16 Februari

HIBAH VS FARAID: COMPLETE AND DETAILED COMPARISON IN ISLAMIC ESTATE PLANNING

Hibah and faraid are two fundamental concepts in Islamic wealth distribution and estate planning. Both involve the transfer of ownership of assets, but they differ significantly in terms of timing, control, legal authority, and distribution method.

Understanding the difference between hibah and faraid is essential for Muslims who want to manage their wealth properly and ensure financial protection for their loved ones.


SECTION 1: DEFINITION OF HIBAH

Hibah is a voluntary gift or transfer of ownership of an asset from a donor to a recipient during the donor’s lifetime, without expecting any payment or compensation.

Key characteristics of hibah:

Takes effect while the donor is alive
Voluntary and unconditional
No payment required
Immediate transfer of ownership

Example:

A father transfers ownership of his house to his daughter while he is still alive. The daughter becomes the legal owner immediately.

This asset will no longer be part of the father’s estate after his death.


SECTION 2: DEFINITION OF FARAID

Faraid refers to the Islamic inheritance system that distributes a deceased person’s estate among eligible heirs according to fixed proportions prescribed in the Quran and Islamic law.

Key characteristics of faraid:

Takes effect after death
Distribution is mandatory
Shares are fixed by Islamic law
Cannot be changed based on personal preference

Example:

When a man dies, his assets are distributed among his wife, children, and parents according to Islamic inheritance rules.


SECTION 3: SOURCE OF AUTHORITY

Hibah:

Based on voluntary decision of the donor
Permitted in Islamic law
Donor has full authority

Faraid:

Based on Quran and Islamic law
Mandatory distribution system
No personal control after death

Faraid is mentioned specifically in Surah An-Nisa.


SECTION 4: TIMING OF OWNERSHIP TRANSFER

Hibah:

Ownership transfer occurs immediately during the donor’s lifetime

Faraid:

Ownership transfer occurs only after death

This is the most important difference.


SECTION 5: CONTROL OVER ASSET DISTRIBUTION

Hibah:

Donor has full control
Donor chooses who receives the asset

Faraid:

No control after death
Distribution follows Islamic law

The deceased cannot change faraid distribution.


SECTION 6: ELIGIBLE RECIPIENTS

Hibah:

Can be given to anyone, including:

Children
Spouse
Friends
Adopted children
Non-family members

Faraid:

Only legal Islamic heirs can receive inheritance, including:

Spouse
Biological children
Parents

Adopted children do not automatically qualify under faraid.


SECTION 7: FLEXIBILITY OF DISTRIBUTION

Hibah:

Flexible
Donor can give entire asset to one person

Faraid:

Not flexible
Distribution follows fixed proportions

Example:

Son receives double the share of daughter.


SECTION 8: LEGAL AND ADMINISTRATIVE PROCESS

Hibah:

Transfer occurs during lifetime
No inheritance process required

Faraid:

Requires inheritance process
Estate administration required

May involve court and legal procedures.


SECTION 9: RISK OF ASSET FREEZING

Hibah:

No freezing of assets
Ownership already transferred

Faraid:

Assets may be frozen temporarily
Until inheritance process is completed

This may delay access to assets.


SECTION 10: PURPOSE AND OBJECTIVES

Purpose of hibah:

Protect specific individuals
Provide immediate financial security
Avoid inheritance disputes

Purpose of faraid:

Ensure fair and just distribution
Protect rights of all legal heirs

Both serve important roles.


SECTION 11: REAL-LIFE EXAMPLE COMPARISON

Scenario without hibah:

A husband dies leaving a house.

The house will be distributed among:

Wife
Children
Parents

Wife may not receive full ownership.

Scenario with hibah:

If husband transfers house to wife through hibah while alive:

Wife becomes full owner
House is not part of inheritance


SECTION 12: ADVANTAGES OF HIBAH

Provides control over asset distribution
Protects spouse and dependents
Avoids inheritance disputes
Ensures faster ownership transfer
Avoids legal delays


SECTION 13: ADVANTAGES OF FARAID

Ensures fair and balanced distribution
Protects rights of all heirs
Prevents unfair exclusion

It is divinely prescribed.


SECTION 14: CAN HIBAH AND FARAID BE USED TOGETHER?

Yes.

Example:

Some assets transferred through hibah
Remaining assets distributed through faraid

This is common in estate planning.


SECTION 15: LEGAL RECOGNITION IN MODERN SYSTEMS

Hibah is legally recognized in many Islamic countries including Malaysia.

It is often used in:

Property transfer
Takaful nomination
Trust planning

Faraid remains the default inheritance system.


SECTION 16: SUMMARY TABLE OF DIFFERENCES

Timing:

Hibah: During lifetime
Faraid: After death

Control:

Hibah: Full control by donor
Faraid: No control after death

Recipients:

Hibah: Anyone
Faraid: Only legal heirs

Flexibility:

Hibah: Flexible
Faraid: Fixed shares

Legal process:

Hibah: Immediate transfer
Faraid: Requires inheritance process


CONCLUSION

Hibah and faraid are both important tools in Islamic wealth distribution, but they serve different purposes.

Hibah provides flexibility and control during the donor’s lifetime, while faraid ensures fair and mandatory inheritance distribution after death.

Understanding both systems allows individuals to plan their estate effectively, protect their loved ones, and comply with Islamic principles.

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