Date: Tuesday, February 28, 2012,
Can you please inform me that if I have bought my property solely from my work wages and my children's monies received from the government, is it permissible in shariah to have a child trust fund drawn up in my last will so as my children inherit the property on my demise?
Muhtaram / Muhtaramah
In the Name of Allāh, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāh wa-barakātuh.
It is impermissible to have a Child Trust Fund drawn up in a manner that will make your children immediate inheritors and owners of the share of your property upon your demise. The share of your property will have to be distributed according to the Islamic law of inheritance. For example, if you pass away leaving behind your wife and children. The share of your property will be distributed in the following manner: 1/8 of your property to your wife and remaining to your children.
If you wish to give ownership of your share of the property to your child in order to secure the complete home for them after your demise, then you will have to do so in your lifetime.
And Allah knows best
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