Welcome to the November 2024 edition of our Malaadhu Thar’wah newsletter. In this edition, we will continue with our case studies on multi-generational wealth planning for a family.
The Client
Chief Jimoh is a successful businessman in Abuja, Nigeria. He has accumulated significant wealth over the years through his real estate investments and his thriving travel agency. Chief Jimoh is a practicing Muslim and wants to ensure that his estate is distributed according to Islamic principles after his passing. He has two children from his first wife, and his second wife, Kafilat, has no children of her own. Kafilat manages an orphanage. He is concerned about providing for Kafilat and continuing resources for the orphanage as well as some extended family members.
The Challenge
Chief Jimoh needs to create a comprehensive Wasiyyah (Islamic will) that aligns with Islamic principles. He wants to allocate a portion of his wealth to Kafilat and make provisions to cater for orphanage and its beneficiaries, while also considering his extended family and potential charitable contributions.
The Solution
Chief Jimoh consults with an Islamic estate planning expert, together, they draft a Wasiyyah that adheres to the following principles:
- Chief allocates up to one-third of his estate to Kafilat, the orphanage and his extended family members.
- The remaining two-thirds of his estate are distributed among his children according to the Faraid (Islamic inheritance) rules.
- Chief Jimoh admonishes his children that on his demise, his operating investments and businesses (e.g the travel agency) could be sustained and remain in operations provided that they all accede to continuation of the busines (or support the family member who does), secure capable hands to manage it while they enjoy the dividends and profits that accrues to the business.
- Chief Jimoh appoints an Islamic Estate planning institution as the executor of his Wasiyyah to ensure its proper implementation.
- The Wasiyyah is registered with the probate registry.
The Outcome
Chief Jimoh’s Wasiyyah ensures that his estate is distributed in accordance with his wishes and Islamic principles, while also providing for his wife, children and the sustainability of his assets and business interests to benefit them. The clear documentation and appointment of a professional Executor helps to prevent potential family disputes and ensure a smooth transfer of his assets to the designated beneficiaries.
Do you want to know more about Wasiyyah? Read our article on Wasiyyah here.
As a fiduciary business, Fiduciary Services Limited is part of a global body, comprising lawyers, accountants, financial advisors and other practitioners that help families plan for their futures. As specialists in inheritance and succession planning, we draft wills and trusts, administer estates, act as trustees and advise families and individuals on how best to structure their assets and wealth to ensure their protection and preserve their needs for future generations.
Remember you can secure your legacy according to Islamic principles with our expert estate planning services.
Get in touch with one of our professionals today by sending a mail to contact@fiduciaryservicesltd.com.
