HOW DO YOU TURN YOUR ASSETS INTO A GIFT WITHOUT A WILL DURING YOUR OWN LIFETIME?

Hibah - A gift for the ones you love during your own lifetime for Muslims

Our spouses Our children. They are the very source of our happiness. As such, it is only natural for us to provide them with security and protection to ensure their safety and happiness. While this does not pose much of a problem if done on a daily basis, wherein lays the safety net in the event of the unexpected? Our calling to The Almighty is not something we can predict. Which then raises the question: In the event, what will happen to our loved ones?

What is Hibah Harta?

Hibah Harta, is a private contractual arrangement whereby a person (the Donor) allocates his property, during his lifetime, to his loved ones (the Donees). In doing so, the property allocated thus will be held in trust. This concept involves three parties - The Donor, The Donee and The Trustee.

Upon the Donor's demise, the Trustee will then transfer the gifted property to the Donee. As Hibah Harta is a private contract done during the lifetime of both the Donor and the Donee, the property will not form part of the Donor's estate, and not subjected to the Probate and Administration Act and Faraid. Hence, this makes the transfer of the Donor's assets smoother and trouble-free.

In Islam, it is encouraged (sunat) to perform Hibah your asset. Hibah is not subject to laws relating to Estate (Deceased Estate). Thus, the time taken to distribute the Donor's assets according to his wishes would be easier and faster. In doing so, the Donor is also ensuring the well being and harmony of his family.

The difference between Hibah Harta and a Will?

Without Hibah Asset or a Will (Deceased Estate)

The administration of your estate may encounter many unforeseen problems and difficulties, as it would be subject to the rules and regulations of various regulatory authorities which can prove to be daunting and time consuming. Either way, the distribution process of your estate may take between 6 months to 10 years. There have been cases which stretched up to 20 years.

With a Will

The processing time of a Will is a little shorter (between 3 to 6 years), as the terms of your Will may have to be read out in the Civil Courts. However, this procedure is still subject to the various Acts and Regulations such as: Probate and Administration Act, Rules of The High Court, Faraid / Will Act.

With Hibah Harta

As Hibah is a private agreement made between two consenting parties during their lifetime, it is not subject to any laws relating to the estate of the deceased or a Will. Thus, the time taken to perfect the assignment of your assets by way of Hibah will take only between 14 days to 3 months.

The assets of the gifted property will be preserved and managed by the Trustee. Hence, preserving the security and well-being of the Donor, the gifted property will be wholly owned by the Donee only upon the demise of the Donor.

With Hibah, you can be assured that your loved ones will be well taken care of when you are no longer around to do so. You will rest easy with Hibah.