A modern Muslim’s guide to estate planning

One moment, Ahmed was laughing with his children over breakfast; the next, he was gone.

The whirlwind of his family’s grief was quickly followed by an avalanche of bills and bureaucracy. The funeral director quoted €4,800, probate fees totaled €5,000 to access Ahmed's frozen accounts. Add to that unpaid loans and Ahmed’s savings left his family less than a month’s rent.

Ahmed’s experience is not uncommon; the average cost of death is about two months' salary in the US, three months in Europe, and up to four months in Muslim countries like Malaysia. As Muslims, estate planning is an act of worship and it’s our duty to prepare for death by providing stability for our loved ones in a Shariah-compliant way. Keep reading to learn how you can protect your family and future.

The Islamic mandate for legacy planning
The Qur’an explicitly addresses inheritance in Surah An-Nisa (4:11-12), providing clear guidelines for the distribution of wealth after one’s passing. Unlike secular wills, which may allow total autonomy, the Islamic system is divinely ordained.

It ensures fairness and prevents disputes, emphasizing that estate planning is not just a practical step but a spiritual duty.

The Prophet Muhammad (ﷺ) said, “It is the duty of a Muslim who has anything to bequeath not to let two nights pass without writing a will about it.” (Sahih al-Bukhari). This Hadith is a powerful reminder that preparing for our departure is not morbid; it is an act of foresight and responsibility.

Protecting wealth the Islamic way
Estate planning is not just about dividing wealth; it’s about protecting it in a way that benefits your heirs and upholds Islamic ethics.

One part of safeguarding wealth means addressing debts; an obligation that is often overlooked. The Prophet Muhammad (ﷺ) warned, “The soul of the believer is held hostage by his debt until it is paid off.” (Sunan al-Tirmidhi). 

Planning your estate ensures that outstanding obligations are settled, freeing yourself and providing peace to your family.

Shariah-compliant estate planning solutions are now more accessible than ever. Islamic wills, trusts, and inheritance calculators help Muslims navigate the complexities of dividing assets while adhering to both religious and local legal requirements. Make sure to do your research and consult reputable sources before implementing your plan.

A modern Muslim’s step-by-step plan  
 

- Leverage modern Shariah-compliant wealth solutions

Leverage modern technology to align wealth management with Islamic principles. For example, The LifeDAO offers a Shariah-compliant alternative to life insurance, providing borderless, community-driven coverage inspired by the Aqilah system of the Prophet Muhammad’s ﷺ time. This ensures financial security for your family through collective support.

Islamic will
Without a proper Islamic will, your wealth may be distributed against Shariah laws. Learn about Islamic inheritance principles and ensure your will complies with both Shariah and local laws. Consult scholars and estate planners for guidance.

Appoint guardians for children
Appoint a guardian in your will to ensure your children are raised with Islamic values. Choose someone you trust who shares your beliefs to avoid court-appointed custody decisions.

Healthcare directives
Prepare a living will to ensure your medical care aligns with Islamic principles, like prohibiting euthanasia. Discuss your preferences with family and healthcare providers.

Power of Attorney
Assign a trusted individual to manage your affairs if you’re incapacitated. Ensure they understand and follow Islamic values when making decisions on your behalf.

Charitable giving
Leave a lasting impact through sadaqah jariyah or a waqf by dedicating assets to benefit causes like education or mosques. Seek advice to comply with Shariah and local laws.

Review your estate plan
Regularly update your estate plan to reflect life changes like marriage, divorce, or children, ensuring continued alignment with Shariah.

Resting in peace begins today
As Ahmed’s story shows, planning for your departure is not a luxury for the wealthy or elderly, but a vital obligation for every Muslim. Estate planning is a vital part of our Islamic identity, deeply rooted in the values of preparation, responsibility, and compassion. The question isn’t just whether you can afford to rest in peace - it’s whether your family can afford for you not to.

By using the tools we have to address this responsibility today, we ensure that tomorrow, we leave behind not just wealth, but a legacy of love, care, and adherence to our faith.

Sharene Lee is chief operating officer and Ameerah Langer is brand & communications head at Takadao