Table of ContentsIntroductionAn Overview of Estate PlanningDifferences between Faraid, Bequest and Living Gift (Hibah)Concept of Hibah in Islamic Estate PlanningProblem StatementIntroductionEstate planning is one of the components of planning personal financial. Estate planning is an important plan for the administration and disposition of one's assets during one's lifetime and upon one's death. Therefore, it involves both managing assets during one's lifetime and managing what happens to those assets after death. However, estate planning in Malaysia is not widely practiced. In fact, some of them lack awareness about estate planning as they think it is not necessary as Islam has its own system of inheritance called faraid system. Additionally, Malaysian Muslims' low awareness of estate planning is also reflected in their awareness of hibah as a method of managing their assets. Although estate planning is very important, lack of research has been done in this area in Malaysia, especially in the empirical study on hibah while it is also highlighted in the Islamic inheritance system. Thus, this study attempts to revisit the practice of hibah in Malaysia using primary data on the knowledge and practice of hibah (Don Inter Vivos) in the context of Islamic estate planning through the control variables. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an Original Essay An Overview of Estate Planning Estate planning or otherwise known asset redistribution is concerned with how a person should distribute their wealth after their death. For Muslims, everything we do is not only beneficial in this world but also in the hereafter. Indeed, we will be asked about how we obtain our wealth, how and on whom do we spend our wealth and it is equally important to know how responsible are we in planning the distribution of our wealth for the benefit surviving family members, non-family members as well as society. At the same time, the wealth acquired must be spent in the right way as Allah declares in Surah Al-Baqarah, verses 261 and 274 which means: "The parable of those who spend their wealth in the path of Allah is that of 'a grain of wheat: it produces seven ears, and each ear has a hundred grains. Allah gives multiplication to whomever He wishes. And Allah cares about everything and He knows all things. (2:261) » “Those who (in charity) spend their wealth night and day, in secret and in public, will have their reward with their Lord: there shall be no fear upon them, nor shall they grieve. (2:274) » Furthermore, in a hadith, Malik narrated to me from Nafi from 'Abdullah ibn 'Umar that the Messenger of Allah, may Allah bless him and grant him peace, said : “It is the duty of a Muslim who has something to bequeath must not let two nights pass without writing a will on this subject. Based on the understanding of these words of Allah, it can be concluded that Muslims should seek their livelihood in this world in order to obtain the blessing of Allah. in the world as well as in the afterlife. The differences between Faraid, Bequests and Inter Vivos Gift (Hibah) Malaysia is growing and more and more players from the banking and private business sectors are entering this industry compared to other Muslim countries. Due to this situation, Amanah Raya Berhad (ARB) is well known and was established as a public agencyauthorized which has offered a complete range of Islamic estate planning since 1995. The Islamic inheritance system is made up of a number of micro-institutions: faraid, bequest, and inter vivos donation (hibah). Faraid is defined as an Islamic law aimed at distributing wealth to one's family after death, according to the rules of Faraid. According to faraid rules, beneficiaries are fixed, proportion of distribution to beneficiaries is fixed, non-Muslim next of kin of deceased Muslim are not eligible for faraid distribution, adopted and illegitimate relations are not recognized for distribution faraids. On the other hand, Wasiyyah is another method of distributing the wealth of the deceased. Wasiyyah is a legal document that describes how the estate should be distributed in cases of post-death affairs and also the possible appointment of a trusted guardian for a minor (18 years old). Writing a wassiyah or will involves stipulating the direction and distribution of the estate to the beneficiaries concerned. For Muslims, they don't really care about making a will, perhaps because of the implementation of the Faraid law. But the distribution of property in accordance with faraid is subject to several conditions, such as blood relationship. Therefore, wasiyyah is the best solution for distributing goods to loved ones, no matter if they are not blood related to the donor. Apart from this, in Islamic estate planning, hibah is a gift that is given to an individual during their lifetime. of the donor or in an estate distribution of the deceased, such as an adopted child or a person loved by the deceased. In Islam, the practice of Hibah is strongly recommended, especially between family members, then between neighbors, etc. It was reported that when Saidatina Aisyah, the wife of the Prophet, wanted to give a gift to one of her two neighbors and asked him for advice. The Prophet replied: “Give to the one whose door is nearest to you.” Concept of Hibah in Islamic Estate Planning Literally, the term Hibah is derived from the Arabic root of “Hababah”, which means to pass or blow. Technically, hibah is defined as giving one's wealth to others without waiting for replacement or exchange with the effect of transferring the property. Another definition is to give ownership of property to another without reward. Hibah is another alternative in the Islamic estate planning structure; complementing faraid and wasiyyah (will). As we know, Islamic inheritance law or faraid describes the distribution of the deceased's property among those who are related by blood to him. Therefore, Hibah will help solve the problem of distributing assets to certain heirs who are not entitled to receive the assets under faraid. For example, the hibah can resolve issues related to the allocation of part of the assets to non-Muslim heirs, to adoptive or illegitimate heirs or even to a particular blocked heir (heirs who do not have the right to inherit, being blocked by other heirs) before he is allowed to receive the inheritance. /she died. Additionally, in the case of a father who wishes to give his son more than he supposes to get in estate planning, the only choice he has is to execute the hibah. As hibah is a form of asset distribution in addition to wasiyyah, it is important to Muslims. know the difference between the two, because sometimes we have a specific intention when we channel funds to others, but we do not respect the characteristics such as timing and type of assets. The main difference between the two is.