Islamic Estate Planning is unfamiliar to most American Muslims. Understand that this FAQ only answers general questions. This is not a replacement for a lawyer. Contact us if you want to get in touch. For more comprehensive information, you should get our free report on mistakes people make in their living trust, and get on our email list.
What is the main difference between the Islamic rules of inheritance and the “American” system of inheritance.”
The first difference is that there is an Islamic System of Inheritance, but there is no real “American system.” Islam includes a right to inheritance ordained in the Quran. That means that a child has a right to inheritance regardless of what the father or mother think of the child. Islam views inheritance as being far too important to be left to the individual.
So, the main difference (not the only difference) is that shares are ordained in Islam. In systems of inheritance in the United States, and the laws are somewhat different in each of the 50 states, there is, in general, no such thing as a “right to inheritance.” Islam has such a right.
What happens if I do nothing?
It depends on how your assets are situated. If you are married, the system is set up to give everything to the surviving spouse, though this is not always the case. Often, individuals have a deed to their home that transfers property to a survivor, or they have designations of beneficiaries in accounts and life insurance. Those would control what happens. If some individual leaves behind “probate property,” the intestacy statute would control distribution upon death.
How is Islamic Inheritance Different in Muslim Countries?
The Islamic Rules of inheritance, the fara’id, is the default system in most Muslim countries and a few non-Muslim majority countries as well for Muslims, such as India and Israel. However, there is some variation in how the rules may be applied from one country to another. Also, the opportunities for playing games with inheritance, denying heirs their rights, exists everywhere.
For Muslims in Muslim countries, the system of inheritance is mandatory. However, in the United States, it is entirely up. You can do it or not, like paying zakat or praying. If you don’t want to fulfill your religious obligations, you do not have to.
Can I plan for my property overseas through a California Attorney alone?
In general, the answer to that is going to be no. You will need to work in coordination with an Attorney in the country you hold property.
But if I have my property in a Muslim country, I don’t have to worry about it, right?
It is true most Muslim countries have Islamic Inheritance by default. However, this alone is not reason to be unconcerned. Many things can go wrong. Get a lawyer in the country you have property to protect your family’s interests.