Islamic Estate Planning: The Law & Other Considerations
A brief overview of the inheritance rules under Islamic Law (Shari’a Law) is helpful to better understand the challenge of estate planning for Muslims. Shari’a sets out strict inheritance rules that determine how a Muslim’s estate will be divided between his or her heirs on death. In Islam, after a person is deceased, his/her property will be distributed according to fixed portions or shares. Under this law, testamentary freedom is restricted to just one-third of the deceased’s net estate after deducting all debts and funeral expenses. The remaining two-thirds share is divided in accordance with Shari’a. The specific inheritance rules for this two-thirds share are dependent on the Islamic sect the deceased belongs to and the number and type of his or her surviving relatives. Accordingly, when Muslim clients seek assistance in drafting their estate plan, their first inquiry is usually whether they can have the documents prepared in a way that would allow them to comply with Shari’a law and California/U.S. probate and estate tax laws. The simple answer is yes!