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Your guide to preparing anattEthiv eHalalignpasA1Inspire one. Inspire many.Free DIYIslamic Willtemplateinsideney CamMoiic al IntIslamic Will1stethical.comIn partnership withThe Shari’ah accuracy of this guidehas been authenticated by theAl-Qalam Shari’ah Scholar Panel

IntroductionAll praise is for Allah, Lord and Sustainer of the Worlds. We praise Him, seek His aidand beg of His forgiveness. Indeed, Allah is the One who gives life, and He is the Onewho takes it, and to Him shall we return.As Muslims, we are required to bear the anguish of losing aloved one with patience, to beseech our Creator to be mercifulto the soul of the deceased, and most importantly, to remindourselves of the temporary nature of this life, so that we maybetter prepare ourselves for the next.Whilst many Muslims ensure funeral rites are properly observedwhenever there is a death, there is much less emphasisgiven to ensuring the assets of the deceased are distributedamongst the family in accordance with Quranic requirements. This is a compulsory(fardh) obligation on the inheritors that is best achieved through preparing a legallyvalid Islamic Will.This guide contains within it a legally valid DIY Islamic Will template, which can becompleted reasonably easily and quickly. Before completing this DIY template, pleasefirst read some important information on Shari’ah, tax, ownership, family and legalconsiderations.Please note 1st Ethical Charitable Trust cannot take any liability stemming from theuse of this document. The contents herein are for information purposes only, andprofessional advice should be obtained in case of query.

Shari’ah &tax considerationsThe assets of the deceased shouldbe distributed accordingly, in order ofpriority:A. All funeral expensesshould be paid. It isperfectly acceptable forthese expenses to be metvoluntarily by one or morefamily members.B. Any outstanding debts should berepaid.C. Any bequests (wasıyyah) should behonoured as long as (i) their value doesnot exceed one-third of the value of theremaining net assets (assets left afterdebts and funeral expenses are paid), andalso on condition that (ii) the recipient ofthe bequest is not an individual who isentitled under Sharı‘ah to receive a share(e.g. the spouse, child, parent, etc. of thedeceased).Many Muslims choose to make a bequestto charity as a means of ensuring somegood deeds continue to benefit themeven after their death (sadaqah jariyah).Making a bequest is optional. Pleaseconsider one of our four partner charities,Islamic Relief, Muslim Aid, Muslim Handsand Ummah Welfare Trust.D. The remaining assets, after deductingdebts, funeral expenses and bequests(if applicable) must be distributedaccording to Quranic injunction. Theactual distribution depends entirely uponthe number of surviving family members,but most likely involves parents receivingone-sixth of the assets each, and a wife(in the case of her husband passing away)one-eighth, or a husband (in the case ofhis wife passing away) one-quarter, withthe balance shared between the children,such that sons receive twice whatdaughters receive.Please note these guidelines do not applyin all scenarios, and a scholar should beconsulted to determine specific shares.Tax ConsiderationsInheritance tax is payable at a rate of40% on all wealth, including the familyhome, valued over 325,000 for a singleperson, or 650,000 for married couples.All wealth transferred to a spouse ondeath is exempt from inheritance tax.Wealth transferred to anyone else ondeath is only exempt up to a limit of 325,000. This limit can vary over time,and is applicable for the tax year ending5th April 2015. This DIY Will templateis therefore not suitable for those whohave wealth over 325,000 (or 650,000for a married couple). Please see theexample below.Sajid is single, and has thefollowing assets:1. House valued at 250,0002. Personal Savings of 150,000Does Sajid have to pay Inheritance Tax?The answer is yes, as explained in thetable below:Estate ValueLess AllowanceNet EstateTax Liability @ 40% 400,000 325,000 75,000 30,000Please note that if Sajid was married,both he and his wife could combine theirallowances, resulting in inheritance taxonly being paid on assets valued over 650,000.

