For Muslim families in Malaysia, passing on wealth follows Shariah principles. Understanding how wasiat, hibah and faraid fit together — and where trusts help — makes planning far clearer.
For Muslims, a large part of the estate is distributed according to faraid, the Islamic law of inheritance, which assigns fixed shares to eligible heirs. This governs the default division of the estate.
A wasiat (Islamic will) lets you direct bequests, but typically only up to one-third of the estate can go to non-heirs, with the remainder following faraid. A wasiat also lets you appoint an executor and record your wishes clearly.
Hibah is a gift made while you're alive, transferring ownership immediately. Because the asset leaves your estate, hibah is often used to provide for specific people — a spouse, a dependant — outside the faraid division, when structured correctly.
Trust structures and waqf (endowment) can complement these tools — for example holding and managing hibah assets, or providing for minors. A licensed trustee experienced in Islamic estate planning can help align the structure with Shariah. This guide is general information, not a religious ruling; consult a qualified Shariah adviser for your situation.
General information for Malaysian readers — not legal or financial advice. Speak with a qualified professional or a licensed trustee before acting.
A wasiat is an Islamic will taking effect after death (bequests to non-heirs generally capped at one-third); hibah is a gift made during your lifetime that transfers ownership immediately.
Faraid governs the Islamic distribution of the estate. Tools like hibah and properly structured trusts can address assets outside that default division — seek qualified Shariah advice.
Understand the options here, then speak with a licensed trustee who can structure it properly.
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