Monday, January 18, 2010

Trusteeship and as-Salihin Trustee Berhad


A Trust is a legal obligation that comes into existence when an individual or other legal entity ("the settlor") transfers the legal ownership of his assets to another person or persons ("the trustees") to hold for the benefit of other person or persons ("the beneficiaries").

>> A Trust that takes effect only upon the death of the Settlor invariably invokes the rigid operation of the Faraid Rules.

>> To avoid such process and remain Islamic-compliant, as-Salihin Trusts are structured so as to take effect immediately, although the total benefits thereof are staggered through the years.

>> At as-Salihin we offer Trustee service in the areas of education, maintenance, corporate, charity and insurance/takaful.

Benefits of creating a trust

1. Trust property is not considered part of the Settlor's estate.
>> Will not be frozen upon the death of settlor.
>> No need to obtain court order to administer.
>> Takes effect immediately according to terms and conditions in the Trust Deed.

2. You decide on the terms of the distribution and these are not subject to Faraid.

3. There is no limit as to the amount you can place in a trust and your beneficiaries can be anyone, Muslim or non Muslim alike.

4. As we are governed by the Trustee Act 1949 and the terms of the Trust Deed.
>> We will manage and administer the trust assets independently and in accordance with the law.
>> The trust fund will be utilised only for intended purposes and beneficiaries.
>> Your assets and monies will be professionally managed.

At as-Salihin we offer Trustee services which are truly Islamic and comprehensive in the following areas:

>> Education
>> Maintenance
>> Corporate
>> Charitable
>> Insurance/Takaful

Source: Islamic Estate Planning, as-Salihin Trustee Berhad

Please contact Mansid at (013-366-1242) for more information.
Authorised Estate Planner for as-Salihin Trustee Bhd.

Sunday, January 17, 2010

Guardianship of Property

Guardianship of Property


Guardianship is the management by an adult of the person and property of either a minor or an insane or disabled adult. In Islam, guardianship is divided into two categories, namely, guardianship over:

>> the ward's property; which expires upon the child reaching the age of majority (18), unless for reasons of insanity or other disability, the ward remains unable to take care of himself or to manage his property accordingly;

>> the ward's person; which expires in the case of a male child upon him reaching the age of puberty and a female child upon her marriage.

Who has Guardianship priority?

The father shall be the first and primary natural guardian of the person and property of his minor child, and when he is dead, the legal guardianship devolves upon one of the following persons in the stated order of preference:

>> Father's father

>> Executor appointed in the father's Wasiat

>> Father's father's executor

>> Father's father's executor's executor

At as-Salihin we can offer parents of young children and those with disabled dependents our services to act as guardian of their respective ward's property and maintain the following benefits:

>> Preservation of assets

>> Protection of assets

>> Maintains and provides for needs of beneficiaries

>> Professional and financial security

>> Confidentiality and professional management of assets

Source: Islamic Estate Planning, as-Salihin Trustee Berhad

Please contact Mansid at (013-366-1242) for more information
Authorised Estate Planner for as-Salihin Trustee Bhd.

Custodian of Wasiat Documents

A. Custodian of Documents

Custodian of Wasiat Document

Once you have written your Wasiat (Islamic Will), it is incumbent upon you to ensure that the document is kept in a safe place so that your beneficiaries would not unduly suffer on account of any problem that may arise, such as their inability to locate your Wasiat once you are no longer around.

>> Highly secure custodial services using the latest computer technology are available at as-Salihin for the safe-keeping of all the documents which you have executed through us.

>> No matter where or when you may die, a call to as-Salihin by your beneficiaries or solicitors for sight of your Wasiat would ensure prompt delivery of a copy thereof for their further action.

>> Avail yourself of this facility and instantly remove the most common risk factors such as fire, flood, loss, theft or tampering that may place your wishes in jeopardy.

B. Your documents at as-Salihin Trustee shall be:

>> Protected by a professional Wasiat Custody facility with a secure back-up system.

>> Assigned a unique Wasiat Custody number and logged into our database.

>> Delivered to, and only to, the executor(s) or appointed solicitor, at the correct time who produces the death certificate (original or certified copy).

C. Benefits of Custody at as-Salihin

>> Safe custody

>> Personalized Custody Cards

>> Personalized Asset Inventory Booklet

>> Annual updating reminder

>> Free Personal Accident Takaful (optional).

Source: Islamic Estate Planning, as-Salihin Trustee Berhad

Please contact Mansid at (013-366-1242) for more information
Authorised Estate Planner for as-Salihin Trustee Bhd.

