Transferring assets into a trust
Question
Is it permissable to transfer all of one's assets into an "inter vivos discretionary trust", for estate and tax planning.
And if permissable, how will the Islamic law of inheritance apply.
Answer
In the Name of Allaah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
It is permissible to use the intervivos discretionary trust facility for estate and tax planning. You should add a clause in the trust stating that in the event of your demise, your estate should be distributed according to the Shari’ah laws of Inheritance and Succession. We advise to have the trust examined by a Mufti to ensure that no clause of the trust is against Shari’ah.
And Allaah Ta’aala Knows Best
Muhammed Al-Ameen Bin Moulana Ismail Akoo
Student, Darul Iftaa
Newcastle; KZN, South Africa
Checked and Approved by,
Mufti Ebrahim Desai.
- Answered by
- Muhammed Al-Ameen Bin Moulana Ismail Akoo
- Checked & approved by
- Mufti Ebrahim Desai
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