Applying Hibah Trusts in Estate Planning: A Model for Malaysian Islamic Financial Institution

• Published in: Manchester Journal of Transnational Islamic Law and Practice
• Main Author: Arif M.I.A.M.; Moidin S.; Rani M.A.M.; Adenan F.
• Format: Article
• Language: English
• Published: Electronicpublications.org Ltd 2024
• Online Access: https://www.scopus.com/inward/record.uri?eid=2-s2.0-85211230508&partnerID=40&md5=2ef21416aaf8b73bbf7320038e8ed300

Malaysia faced 72,348 cases of delayed inheritance distribution totalling RM12.6 billion, highlighting significant repercussions on individuals, families, and the economy. The issue underscores the importance of efficient resolution and emphasises the need for estate planning. As a comprehensive property planning initiative, the Trust Hibah instrument is gaining popularity among Islamic financial industry players. Amanah Saham Nasional Berhad (ASNB) and Tabung Haji (TH) are two large Islamic financial institutions that have established Trust Hibah products. This note examines the Trust Hibah model used by ASNB and TH to meet the needs of Malaysia's Muslim community using interviews and the data analysis research methods. The findings reveal that the Trust Hibah model for these two institutions differs, particularly in terms of hibah (the granting ownership of property voluntarily from one party to another without any consideration that occurs during the life of the provider), even though both are cash products of Trust Hibah. This note suggests improvements in the Trust Hibah model from the point of explanation of the submission (qabd), which will ensure hibah's validity and contribute to the efforts of the responsible parties to protect Muslims' property. © 2024 Electronicpublications.org Ltd. All rights reserved.