Probate for Muslims

A “probate” occurs when you need a dead person’s signature to transfer the property of one person to another. Since that signature is not available you must go to court. While there is a process involved and its done by lawyers in designated courts all the time, getting this done for Muslims who want to follow the Islamic Rules of Inheritance is a different matter.
A few things to consider:

• If you are administering an estate, you are a fiduciary, which comes with legal obligations all its own.
• You must contend with the obligation to respect a faridah (obligation) of Islamic Inheritance.
• A California Statute specifically addresses how inheritance is to be distributed if an individual does not have their own plan.
• Even when a person has its own plan and it does not conform to the Islamic Rules of Inheritance, you may be following the law while committing an injustice.

There are solutions to these issues, however they rely on family cooperation and mutual understanding, as well as from obtaining good advice. We update this website regularly. Subscribe to our email list to stay up to date.

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Islamic Inheritance: Disclaimer and Assignment

When you have a probate, you have a circumstance where the decedent had the obligation to distribute assets based on the Islamic Rules of Inheritance.  In all likelihood, that obligation was not fulfilled and some sort of injustice is being done.  

It is now the obligation of the persons receiving this wealth to then distribute this wealth in accordance with the Islamic Rules of Inheritance.  Assets will pass based on the state intestacy statute or some other ill-conceived formula, family members can make it right.  Simple?  Not really.  This is true even if everyone agrees redistribution is the right thing to do.  

When you receive property, it becomes yours.  Then you give it to someone at your own direction, it becomes a gift. That gift may have tax consequences.  The term used for such a gift is an "assignment" in the inheritance context.  

Another term is "disclaimer."  This is a legal "thanks but no thanks." The property is treated as though the person making the disclaimer does not exist.  This is generally not treated as a gift by taxing authorities.  Unfortunately, in the inheritance context, particularly if you wish to direct inheritance based on the Islamic Rules of Inheritance, you are looking at an assignment. 

The lesson here, plan before your death.  If your family member is already deceased, you will need to consider the tax ramifications of getting and giving away inheritance to make sure you are following the Islamic Rules of Inheritance.  

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Guide to Islamic Inheritance up on our website

Our guide to Islamic Inheritance is now available on our website. Its lengthy, though not as lengthy as the original that we have been distributing at workshops the past several months.  I hope to make additional information on Islamic Inheritance and awqaf available to website readers and subscribers on a continuing basis.

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A look back at Estate Tax returns and a look forward to the unknown

Congress has not yet established what the estate tax will be beyond the unsustainable "Bush tax cuts."  The last year of this regime is 2010.  Of particular interest to anyone who wants to plan their estate, the tax is completely abolished that year.  In 2011 it comes back to levels seen in 2001 and touches [...]

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What is a probate?

Please visit us again as we refresh content on our website.

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