Legacy planning is about making arrangements for your assets that will be left behind upon your death. Other than leaving behind wealth for your loved ones, legacy planning for Muslims should ideally include planned giving for beneficiaries beyond your family or as sadaqah jariyah for your hereafter (akhirah).
You can establish your planned giving through several ways. According to faraidh laws, you can give away up to one-third of your assets to beneficiaries other than your rightful inheritors. Out of this one-third, you can create a Wakaf or make infak donations to beneficiaries and pious charitable causes.
Below are some legacy planning tools that you can use to set aside assets for planned giving and Wakaf creation.
This is a form of ownership where all co-owners have equal interest in the property, regardless of the individual owner’s contribution in purchasing the property. In joint-tenancy, there is a right of survivorship. This means that when a joint-tenant passes away, their interest in the property will automatically be passed to the remaining co-owner(s), regardless of whether the deceased joint-tenant has a written will or rightful inheritors under faraidh laws.
Tenancy-in-common is a type of property ownership where each joint tenant holds a separate and distinct share in the property. An owner’s share in a tenancy-in-common contract becomes a part of his estate upon his death.
Find out more about faraidh laws.