Many Malaysian families only realise how complex estate distribution is after someone passes away — when assets are "frozen", the process drags on for years, and heirs dispute. Proper Islamic estate planning lets you plan ahead using three key instruments: hibah, wasiat (will) and faraid. This pillar guide explains each and when to use it.
Three key instruments
| Instrument | When it applies | Function |
|---|---|---|
| Hibah (gift) | During lifetime | A gift that removes an asset from the estate |
| Wasiat (will) | After death (instruction) | Bequeath up to 1/3 to non-heirs/specific causes |
| Faraid | After death | Distribution by fixed Islamic shares |
How they work together
After death, the estate is settled in order: pay debts & funeral → execute the will (1/3 cap) → the remainder is divided by faraid. Assets validly gifted (hibah) during life are not part of the faraid estate.
Note: This is general guidance, not specific legal or religious advice. For your case, consult a syariah lawyer, Amanah Raya, or a licensed hibah/wasiat provider.
Why early planning matters
- Avoid frozen assets that can take a long time to release.
- Ensure those you intend to provide for (e.g. adopted children, parents who don't fully inherit) are cared for — via hibah/wasiat.
- Reduce the risk of heir disputes.
- Protect family with takaful hibah so benefits reach them directly.
Nazim's Take
Estate planning isn't distrust of fate — it's responsibility. The Prophet ﷺ encouraged Muslims to prepare a will. Start simple: update your takaful/EPF nominations, and consider hibah for key assets.
Frequently Asked Questions
What's the difference between hibah, will and faraid?
Hibah = a lifetime gift; a will (wasiat) = an instruction of up to 1/3 to non-heirs; faraid = fixed distribution after death. The three complement each other.
Do I need a will even with faraid?
Yes, it's encouraged. A will lets you provide for those who don't inherit (e.g. adopted children, charities) up to 1/3, and appoint an executor.
Can hibah avoid faraid?
Assets validly gifted during life aren't part of faraid. But hibah conditions (including qabd) must be met for it to be valid.