The Importance of Wills & Estate Planning For Young People

The importance of a will is often marginalized by the younger generation because it is thought to only be relevant for the elderly or the wealthy, but the fact is that property planning through a will is an urgent need that needs to be thought about as early as adulthood.

Many consider death to be a distant matter so they neglect to prepare, while the words of the Prophet SAW in the hadith narrated by Bukhari affirm that it is not appropriate for a person who has property to bequeath to sleep for more than two nights unless his will is written on his side.

The young people who now increasingly own assets such as cars, first homes, digital savings, or unit trust investments should not take property planning lightly, because this careless attitude can result in the freezing of inheritance and cause disputes in the family in the future.

Differences between Wills, Hibah and Faraid that need to be understood

Before understanding the importance of wills, young people must first distinguish between wills, grants, and faraid so as not to get confused in making plans.

Hibah is a gift of property that occurs during the life of the giver to the recipient without any return, and it is very effective in avoiding disputes because the process of transferring ownership is done immediately.

While a will is a gift of property that will only be implemented after the death of the testator, with a maximum rate of one third of the net property after deducting debts and funeral management costs.

Faraid, on the other hand, is a system of automatic distribution of inheritance according to Islamic law to the heirs whose share has been determined such as husband, wife, son, daughter, mother and father.

By understanding this difference, young people can combine the three instruments strategically, for example donating certain assets during life, bequeathing part of the property to adopted children or charities, and leaving the rest to be distributed according to farid law.

The Wisdom of Statutory Wills in Islam

From the point of view of Sharia, writing a will brings a variety of wisdom that is very valuable if understood by young people.

Among them is to draw closer to Allah SWT through the practice of good deeds using the wealth left behind, increasing the reward after death, making up for the lack of worship during life, as well as strengthening friendship with relatives who do not receive inheritance through farid such as siblings or foster children.

Through a will, one can name alternative beneficiaries in case the original beneficiary dies first, as well as specify in detail who is entitled to each asset such as stocks, gold, vehicles, or savings accounts.

Young people who often change their living status such as newly married, recently had a child, or recently bought a house need to update their will immediately so that the distribution of assets is always relevant to the latest situation.

Without a will, the law will determine the way of distribution that may not be in line with the wishes of the deceased, and may even cause certain assets to fall into the hands of unwanted parties.

In a will, a father or mother can appoint a guardian who is a trustee to take care of young children, as well as establish a special trust to ensure that money and assets are used for the education, health, and welfare of the children.

This is especially important because if a parent dies without a will, minor children may end up in the care of an unwanted party or have their property unprofessionally managed by a court-appointed executor.

In addition, for young people who are dependent on elderly parents or siblings who have special needs, a will allows them to set specific provisions to ensure that the welfare of this group continues to be preserved even after the breadwinner is gone.

Related article: Grants: Meaning, Benefits, Differences With Wills

Minimizing Family Disputes

Every year, the number of frozen estates in Malaysia is increasing with a very large value and one of the main reasons is the absence of a legally valid will.

When a person dies without a will, the heirs are forced to go through a long, complicated and costly process of administering the estate, including obtaining powers of administration, grants of probate, and distribution orders in court.

During that period, property such as land, houses, and bank savings cannot be distributed or sold, causing losses to heirs who may need immediate money for living or medical costs.

Even sadder, the absence of a will is often the cause of fierce disputes between siblings, wives and husbands, or between in-laws and sons-in-law.

By having a clear and legally binding will, all parties will understand the true wishes of the deceased, thus reducing conflict and maintaining family harmony at a time when everyone is grieving.

Anyone who has faced and gone through these difficult moments will certainly recognize the importance of a will in managing an estate.

Procedure for Making a Will Through an Accredited Institution

Young people do not need to feel burdened with the notion that making a will is an expensive and complicated process, because today various institutions such as the State Islamic Religious Council provide will writing services in an easy and affordable way.

For example, the fee for writing a will at MAIS is RM300 for a testator who already includes bequeathed and non-bequeathed property, while the fee for amending a will is only RM50 if there is a change at a later date.

Wills written through accredited institutions will also be kept in a safe place to ensure confidentiality and prevent forgery, and the testator can amend the content of the will at any time as long as it does not conflict with Shariah law.

When the testator dies, an institution such as MAIS will act as an executor who manages the distribution of property in a transparent, fair and professional manner, with a tiered execution fee rate such as 2% for the first RM25,000 of property value and a lower rate for subsequent values.

This gives young people peace of mind that their property will be well managed without burdening the family.

Finally, young people need to change the negative perception of wills and know the importance of wills and begin to see them as a form of noble responsibility towards the family and long-term charity.

Writing a will does not mean hoping for an early death, but it is a reflection of a Muslim who is obedient to religious orders, wise in financial management, and compassionate towards those left behind.

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