‘immediate family' such as spouse, parents and legitimate children, can never be excluded as heirs, provided they are Muslim.

Beneficiaries Under Faraid
How a Muslim estate is to be divided would depend on the family structure of the deceased. Faraid considers the related proximity of all the heirs in relation to the deceased, and whether the heir is male or female. For example, if a male deceased has no surviving Muslim male heirs, his surviving daughter(s) will share 2/3^rds; his wife receives 1/8^th;and the balance either passes to his siblings or Baitul Mal (Muslim Treasury).

Where the deceased is male and has surviving Muslim male heirs (father, sons, and grand-children); these family members shall inherit together with the wife in accordance with their respective entitlement. Male legal heirs can be entitled to a share together with immediate female heirs depending on their’ proximity' to the deceased. Where the deceased is a married female, her husband would receive ½ of the estate if there are no children, or ¼ if there was. The balance is then divided between Muslim family members according to proximity, with the size of each share determined by being male or female.

It is important to note that the division of an estate under Islamic Law is different almost every time due to the difference of the family structure. Heirs are specifically identified under Faraid. Grand-children, for example, are not automatically regarded as heirs and would benefit only under certain circumstances. Those not regarded as heirs in Islam include adopted children, step children, illegitimate children and foster parents.

Children
For dependent children, and should both parents die; custody is awarded in accordance to Muslim maternal hierarchy: the maternal grandmother, the paternal grandmother, the Full Sister and so on as stipulated under the Syariah. In cases of dispute, the Shariyah Court will appoint custody in its wisdom.

The custody of a child and a child's inheritance are often dealt with separately. A guardian (usually male) will often be appointed to take responsibility for this inheritance, and is entitled to reasonably dispose of assets on account of his ward as he deems appropriate. A Lineal Guardian (father or grandfather) is also at liberty to transfer guardianship for the purposes of marriage.

Assets and liabilities
In the event of your death, your assets (and usually joint assets) are frozen because title and interest in these assets is no longer clear and immutable. Debts and liabilities pass to your estate and interestwill continue to accrue. The bank or credit company is entitled to freeze supplementary credit facilities (credit cards), or even foreclose on an asset. How your assets are released, and how quickly depend much upon whether you have a Will or not, and whether any dispute arises between beneficiaries.

When you die...
Where you have a valid Will (Wasiyyah)your chosen Executor will need to appoint a lawyer for each jurisdiction where you hold assets and apply to those Courts for a Grant of Probate (GP).

If you do not have a valid Will (non wasiyyah) all your beneficiaries will first have to agree unanimously on appointing an Administrator, if they can. It is not unusual after many years of impasse, for the Shariyah Court to decide who is appointed as Administrator. Once appointed the Administrator will now need to appoint a lawyer for each jurisdiction where you hold assets and apply to those Courts for Letters of Administration (LA) which in itself can often take 2-5 years, especially if dispute exists.

Once the Executor has completed GP or LA in each jurisdiction you hold assets, your estate documentation can now pass before the Civil Court for them to approve distribution once all taxes, debts and legal bills have been paid. Your net estate can now be distributed to your beneficiaries under Faraid and Wasiyyah.

Important Notes

The information herein is based on our understanding of current common and general law, International testate conventions, Islamic Law, and the principles and practices prevailing in most jurisdictions around the world; and will be subject to, and affected by future changes in legislation in each jurisdiction. Therefore the LSW cannot be, or be expected to be, guaranteed to be accepted in all legal jurisdictions

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