When planning your estate according to Islamic principles, it’s crucial to consider what elements should and should not be included in your will. There are certain items that, if included, could lead to complications, legal challenges, or even invalidate portions of your Will. To ensure a smooth transition for your heirs and compliance with both Islamic and state laws, here’s what you should leave out.
1. Jointly Owned Property
Jointly owned property typically passes directly to the surviving owner and does not go through the probate process. Including such property can confuse the distribution process. According to experts, properties labeled as “joint with right of survivorship” will automatically transfer to the co-owner. This means that the property will not form part of your estate to be distributed according to your wishes in your Islamic Will.
Additionally, Islamic principles emphasize clarity and justice in the distribution of assets to prevent potential conflicts among heirs. Including jointly owned property, which already has a predetermined path, could blur these clear line, making it harder for your administrator (the person you appoint to distribute your assets after you die) to know who gets what. This can potentially lead to disputes, upset family members, and property being taken without right.
In your MyIslamic Will Islamic Will document, we exclude long lists of property and instead encourage you to use the “Asset Inventory” document available free on our site. This keeps your assets clearly marked and acts as a starting point for your administrator to work from in determining who gets what according to the rules of your Will.
2. Retirement Accounts and Life Insurance Policies
Retirement accounts and life insurance policies have designated beneficiaries. What this means is that you name who gets the payment from those policies in the policy documents themselves; they do not form part of your estate. This is considered a lifetime gift from you to that person or persons. If you mention these documents in your Islamic Will, which can lead to conflicts as their mention would be redundant, because the beneficiary designations on these accounts take precedence over your Islamic Will. To ensure a smooth and efficient transfer of these funds directly to the intended recipients without any legal hurdles or delays, you have to do one of two things: 1) either intend that you are gifting these payouts to the named beneficiary in your lifetime, or 2) create a trust and name your trust as recipient of the funds. In scenario 1, the funds will go directly to the person name. This can be helpful if your intention is for that person to use those funds to pay for things like your funeral or to pay off an outstanding mortgage they are left with. Scenario 2 is helpful if those things are already covered, and you want the total insurance or retirement payout to pass to all of your heirs.
As a best practice, you should focus your Islamic Will on assets that require probate. This way you can ensure a clear and unambiguous distribution plan. Including items like retirement accounts and life insurance policies could potentially confuse the executor and beneficiaries, leading to unnecessary complications.
3. Humble Requests
Incorporating detailed burial (janazah) and immediate funeral wishes in your Islamic Will might delay their execution. Your Will absolutely must mention who you allow to claim your body for the funeral after your passing, and that is included in your MyWassiyah Will Document.
Detailed wishes however about time, place, etc. should be communicated directly to your family or through a separate document called a “Family Declaration” or a “Declaration of Final Wishes.” This document is not a legal document, but one that simply conveys your wishes and instructions to follow. Islamic teachings emphasize a quick and respectful janazah, making timely communication essential. Giving these instructions verbally or in a readily accessible document ensures they are followed without delay.
Moreover, specifying these wishes outside your Islamic Will ensures that they remain clear and concise. The Islamic Will should focus on the distribution of tangible assets, while a separate document can be dedicated to personal and ceremonial wishes. This prevents any mix-ups and ensures that your final rites are carried out according to your beliefs and sensitivities.
4. Assets in a Living Trust
A living trust provides a separate legal entity for asset management and distribution, bypassing the probate process. Including such assets in your Islamic Will contradicts the trust’s purpose. The living trust ensures that your designated trustees manage and distribute assets according to your stipulations, minimizing the wrangling typically associated with probate.
Assets in a living trust have a clear path for distribution, respecting your wishes while streamlining the legal process. Including them in your Islamic Will could lead to contradictory instructions and potentially undermine the trust’s integrity and purpose. Your Islamic Will should rather complement the living trust by focusing on assets not covered by it. Not everyone needs a living trust, but if you have one you want to be sure that your assets in the trust are not confused for assets outside of the trust.
5. Conditional Rewards or Punishments
Though it can be tempting to use your Islamic Will to express approval or disapproval of heirs’ actions, experts advise against using conditional bequests. Such provisions can lead to disputes and are against the spirit of fairness and harmony emphasized in Islamic teachings. The Islamic Will should aim to allocate assets impartially, fostering unity among the heirs.
Islamic inheritance law provides clear guidelines for the distribution of assets, and it’s essential to adhere to these principles when preparing your Islamic Will. Foremost among these is the understanding that you are not allowed to disinherit the inheritors named as such in the Quran and Sunnah. These divine allocations must be respected and implemented. When it comes to assets of significant value, they must be included in your Will and form part of the residual estate for distribution to all heirs. This ensures a fair allocation according to Islamic guidelines and prevents attempts to bypass the divinely ordained system.
However, for assets of nominal value that you wish to pass on to specific individuals, it’s advisable to give these as gifts during your lifetime. This approach clearly distinguishes these items from estate assets and prevents confusion or disputes among heirs. By gifting these items before death, you ensure they reach your intended recipients without complicating the estate distribution process. Adhering to these principles helps ensure that your Islamic Will aligns with religious teachings, promotes fairness, and minimizes the potential for conflicts among heirs.
6. Property Outside Your State or Country
Property located outside your home state or country can complicate the probate process. It’s advisable to handle these assets through separate legal mean, with separate wills or trusts that align with local laws and the Shariah. Dealing with international assets often requires understanding varied legal frameworks, which can be intricate and time-consuming if addressed in your Islamic Will.
By setting up separate arrangements for these properties, you can ensure smoother transitions and compliance with both local and Islamic laws. This proactive approach prevents potential legal entanglements and ensures that your heirs can seamlessly inherit these assets.
7. Personal Loans to Beneficiaries
Outstanding personal loans should be treated separately from your Islamic Will. Including these in your Islamic Will can create ambiguity and strain family relationships. Loans between family members can often lead to misunderstandings, and allowing them to be addressed within the framework of the Islamic Will can further complicate matters. If you’ve loaned money to someone that can inherit from you, they will need to pay it back to your estate after your death. To handle this, consider formal debt repayment agreements like promissory notes to handle these loans independently. This ensures transparency and fairness, preventing potential conflicts among your heirs. By delineating loans from bequests and other assets, you maintain the clarity and efficiency of asset distribution.
Planning your estate with a Islamic Will that is compliant with both Islamic teachings and state laws requires careful consideration of what to exclude. By avoiding these common pitfalls, you ensure that your final wishes are honored seamlessly, bringing peace to your family and fulfilling your religious obligations. We’ve designed our MyWassiyah Will Documents to avoid these common pitfalls and provide an affordable way to protect what you leave behind.