English law complianceA Will must be legally valid so that it canbe enforced by the courts if the needarises. Given Sharı‘ah is not recognisedunder English Law, the easiest way toenforce Sharı‘ah is to place wealth “undertrust”, but only after death has occurred,not prior to death.A trust is a distinct legal entity recognisedunder English law. It is controlled bytrustees on behalf of beneficiaries(recipients), who would typically be thefamily members. Specific trustees canbe nominated within the Will, who wouldbe legally required to follow Shari‘ahprinciples when distributing assets to thebeneficiaries.Laws of IntestacyThe surviving family members of someonewho passes away without a Will tendto divide wealth by mutual agreement.If there is a dispute, the English courtswould ultimately decide who gets what,according to the ‘laws of intestacy’,which do not follow Sharı‘ah principles.Those who are concerned about a familydispute over inheritance should prioritisethe setting up of a Will.YUNUS DIESHas a legallyvalid IslamicWillDoesn’t have a legallyvalid Islamic WillIntestateAssets distributedaccording toshari’ah principlesoutlined in WillDisputeCourt of LawLAW OF INTESTACYFirst 250K Chattels goes tothe WifeRegularincomefrom 50%remainingshareRemaining 50%put into a Trust.Children haveequal share at 18years of ageLegal consequences at odds with Shari’ahJointly Owned AssetsMany couples chooseto own their homes orother assets in jointnames,usuallyheldunder a “joint tenancy”.This means upon thedeath of a partner, ownership of theasset will automatically pass entirely tothe surviving partner, regardless of whatis stated in the Will. This goes againstShari‘ah principles. Changing jointlyowned assets to “tenants in common”resolves this issue by allowing the Willto determine who inherits from the shareof the partner who has passed. The LandRegistry website contains step-by-stepinstructions on how to make this change:landregistry.gov.ukGuardianshipWhen preparing a Will, parents who haveminor children may wish to considerwho they would elect to look after theirchildren, if both parents were to passaway whilst their children were still young.Our DIY Will template allows guardians tobe nominated.Clarifying Ownership of Wealth BeforePreparing A WillDuring life, some parentsfail to clarify whethertheir home is ownedjointly by husband orwife, or solely by one ofthem, or whether childrenare co-owners or employees in thefamily business. This type of uncertaintyis Islamically incorrect and also a causeof disputes after death. Please use thelist of assets sheet after the DIY Willtemplate to clarify ownership of wealth.

Will template guidelinesPLEASE READ BEFORE COMPLETING THE DIY WILL TEMPLATE:1. Only insert information in the white dotted box sections of the Will.2. Please store this Will template in a safe place and inform familymembers of its location.3. You will need to appoint Guardians to look after any minor childrenand Executors to manage your estate after your death. Please ensure you havereceived consent from prospective Guardians and Executors before you include theirdetails. Should the need arise for a Guardian to be appointed, they will need to consulta scholar over Sharı‘ah rules pertaining to guardianship.4. Please note for married couples, a separate Willis required for both husband and wife.5. If you wish to use this Will, please ensure the documentis signed, dated and witnessed in accordance with EnglishLaw and Sharı‘ah principles.6. A Will which is unsigned, or undated or not independentlywitnessed by TWO persons will not be valid.7. Please ensure the TWO witnesses are NOT family members, or married to familymembers, not named Executors and Trustees of the Will, or married to them, and finallyare independent adults of sound mind.8. Note your main assets and debts, along with details of bank account numbers, landregistry records, etc. in the ‘List Of Major Assets’ after the Will template.THIS WILL IS ONLY SUITABLE FOR:1. Those owning assets in England or Wales who want an Islamic Will valid underEnglish Law.2. Those whose individual assets are valued at less than 325,000 or,for married couples, those whose joint assets are valued at 650,000(40% inheritance tax may be payable on any assets over this amount).3. Those who expect their surviving family to amicably distribute their wealth upontheir death.If any one of the above three conditions does not apply to you, please do not proceedwith using this template, and obtain professional advice.