Understanding Shariah Law and Inheritance in the UAE

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Zarqa Altaf 3 days ago Insights 0

In the UAE, Islamic principles significantly influence estate planning and inheritance matters for Muslims. Upholding justice, fairness, and religious duties is essential, and one of the most important steps in this process is creating a Will (Wasiyah). Making a Will is not only a legal requirement but also a religious obligation for Muslims, as outlined in the Holy Quran and Sunnah. To be considered valid and lawful, a Will must adhere to Shariah principles.

Why is having a Will especially important for Muslims?

Asset DistributionWhen a Will is created following Shariah principles, the estate is divided among eligible heirs based on their fixed shares (Fara’id). The process begins by settling any debts and funeral expenses. The remaining estate is then allocated according to the predetermined shares, which vary depending on the relationship and circumstances of each heir, such as spouses, children, parents, and siblings. This ensures the distribution is compliant and reduces the likelihood of disputes. Inheritance shares can be adjusted through signed proof of agreement, where an eligible inheritor consents to transfer their share to another rightful heir. For example, if a wife wishes to transfer her share to her children instead of receiving it herself, she can do so in writing. Only upon obtaining such written consent can the Will be redrafted to accurately reflect these arrangements.
Supporting Charitable Causes and SadaqahIslam encourages charity (Sadaqah) and supporting good causes, both during life and after death. With a Will, you can allocate up to one-third of your estate as a bequest to charitable organisations, orphanages, or other causes you care about. This enables continued community support even after your passing. Additionally, you may designate that one-third to a third-party beneficiary who is not already listed in the Will.
GuardianshipA Shariah Will allows you to appoint guardians (Wali) to care for minor heirs or dependents after your death. Typically, the Will should specify close relatives such as grandparents, uncles, or other suitable family members, in accordance with Islamic principles. If no guardian is named or if the designated guardian is unavailable or unsuitable, the matter is referred to the local court, which will appoint a guardian best suited for the child’s welfare.
ExecutorYou can choose a trusted individual to act as the executor of your Will. The executor of a Shariah Will plays a vital role in ensuring your estate is managed properly after your passing. Their primary responsibilities include settling any outstanding debts and funeral expenses and then distributing the remaining assets among the heirs according to their fixed shares. They must carefully oversee the management of assets, ensure all distributions comply with religious guidelines, and handle any necessary legal procedures. The executor’s role is crucial in ensuring that your final wishes are fulfilled accurately, fairly, and in accordance with Shariah principles.

Asset Distribution According to Shariah Inheritance Law

Under Shariah law, inheritance shares are precisely defined for certain relatives based on their relationship to the deceased. The specific distribution of assets depends on who survives the deceased and the family composition at the time of inheritance. Typically, male relatives tend to receive a larger share than female relatives; however, the exact shares are determined by the surviving beneficiaries and their familial ties. Understanding these rules is vital for accurate estate planning and ensuring compliance with Islamic inheritance principles.

Key Principles of Asset Distribution

Fixed Shares: Certain relatives, such as spouses, parents, and siblings, are entitled to specific, fixed portions of the estate.
Variable Shares: The remaining estate is divided among other beneficiaries, often with males receiving twice the share of females when applicable.
Order of Succession: The distribution hierarchy priorities direct descendants and ascendants before extended family members.

Here are some common scenarios:

Scenario 1: Husband passes away; Wife, Children, and Parents survive

Suppose the estate is AED 1,000,000.

– Wifes’ share: (1/8) AED 125,000

– Parents’ shares: (Each parent receives 1/6) AED 166,666.67

Remaining estate of AED 541,666.66 for the children. The Son will receive twice the share of the Daughter:

– Sons’ share: (2/3) AED 361,111

– Daughters’ share: (1/3) AED 180,555

Scenario 2: Husband passes away; No Children but Wife and Parents survive

Suppose the estate is AED 1,000,000.

– Wifes’ share: (1/4) AED 250,000

– Remaining estate of AED 750,000 for Parents. The Father will receive twice the share of the Mother:

– Fathers’ share: (2/3) AED 500,000

– Mothers’ share: (1/3) AED 250,000

Scenario 3: Wife passes away; Husband, Children, and Parents survive

Suppose the estate is AED 1,000,000.

– Husbands’ share: (1/4) AED 250,000

– Parents’ shares: (Each parent gets 1/6) AED 166,666.67

– Remaining estate of AED 416,666.66 for children. The Son will receive twice the share of the Daughter:

– Sons’ share: (2/3) AED 277,777.77

– Daughters’ share: (1/3) AED 138,888.90

Scenario 4: Wife passes away; No Children, but Husband and Parents survive

Suppose the estate is AED 1,000,000.

– Husbands’ share: (1/2) AED 500,000

– Remaining estate of AED 500,000 for Parents. The Father will receive twice the share of the Mother:

– Fathers’ share: (2/3) AED 333,333.33

– Mothers’ share: (1/3) AED 166,666.67

Scenario 5: No Spouse or Children but Father and Siblings survive

In this case, since the father is considered the primary heir within the family hierarchy and there are no other direct heirs like spouse or children, the Father will inherit the entire estate. The siblings do not receive any share in this scenario.

Suppose the estate is AED 1,000,000.00. The Father would inherit the full amount.

Scenario 6: No Spouse, Children but Mother and Siblings survive

Suppose the estate is AED 1,000,000.00

– Mothers’ share: (1/6) AED 166,666.67

Remaining estate of AED 833,333.33 between the siblings. The brother will receive twice the share of the sister:

– Brothers’ share: (2/3) AED 555,555.56

– Sisters’ share: (1/3) AED 277,777.77

Understanding and complying with Shariah inheritance laws is crucial for responsible estate planning, especially if you are a Muslim and want these principles to govern the distribution of your estate. Drafting a comprehensive, legally compliant Will ensures that your assets are distributed fairly and in accordance with Islamic teachings. Additionally, it allows you to express personal wishes, allocate support to charitable causes, and minimise the risk of disputes among your heirs.

At Yungo Law, we specialise in helping our Muslim clients’ draft Wills that are fully compliant with Shariah law and tailored to their individual circumstances. Our experienced team can guide you through the estate planning process, ensuring your wishes are accurately reflected and legally sound.

Contact us today to learn more about how we can assist you in preparing a Will that secures your legacy and provides peace of mind for you and your loved ones.