Aliyawanders

Let me share a story about a client who wanted to ensure her family home stayed with her loved ones without financial complications. Passing on property isn’t always straightforward, especially when faraid and housing loans come into play.  

Why She Doesn’t Choose The Conditional Hibah Route

At first, she considered a conditional hibah for her house, but it wasn’t the best fit. Here’s why:  

1. Mortgage Takaful Gaps

   Her Mortgage Level Term Takaful (MLTT) coverage wasn’t enough to fully settle the loan. Even worse, the policy could be cancelled if the Takaful operator found any a pre-existing condition later which she wasn’t aware off. Without full coverage, the house couldn’t be fully gifted, making hibah uncertain.  

2. Bank Approval Issues

   Conditional hibah requires the bank’s consent and meeting their conditions, which is not guaranteed.  

3. Faraid Complexities

   If the loan isn’t fully cleared, the house becomes part of the faraid distribution. The complication? Faraid is calculated on the current market value, even if selling below that price is unavoidable. This could pressure heirs to sell the house just to fulfill obligations.  

The Solution: Takaful for Faraid Buy-Back

We crafted a plan to simplify everything:  

1. Takaful Coverage

   She took a takaful plan covering death, total and permanent disability and critical illness, ensuring the payout matched or exceeded the faraid portions owed to heirs. The total and permanent disability (TPD) and critical illness coverage are there to replace her income if life throws her a curveball and she can’t work.

2. Hibah Nomination

   The takaful proceeds were assigned via hibah to a beneficiary. This person could use the money to pay other heirs’ faraid shares, freeing up the property.  

3. Flexibility for the Heirs

   The beneficiary now had options: keep the house by settling the faraid shares or sell the property and divide the funds.  

The Outcome

This approach gave her peace of mind. She avoided the risks of conditional hibah and ensured her family could keep their home without disputes.  

Why This Works

This strategy respects Islamic principles and offers a practical way to protect loved ones from unnecessary financial and emotional stress. It’s not just estate planning – it’s about ensuring harmony and stability.  

If you’re exploring options to secure your property, this plan might just be what you need. For further consultation, I could be reached at 012 223 1623 or click here to WhatsApp me http://askaliyahow.wasap.my/

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