Vol. 1 No. 1 © 8 Open Access Research Islamic estate Planning and Management: Malaysian experience Mohd Khairy Kamarudin & Nasrul Hisyam Nor Muhamad ABSTRACT This research explains Islamic estate planning and management for Muslim particularly in Malaysia. This research employs library research which refers to primary sources such as Al-Quran, Hadis and relevant enactments or acts, and secondary sources such as published journals, articles and proceedings related to hibah, wasiyyah and faraid. This study indicates that hibah giving is the first instrument in the estate planning components, followed by wasiyyah and faraid. Hibah is a voluntary gift giving of one or several subject matters to recipient(s) by owners of wealth during their lifetime without any consideration or return. From the legal perspective, there are no special laws or acts which are related to hibah in Malaysia. Meanwhile, wasiyyah is made during the lifetime of testators and the distribution of the estate to beneficiaries becomes effective only after their death. To date, only four states have special enactment related to wasiyyah which are Selangor, Negeri Sembilan, Melaka and Kelantan. Then, faraid is another Islamic inheritance distribution method to legal heirs after the death of a Muslim based on the Islamic law. Faraid jurisdiction is under the Syariah Court which is responsible to produce “Faraid Certificate’. The differences among these three instruments can be seen from five aspects namely hukm of implementation, time of enforcement, amount of wealth or estate, recipients and time of making contract. KEYWORDS: Islamic inheritance law; Islamic estate instruments; Faraid, Wasiyyah; Hibah giving; Islamic Religious Administration 1. INTRODUCTION Islamic estate planning is one of the crucial elements in the Islamic wealth planning and management. Wealth is one part of sustenance given by Allah to all mankind. Islam permits people to accumulate wealth as Allah said in Holy Qur‟an, Surah Al - International Journal of Management Applications Vol. 1 No. 1 Islamic estate Planning and Management: Malaysian experience Mohd Khairy Kamarudin 1 & Nasrul Hisyam Nor Muhamad 2 1 PhD Candidate, Faculty of Islamic Civilization, Universiti Teknologi Malaysia, and Lecturer, Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan 2 Senior Lecturer, Faculty of Islamic Civilization, Universiti Teknologi Malaysia This is an open access article distributed under the Creative Commons Attribution License (CC BY 4.0) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. http://creativecommons.org/licenses/by/4.0/ CORE Metadata, citation and similar papers at core.ac.uk Provided by Universiti Teknologi Malaysia Institutional Repository