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Ok. Got itProviding services for our Muslim clients: Shari’ah-compliant investments and wills.
Nedbank is pleased to offer our Muslim clients two services.
We offer access to Shari’ah-compliant investments and the drafting of Shari’ah-compliant wills in accordance with the Islamic laws of inheritance, with succession planning as an optional value-added service for our clients.
What are Shari’ah-compliant funds and wills?
Shari’ah-compliant funds are investments governed by guidelines under Islamic law, which specify that non-permissible sources of investment income may not be exploited in the construction of these funds. Similarly, the law of Islam gives guidelines on how Muslims should distribute their estate. The Quran determines how stipulated portions should be administered among Islamic heirs. If a person does not have a will, the estate will be distributed according to the Intestate Succession Act, 81 of 1987.
A brief overview of Islamic inheritance
After first paying funeral expenses, estate administration costs and liabilities from the estate, the balance becomes the distributable portion of the estate and must be distributed in accordance with the Islamic laws of inheritance.
The person making a will (testator, who is male, and testatrix, who is female) has two options in this case. The first option is to bequeath the entire distributable portion in accordance with the Islamic laws of inheritance. The second option is to bequeath at least two-thirds of the distributable portion of the estate in accordance with the Islamic laws of inheritance and exercise free choice over how the remaining portion of up to one-third is to be bequeathed. This bequest is known as a Wasiyyah. This provision allows for, but is not limited to: public benefit organisations, educational institutions, non-blood relatives, and friends being noted as beneficiaries of the estate.
Marital regimes in South Africa
Islamic laws of inheritance are applied differently to the different marital regimes in South Africa. When it comes to an ante-nuptial contract without accrual, the Islamic laws of inheritance are fully enforceable. However, when dealing with marriage in terms of an ante-nuptial contract with accrual, the Islamic laws of inheritance are not enforceable due to the accrual claim that can be established only on divorce or death.
With regard to marriage in a community of property, the Islamic laws of inheritance cannot be enforced unless the testator and testatrix mass their estates. This means that on the death of the first dying spouse, the surviving spouse will have to make an election to either adiate or repudiate the massing of the estates. If the surviving spouse has elected that massing takes place, the assets of the massed estates are then distributed in accordance with the Islamic laws of inheritance in the estate of the first death.
Certification for Shari’ah-compliant wills
To add more value to our clients, we are offering certification from an Islamic body that will attest to the will being Shari’ah-compliant. This will either be from the Muslim Judicial Council (MJC) or the Islamic Council of South Africa (ICSA). For this certification to be obtained, the client would need to sign a consent form giving us the authority to seek the certification.
Practices relating to Shari’ah-compliant wills
Our drafting fees pricing policy and safe custody fees pricing policy apply. Application forms must be sent via email to willscentre@nedbank.co.za.
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What are Shari’ah compliant investment funds?
Any asset proposed by fund managers is evaluated by the respective fund’s independent Shari’ah Supervisory Board. We offer Shari’ah funds from the following two investment houses:
Shari’ah wills |
Want to know more and get expert advice and support? Here’s what to do:
Connecting you with expertise, advice and ways to structure your wealth optimally both during and after your lifetime.
Connecting you with expertise, advice and ways to structure your wealth optimally both during and after your lifetime.