Muslims need to make will early

The importance of writing a will is still lost on many.

Many assume that there is no rush to do so because they are still young with assets aplenty.

However, the President and CEO of as-Salihin Trustee Berhad, Abdul Aziz Peru Mohamed believes that the planning and distribution of wealth for inheritance should start as soon as a person starts working.

"We spend our youth collecting riches in the form of property, funds and a lot more. We then protect our wealth with insurance and the likes.

"Sadly, many of us forget the last part, which is the distribution of the wealth upon our death. We tend to forget that we will not live forever," he said.

MANAGING INHERITANCE

Abdul Aziz Peru explained to Bernama the five important steps in disbursing inheritance for Muslims.

The first is the matter of burial, where the heir or those responsible for settling it are deserving of compensation for the amount that they have spent on it.

The second is in settling the debts of the deceased. This is divided into two, the debts in this world and that of the 'akhirat' (hereafter).

"The debts in this world is the debts towards individuals or organisations such as taxes or bank loans. The debts of the herafter is like zakat (tithe) and "fidyah" (donation) for missed fasts (due to old age, illness or infirmity)," he explained.

The third step is to ascertain whether the deceased has willed a third of his wealth to any parties.

"This is because in Islam, only two-thirds of the inheritance of the deceased can be distributed according to the faraid law.

"If the deceased had assigned a third of his wealth to be given to, for example, an adopted child, or a charitable body, then the nominated trustee should ensure that it is carried out," he said.

The fourth is to settle any claims of 'harta sepencarian' (property jointly acquired by husband and wife during the subsistence of a valid marriage). It is only in the final step that the remaining wealth can be divided among beneficiaries.

APPOINTING A WASI

To ensure that the process takes place as it should, Abdul Aziz Peru stressed on the importance of appointing a 'wasi', or an executor for the inheritance.

"The responsibilities of the wasi is not just to ensure the proper distribution of the inheritance but that the five steps are adhered to. This sounds like a simple task but it actually comes with many challenges," he said.

As someone who has handled numerous wills and inheritance cases, Abdul Aziz Peru is no stranger to all sorts of human behaviour when it comes to the matter.

He said that misunderstandings that ensue between heirs and beneficiaries were often due to their lack of knowledge on the division of inheritance according to Islamic law.

Among them were confusion on the faraid law, which is the system of division of inheritance as stated in the Quran.

However, if the beneficiaries mutually agree to adhere to the will of the deceased or to a fair division of the inherited wealth, they do not need to heed the faraid.

"But if someone decides to contest the will, then there is a need to refer to the faraid law," he explained.

He said that in 75 to 80 percent of the cases handled by as-Salihin Trustee, the family or beneficiaries agreed to what has been willed by the deceased.

"When we read the last will and testament of the deceased, it is as if he or she is there with us and we can feel the sadness of the family members listening to it.

"Sometimes a letter is handwritten and attached to the side of the document containing the will, and it would be a message from the deceased, asking the children to take care of their mother, among others," he shared.

UPGRADING EPF NOMINATION POLICY

In other developments, the Employees Provident Fund (EPF) will be implementing a new nomination policy starting Jan 1, 2017.

For Muslims, the New Nomination Form (Borang KWSP 4) will be used.

The form will state the role and responsibility of the 'Nominee' as the executor or wasi for the EPF savings of the deceased instead of being its beneficiary.

The Nominee will also have to fill out the "Perakuan Penama/Penerima Simpanan Ahli Beragama Islam" (nominee declaration for Muslim members) when submitting a Death Withdrawal.

The declaration serves as a reminder of the role and responsibilities that need to be carried out by the wasi in distributing the savings of the deceased in accordance to Islamic law.

In addition to that, nominees who have yet to reach 18 years of age cannot apply to withdraw a deceased member's savings. This is because the role of a wasi can only be executed if the wasi is 18 years and above. Nominees, as wasi, who do not perform a Death Withdrawal within a year after the death of a member will also lose the status of nominee. This is to expedite the withdrawal claims process by the heirs.

Other improvements that affect all members include the standardisation of advanced payment for Death Withdrawal being raised from RM20,000 to RM25,000 depending on the balance amount of savings. Witnesses are also no longer needed when appointing nominees. -- Bernama