LIFE PLAN BASICS V - ARE YOU A PAGAN?
The Holy Prophet (PBUH) has said that a person who dies having made a 'good will' dies the death of a martyr and one who dies without having made such a will dies the death of a pagan.
"You can't afford to die; if you do not know what you want to do with your property"!
What is estate planning:Estate planning is the process of anticipating and arranging for the disposal of your estate before your death. An estate is the net worth of a person.
Why you need an estate plan?
Death is burhaq (for sure). If you postpone planning for your demise until it is too late, you run the risk that your intended beneficiaries -- those whom you love the most -- may not receive what you would want them to receive whether due to extra administration costs, unnecessary taxes or squabbling among your heirs. It is your duty to make sure those who deserve their part of your estate must not be deprived.
Remember, US law of inherence supersedes Islamic laws, so if you want to distribute your wealth according to Islamic laws you have to specify it in your will (Quran Surah 4, verse 13 & 14).
No matter how small your estate is, a properly planned estate will:
- Provide support and financial stability for your surviving spouse, children, and grandchildren.
- Preserve your wealth for later generations.
- Make sure your wishes are carried out when you can no longer manage your affairs. It's important to have both a power of attorney and a living will. (discussed in the last issue)
- Support a favorite charity or cause with a gift of money, securities, or other property.
- Distribute assets in a timely fashion, with a minimum of legal hassle.
- Minimize taxes and expenses that can go along with transferring assets.
- Provide enough cash to meet expenses and prevent the forced sale of assets.
- Avoid problems for your loved ones by ensuring that the beneficiaries named on your life insurance and retirement plans are still the people you want to benefit.
- Protect your family's privacy with an estate plan designed to prevent your will from becoming public record.
- Set and meet expectations of your survivors so there is no confusion or misunderstanding.
Next week: what should estate plan consist!
NOTE: Please consult your attorney for legal opinion. This information is compiled from various sources.