Saturday, January 16, 2010

Declaration of Hibah (Pre-Hibah)


Hibah is a transfer of property without exchange of consideration with a definite proposal on the part of the person who gives the gift and acceptance on the part of the person to whom the gift is given. "Pri-Hibah" is a product of as-Salihin so named to reflect the use of "Hibah" as a mechanism to protect the rights of the children of the Settlor how low so ever. In effect, it is a gift instrument.

Declaration of Hibah

Declaration of Hibah is a declaration by the owner of a specific asset starting that he gives the asset to the beneficiary and he is holding the asset for the benefit of the beneficiary. It is a written document wherein the terms and conditions on which the settlor is holding the assets are set out.

Characteristic Pri-Hibah at as-Salihin

>> It takes effect immediately (at the time the declaration is made).

>> Only gift from parent to child is revocable.

>> It is not subject to Faraid but subject to the terms of the Declaration of Hibah.

Advantages of Creating Pri-Hibah

1. The Pri-Hibah asset is not considered part of Settlor's estate (as it takes effect immediately according to the terms and conditions in the Declaration of Hibah) and consequently is outside the Faraid distribution rules. It can therefore be used to balance distribution.

2. The settlor has the power to revoke the Hibah.

3. The settlor can be sure that the intended beneficiaries are taken care of even upon his incapacity, not solely on death.

4. The settlor continues to enjoy part of the benefits of the Pri-Hibah asset while he is alive and can appoint a protector to safeguard minors's interests.

** Declaration of Hibah can only be created if the beneficiary can receive benefit from the asset from the time the declaration is made.

Source: Islamic Estate Planning, as-Salihun Trustee Bhd.

Please contact Mansid at (013-366-1242) for more information
Authorised Estate Planner for as-Salihin Trustee Bhd.

Declaration of Harta Sepencarian

What is a Harta Sepencarian?

Harta sepencarian is a property jointly acquired by husband and wife during the subsistence of a valid marriage. The surviving spouse is entittled to claim her portion thereof from the deceased spouse's estate before distribution in accordance with the Faraid rules.

Harta Sepencarian Services at as-Salihin

It can sometimes happen that beneficiaries of a Muslim deceased contest a surviving spouse's harta sepencarian claim. To avoid the unpleasant family disputes that might arise among the beneficiaries after the testator's death on this issue, as-Salihin has devised documents which would avoid such situations.

Advantages of Harta Sepencarian Declaration

>> Both parties can decide and agree upon the quantum of distribution.

>> Rights of both spouses fully protected as what is agreed in the Declaration is incontestable.

>> Expedite distribution process as parties do not have to go to court to assert their claim.

>> Cost saving as without the Declaration parties have to go through court to prove their contribution.

>> No dispute as the Declaration already records the agreement between the parties.

>> Convenient and easy since all that needs to be done is for the parties to instruct as-Salihin on their agreed portion of interest in the subject property.

Source: Islamic Estate Planning, as-Salihin Trustee Berhad.

Please contact Mansid at (013-366-1242) for more information
Authorised Estate Planner for as-Salihin Trustee Bhd.

Wasiat (a Muslim Will)

What is a Wasiat (Will)

Wasiat is a declaration of a person made during his life time with respect to his property or benefit thereof, to be carried out for the purpose of charity or for any other purpose permissible by Islamic Law, after his death.

Authority on Wasiat

Narrated Abdullah bin Umar: The Prophet S.A.W. said:
"It is not permissible for any Muslim who has something to will to stay for two nights without having his last Will and Testament written and kept ready with him."
Excerp from Sahih Al-Bukhari (vol IVP1)

Who Should Write A Wasiat (Will)

Since non-heirs (whether Muslims or otherwise) can generally benefit under a Wasiat, Muslims with assets and who have the following persons or organisations in contemplatiom to benefit under their Wasiat should hesitate no longer in writing their Wasiat:

>> Grandchildren
>> Adopted children
>> Foster parents
>> Close friends
>> Mosques
>> Charitable Organisations
>> Orphanages
>> Non-Muslim children from previous marriage
>> Non-Muslim family members
>> Alma mater
>> Hospitals
>> Others who are not beneficiaries Faraid

Benefits of Writing a Wasiat (Muslim Will)

>> Expedite the legal process.
When a person dies, all his assets will be frozen. Assets distribution can only be effected when Grant of Probate or Letters of Administration are obtained from the High Court. Without a Wasiat, administration bond (guarantee) and sureties (guarantors) must be produced before distribution can be effected.

>> Avoid family contention

>> Appoint trustworthy executor to administer your assets whether individual or Trust Corporation.

>> Appoint guadian of property for minor children.

Source: as-Salihin Trustee Berhad, "Islamic Estate Planning".

Please contact Mansid at (013-366-1242) for more information
Authorised Estate Planner for as-Salihin Trustee Bhd.