• Saturday, March 02, 2024
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Securing the Future Of Loved Ones with Islamic Estate Planning

Securing the Future Of Loved Ones with Islamic Estate Planning

When planning for the future, we focus on life goals such as getting married, getting an education, buying a house, and over the course of our lives, accumulating wealth. However, we often do not plan for the preservation of assets that we spend years growing. The savvy career person and/or entrepreneur needs to start considering wealth preservation and transfer in his/her financial planning and the good news is that one need not go against Faith and personal values to plan wealth preservation and transfer.

For Muslims, The Qur’an provides explicit procedures on how to distribute two-thirds of a Muslim’s assets to family – parents, spouse(s), children and other family members; after which freedom is given on how the remaining one-third should be managed. Also, if preferred, the one-third can be spread over generations or could be used to create and manage the activities of foundations, make Zakat distributions, and take care of the less privileged in the society, but this will require a Charity Trust.

Islamic Estate Planning is very important for Muslims, as it is considered an act of purifying or cleansing, which involves voluntary and compulsory distributions made to family and charity after a person’s passing. It is as a fulfilment of the responsibility of ensuring that beneficiaries are well taken care of and helps to preserve harmony by avoiding dispute. Based on the teachings of Prophet Mohammed (SAW), every Muslim should have an Al-Wasiyya – an Islamic Will which contains instructions on wealth distribution to heirs.

Estate Planning is considered imperative for everyone, as it remains a smart way to structure preservation and transfer of one’s assets – houses, cars, investments, insurance etc. By properly planning your Estate transfer in a timely fashion, you reduce Estate taxes when transferring assets in later years, or by family members, upon your demise. By planning ahead you also protect your assets from becoming part of public record.

The first step to take, on your journey to planning your Estate is seeking the services of a professional competent Estate Planner, who can provide professional advice to ensure a comprehensive and well-thought through plan is developed on your behalf. This Trustee may also be in charge of gathering your assets, investing them conservatively while your Estate is being administered. Engaging a Trust company like FBNQuest Trustees, who are pioneers in Islamic Estate Planning in Nigeria, ensures that you get expert support in preserving and executing your Estate Plan in line with Islamic guidelines while you’re alive and after your demise. Services offered include delivery of income and assets to your Beneficiaries, asset management and debt settlements, as well as complex decision-making on your behalf.

Estate planning is a subject we must all face sooner or later. Plan for today and tomorrow so you can retain full control of your wealth, and ensure its value is preserved for your household. FBNQuest Trustees provides continuous education and support for individuals and organisations through Estate Planning Clinics, Seminars, its Legacy Series programs and one-to-one consultations.

Challenges of Islamic Estate Planning

The major impediment of Islamic estate planning is education, especially in the Northern part of the country.

According to a recent data from the National Bureau of Statistics (NBS), the literacy level in Yobe State stood a 7.23 percent, the dismal record of Yobe is followed by Zamfara (19.16 per cent); Katsina (10.36 per cent); Sokoto (15.01); Bauchi (19.26); Kebbi (20.51); and Niger (22.88) respectively. Only Taraba is an exception with 72 per cent literacy rate.

 While some believe that Estate Planning is paramout for Muslims based on the teachings of Propeht Muhammadu (SAW), others are of the conviction that a muslim is not expected to keep a will.

In order to solve this problem, FBNQuest Trustees , in 2017, began actively disseminating valuable information and educating Muslims on Islamic Estate Planning through its flagship programme – the Legacy Series, both on radio and in press. The Trustee has also established relationships and partnerships with key players in the Islamic Finance space. It currently has been working arrangements with Scholars who are vast in Islamic Jurisprudence and Legal Partners seasoned in Islamic Finance.

The Islamic Estate Planning business is a relatively new one in this part of the world.Development of the market is fallout from the recent prominence of Islamic Finance, catalysed by the successes of the FGN N100bn Sukuk Bonds, to which FBNQuest Trustees was also Delegate.

“To have a proper structure, a prospective Client will have to speak with one of our Trust Experts so that their unique situation is understood and a clear understanding of their objectives is outlined. This is a critical first step because each client has a unique need, which cannot be replicated for another individual,” said AdeKunle Awojobi, managing director.

“Therefore, to get the best solution each person will have these one-on-one sessions with the experts and the output of these would guide drafting of the Estate Plan and subsequent recommendations of the most appropriate structure,” said Awojobi.


About FBNQuest Trustee

FBNQuest Trustees is a subsidiary of FBNQuest Capital. Our distinctive heritage as an organisation allows us to leverage specialisation of the subsidiaries of our parent company to enhance delivery and provide world-class client solutions.

We assess your needs and provide tailored solutions for the safekeeping of assets. From estate planning to government bond issuance, we hold a solid market position as a leading trustee services provider.