Assets Of The Deceased Held In A Trust
Question
A Muslim father has set up a trust for his children to benefit from the property companies in the trust as per the above example. However, the father’s intention, wishes and advice is to keep all the assets together in 1 place, be managed together after his death and not be individually distributed as there is no need for the immediate excess to funds. Only for necessity or if a dire need arises for the beneficiary, then may the capital and profits be distributed to the beneficiaries in a percentage based on Shariah Law of Inheritance.
Will it be acceptable to set up a trust based on the above wherein the trust does not terminate on the death of the Parent but continues for an indefinite period until such a time that all the assets are sold off, with the beneficiaries been the beneficiaries in proportion to their inheritance?
Answer
On demise of the father, every heir assumes ownership of his assets according to his/her share of inheritance. The heir is free to then do as he/she wishes with his/her portion of inheritance. It is therefore incorrect for the father to include such a clause in the trust deed that restricts the heirs in anyway whatsoever.
- Approved by
- Mufti Muhammed Saeed Motara Saheb D.B.
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