Setting up a Trust as a Muslim in Singapore: The what and why
Most of us Muslims roughly understand that when we pass away, our estate is distributed through faraid and additional wealth distribution instruments such as Hibbah and wasiat. There’s another instrument that we Muslims in Singapore should consider when thinking about our wealth planning after death – Trusts. It can be used to decide and facilitate the distribution of your assets to specific people, with specific conditions decided by you, and with no limit to the amount.
Wealth Distribution After Death Checklist: Islamic Perspective
Planning for the distribution of wealth after death is a significant aspect of Islamic teachings. Muslims follow a structured system to ensure that wealth is divided justly among heirs and beneficiaries. This system is guided by Faraid, Islamic inheritance law, but there are other tools such as Wasiat (will), Hiba (gift), and Nuzriyyah (vow) that Muslims can also use.