Gifting Assets With The Conditon Of Retaining The Profits Accrued Therefrom
Question
A father wants to give some of his assets to his children in his lifetime. He however wants to retain the profits/dividends from these assests till he dies. Is this allowed?
Answer
If a father intends gifting his assets to his children in his lifetime, he should maintain equality amongst all his children irrespective of their gender. It is Makrooh to give extra to some children and less to others, or deprive others.
By gifting one’s assets to the children, and by them taking possession of it, they become the owners of the said assets. The donor (i.e. father) does not reserve the right of claiming the income (for himself) until his demise, rather the income belongs solely to the kids to whom the assets were gifted.
Yes, it is a different matter where the kids voluntarily gift the income derived from the assets to the father.
- Approved by
- Mufti Muhammed Saeed Motara Saheb D.B.
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