What is a Wasiat?

A Wasiat is a legal document that serves as a will for Muslims in Singapore, adhering to the principles of Syariah law. If you’re considering how to distribute your assets after you pass away, it’s important to think about a Wasiat as a crucial document. It provides the opportunity to designate how a portion of your estate will be distributed, although there are notable distinctions compared to a typical will.

Under Syariah law, a Wasiat allows you to distribute a maximum of one-third of your total estate to beneficiaries of your choice. The remaining two-thirds are automatically distributed to your Faraid heirs, which includes your spouse, children, parents, and sometimes siblings. This ensures that your close family members are taken care of in accordance with the principles of Syariah.

In order to prepare a Wasiat, it is necessary to meet the requirements of being at least 21 years old and mentally capable. In addition, the document must be signed by two witnesses who are not male Muslims benefiting from the Wasiat. Having a Wasiat ensures that your estate is handled in line with Syariah law, providing a sense of structure, clarity, and peace of mind.

Important Factors to Consider When Writing a Wasiat

Crafting a Wasiat requires careful attention to a series of essential steps, which must be executed flawlessly to guarantee a seamless process. Here are some important points to consider:

1. Age and Mental Capacity: It is required that individuals are at least 21 years old and possess sound mental capacity in order to draft a Wasiat. It is important to ensure that you have a complete understanding of the decisions you are making regarding your estate.

2. One important limitation to consider is that a will can only distribute up to one-third of your estate:  The remaining portion is distributed to your Faraid heirs, including your spouse, children, and parents. It is important to thoroughly evaluate the individuals you want to include in that one-third share.

3. Witnesses: The document must be signed by two witnesses, and it is important to ensure that the witnesses do not have any personal interest in your Wasiat. It is advisable to choose reliable individuals who have no direct involvement in your inheritance.

By following these steps, you can ensure that your Wasiat is legally sound and meets the requirements of Wasiat and Hibbah in Singapore.

Faraid Heirs and Wasiat

According to Syariah law, a particular group of individuals, known as Faraid heirs, have the right to receive a share of your estate. This group consists of your spouse, children, parents, and occasionally your grandchildren or siblings. It is important to note that a Wasiat can only cover one-third of your estate, as the law guarantees that your family members will receive their rightful shares.

Nevertheless, a Wasiat still provides you with the flexibility to distribute the remaining one-third of your estate to other individuals. This could be someone you know personally, an organization you support, or even a family member you don’t see often. Having a clear understanding of your Faraid heirs and their entitlements is crucial for a smooth estate planning process. This knowledge minimizes the likelihood of disputes and ensures that everyone receives their rightful share under Wasiat and Hibbah in Singapore.

What is a Hibbah?

A Hibbah is distinct from a Wasiat. While a Wasiat takes effect after your death, a Hibbah is all about giving gifts while you’re still alive. Consider it as an opportunity to generously pass on your assets to your dear ones in the present, instead of postponing the distribution until later.

The advantage of a Hibbah is that it provides you with greater control and flexibility. Unlike a Wasiat, which has specific limitations, a Hibbah enables you to freely bestow any of your assets to anyone, at your discretion. Whether you’re transferring property to your children or providing financial assistance to a friend, a Hibbah allows you to do so while ensuring it’s recognized under Syariah law.

This makes a Hibbah particularly valuable for individuals seeking to distribute their wealth while they are alive, providing them with flexibility and assurance in their estate planning journey.

When is it appropriate to utilize a Hibbah in estate planning?

An Hibbah can be a great option in various situations. Here’s a situation where it may be appropriate to utilize it:

-Generosity in the present**: If you have a desire to witness the positive impact of your wealth on your loved ones while you are still present, a **Hibbah** provides you with the opportunity to bestow assets at this moment. Whether it’s gifting property to your children or helping a family member financially, a Hibbah allows you to make these arrangements without having to wait for your Wasiat to take effect.

-By utilizing a Hibbah, you can effectively mitigate the risk of future disputes among family members: By gifting your assets now, you can ensure that you have complete control over the distribution of your belongings, making it transparent to all parties involved.

– If you have non-Faraid beneficiaries in mind, a Hibbah can provide you with the flexibility to gift assets to individuals outside the Faraid system: This could include friends, distant relatives, or even charities. This guarantees that your desires are respected while maintaining compliance with Syariah law.

A Hibbah is a crucial instrument in estate planning under Wasiat and Hibbah in Singapore, allowing you to have control over the distribution of your assets in accordance with Syariah principles.