Create Your Free Islamic Will

Estate Planning is the process of creating a plan to:

1) Control your assets while you are alive and well
2) Care for yourself and your loved ones in the event of incapacity
3) Give what you own to those who you want upon your death in a tax-efficient, cost-effective, and well-organized manner

We hear that a lot. People think estate planning is something only the rich or elderly should do. But in reality, your “estate” is simply a fancy way of saying “your stuff.” It’s everything you own subtracted by everything you owe.

Muslims believe that wealth is a trust from Allah. Just like we have obligations and restrictions on how we can earn and spend our wealth, we also don’t have unlimited discretion to dispose of it after our death. The Prophet Muhammad SAW is reported to have said a believer should not let two nights pass without preparing a written will (or estate plan as we known it). Under the Islamic Law of Inheritance—which is the default system of inheritance for Muslims in most Muslim-majority countries as well as in countries with historically large Muslim minorities—a Muslim’s assets must be distributed based upon certain rules laid out in the Quran, the Muslim holy scripture, and the Hadith, the normative traditions of the Prophet Muhammad.

In the United States, people are typically free to leave whatever they want to whomever they want after they die, with the exception of a surviving spouse, whose share is protected under most state laws, so long as they prepare a legally valid estate plan before their death. Thus, absent a challenge by the surviving spouse, a court will likely uphold a properly executed will and honor the decedent’s wishes. But if you’re concerned, keep reading for a better solution to this potential problem.

Most people have heard of a will. Your will accomplishes three primary objectives: (1) names individuals (or charitable organizations) who will receive your assets after your death, either by outright gift or in a trust; (2) nominates an executor who will be appointed and supervised by the probate court to manage your estate; pay your debts, expenses and taxes; and distribute your estate according to the instructions in your will; (3) include nominations of guardians for minor children. If nothing else, the third benefit is enough reason for every Muslim with children in the United States to prepare a will.

There is no catch. We want to ensure that every American Muslim should, at a minimum, have a basic legally valid will in place to protect their family. That’s what our free automated tool provides.

Yes, several in fact, which people often don’t realize. First off, a will does not control the disposition of any jointly owned assets (your home or joint bank accounts, for instance) or assets that already have beneficiary designations (life insurance policies or retirement accounts). Those assets automatically pass, as a matter of law, to the joint-owner or beneficiary. While that may not seem concerning at first blush, it’s important to note that it likely won’t be consistent with the Islamic rules of Inheritance. Second, wills have to go through the probate process which can be expensive, time-consuming, and open to the public.

Yes, in most cases, a living trust is superior to a will. A trust functions similarly to a will, but in most cases, is far more effective. With a revocable living trust, your assets are put into the trust, administered for your benefit during your lifetime and transferred to your beneficiaries when you die — all without the need for court involvement. Thus a well-drafted and fully-funded trust avoids the need for an unnecessary probate proceeding and allows for efficient and private estate administration after your passing. In addition, a trust is a highly effective tool for incapacity planning.

Islamic estate planning implicates not only a client’s physical assets, but also her very body and life. Like other religions, Islam provides guidelines with respect to end-of-life planning, organ donations, funeral instructions, and disposition of a decedent’s body, which come into play when developing a Muslim client’s advance health care directives. The failure to have an advance directive in place may, unfortunately, result in an emotional dispute between loved ones regarding your treatment, or even worse, a prolonged and divisive court battle.

No, this basic will does not constitute legal advice and does not establish an attorney-client relationship with our law firm.

If you need a customized solution our Islamic estate planning attorneys can assist you. Contact us today.