ISLAMIC property management involves an individual's assets and inheritance from deceased family members.
If an owner did not make any plans or could not finalise documentation for properties, property (or inheritance) management will be involved.
Conventionally, the heir(s) will manage the inheritance. They are responsible for handling the distribution of inheritance according to proper procedures.
Failure to manage inheritance efficiently can lead to illegal ownership, uncleared debt to creditors, unclaimed property, increase in the number of heirs if the matter is prolonged, families breaking up due to inheritance denial, uncertain ownership status, loss of related documents or the heir may forget details about the property.
The rise in unclaimed property among Muslims in Malaysia has become a critical problem.
In 2020, conflicts among heirs, lack of awareness and carelessness are the common factors behind almost RM70 billion in unclaimed property, with a majority of cases involving Malays.
The amount can develop the country's economy. Unfortunately, the number reached RM90 billion this year.
Property management and planning while one is alive is a demand in Islam.
In Surah al-Nisaa' (4):9, Allah S.W.T. says: "And let those (executors and guardians) fear (injustice) as if they (themselves) had left weak offspring behind and feared for them. So, let them fear Allah and speak words of appropriate justice."
Whether an individual wishes to plan and manage the property by themselves or manage the deceased's inheritance, three values are required: accountability, fairness in delivering the rights while avoiding injustice, and being smart in ensuring the property is beneficial for them in the world and the hereafter.
This will make them understand that faraid (the syariah formula in inheritance distribution) is not the only instrument that will solve the property (or inheritance) problem once they pass away, but faraid is the last mechanism in property management.
Three steps in managing one's own property are identifying the family's structure, including those who are significant to them, the net worth of the property and
determining the instrument required to manage the property.
In addition, it must be determined whether the property is wholly-owned, shared with others or collateral. This includes property in any form, whether physical or digital, in money or shares.
Whatever instrument used must be for the recipients' benefit.
Among the challenges that hinder the carrying out of this responsibility is poor understanding and lack of proficiency among Muslims in Malaysia in managing property, either for themselves or family members.
This includes poor understanding of the difference between hibah (grants) and will (wasiat).
Hibah grants ownership of property and is made by a person to someone still alive without any consideration (reprisal), while wasiat is a gift after the owner's death as a testator.
Every party, government agency or individual should take these challenges seriously and consider this a national challenge, or even a struggle of the ummah.
Among the ways property can be distributed or allocated to family members who have specific backgrounds and statuses are hibah (including gifts and alms), matrimonial properties, wakaf, will, trust, takaful and nazar (vow).
Furthermore, the three property management steps mentioned earlier will need to include processes that require smarts and meticulousness.
They include handling property listings, alimony and debts, as well as dealing with sales and purchase or trustees, clarification of the net worth of the property and distribution or allocation based on wishes or requests.
These processes must also adhere to Islamic law as the principal and fundamental guidance.
In conclusion, we should realise that property or inheritance is a burdensome trust, as recorded in the hadith of Rasulullah S.A.W.: "The feet of the son of Adam shall not move from before his Lord on the Day of Judgement until he is asked about five things: about his life and what he did with it, about his youth and what he wore it out in, about his wealth and how he earned it and spent it upon, and what he did with what he knew."
The writer is senior research officer, Centre for the Study of Shariah, Law and Politics, Institute of Islamic Understanding Malaysia (IKIM)