WEALTH DISTRIBUTION IN ISLAM

What does the term 'faraid' refer to in Islamic inheritance law?

• Voluntary charity

• Mandatory distribution of inheritance

• A type of bequest

• Gift given during one's lifetime

According to Islamic law, how is the estate of a deceased person distributed among heirs?

• Equally among all children

• Based on the wishes of the deceased

• According to a fixed share as prescribed in the Quran

• Based on the discretion of the local community leaders

What is the primary purpose of a 'wasiyyah' (Islamic will)?

• To determine the distribution of the entire estate

• To distribute the estate equally among all heirs

• To provide for debt repayment only

• To allocate up to one-third of the estate to non-heirs or charity

Which portion of an estate can a person legally bequeath through wasiyyah?

• One-third of the estate

• One-fourth of the estate

• Half of the estate

• All of the estate

What is 'hibah' in the context of wealth distribution?

• A mandatory inheritance share

• A form of charity given after death

• A type of will or bequest

• A voluntary gift given during one's lifetime

How does 'hibah' differ from 'wasiyyah'?

• Hibah is given during the giver's lifetime, while wasiyyah is given after death

• Hibah is used for mandatory distribution, while wasiyyah is voluntary

• Hibah must be formalized in writing, while wasiyyah is informal

• Hibah cannot be revoked, while wasiyyah can be changed

What is the primary function of a trust (waqf) in Islamic estate planning?

• To ensure that a fixed portion of the estate is given to specific heirs

• To manage and distribute the entire estate according to the deceased’s wishes

• To create a charitable endowment or provide ongoing support for a cause

• To pay off any outstanding debts of the deceased

In Islamic estate planning, how should the creation of a will (wasiyyah) be approached to ensure it is valid?

• It must be drafted and witnessed in the presence of a legal authority

• It should be made verbally and documented by family members

• It must comply with Shariah laws and should not exceed one-third of the estate

• It should be kept confidential and not shared with potential heirs

What role does estate planning play in ensuring proper distribution of wealth according to Islamic principles?

• It simplifies the process of distributing the estate according to local laws

• It ensures that the estate is distributed according to the wishes of the deceased, even if they are contrary to Shariah

• It helps in organizing the estate to ensure compliance with Islamic inheritance laws and reduces disputes

• It allows the deceased to avoid paying any debts or taxes

Which of the following is true about the impact of 'wasiyyah' on the distribution of an estate?

• Wasiyyah automatically overrides the shares specified by faraid

• Wasiyyah can only be made to immediate family members

• Wasiyyah must be executed in accordance with the faraid shares after fulfilling the bequest

• Wasiyyah is not valid if it involves non-Muslim beneficiaries