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Anyone with experience setting up living trust?

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asked on Jun 7, 2020 at 20:28
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edited on May 6, 2021 at 21:03
 
I would like to know if creating a living trust with less than a million cash be worth it?

Someone told me that listing a house in a living trust is expensive and a big hassle. True?

Someone (not a lawyer) told me that a living trust applies to Muslims and non Muslims but another person with experience in dealing with inheritances said that it can be challenged if the donor (?) my cousin in this case is Muslim. Something to do with avoiding faraid.

Appreciate some pointers, especially if you have a living trust.
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5 Answers

answered on Jun 8, 2020 at 09:41
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edited May 6, 2021 at 21:20
 
@marigold

Commenting as a layman.

Living Trust is also as "Leaving Trust".

In Malaysia, the inhabitants are either Muslims or non-Muslims. Inheritances in Malaysia for Muslims and non-Muslims differ slightly.

Living Trust created by Muslims has to be Shariah Law compliance otherwise it can be contested/challenged.

Example:
1.  A man is a non-Muslim, has a family of several children, converted to a Muslim, remarried has an extended family. An inheritance on property will raise complications. It is not practical for a non-Muslim to live together in the same bungalow.

2.  The above situation is made complicated if the property is under "Malay Reserved Land" of which a non-Muslim name can never be added by "Land Laws".

Get the services of a competent Shariah law practicing lawyer.
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answered on Jun 8, 2020 at 11:02
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Thank you @jeff005

I need an opinion: would one of those trustee firms be preferable to Shariah lawyers in inheritance cases? 

I have read quite a few firms including Amanah Raya - gov linked offering their 'products', yet there are lawyers who wrote that their 'hibah' product can be challenged. One man who had retired from a shariah court said there is a decades old case on a property assigned through hibah. 
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answered on Jun 8, 2020 at 12:34
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edited May 6, 2021 at 21:22
 
@marigold

Sorry, I do not know what is "faraid" or "hibah". There are also many other "term". As a non-Muslim, even If I have read, I'm not permitted to comment on Shariah Laws (by Laws).

I need an opinion: would one of those trustee firms be preferable to Shariah lawyers in inheritance cases? 
Just find a firm which has the two set of specialists sitting in the Board of Directors.
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answered on Jun 8, 2020 at 12:46
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edited May 6, 2021 at 21:25
 
@marigold

offering their 'products'

All financial Products offered by Islamic banking are Shariah compliant. It is some unique personal circumstances (undeclared) that causes issues.
Example:
A Muslim man can have 4 wives. But can also have divorces so as to comply to the maximum of 4 wives. There can be many step children involved on inheritances. These are unique cases can happen to very rich people and religious individuals (hic..!!).

The term "RIBA".. (I'm not sure how it works) is another challenge to Islamic banking.
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answered on Jun 8, 2020 at 22:53
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edited May 6, 2021 at 21:23
 
@jeff005
I have read a fair bit on faraid - division of inheritance according to Islam. Still reading on hibah.

Thank you, will check the 'composite' of the firms.
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