Insights

What does Islam say about wills? “It is prescribed, when death approaches any of you, if he leaves wealth that he make a bequest to parents and next of kin, according to reasonable usage; this is due from the Allah-fearing.” (Surah Al-Baqarah 2:180). “It is not permissible for any Muslim who has something to will, to stay for two nights without having his last will and testament written and kept ready with him.” (Sahih Al-Bukhari, Volume 4: Book 55, Chapter 1). Narrated by Sa’d bin Abi Waqqas : “The Prophet (saw) came visiting me while I was sick in Makkah. I said, “O Allah’s Messenger! May I will all my property (in charity)?” He said, “No.” I said, “Then may I will half of it?” He said, “No.” I said, “One-third?” He said, “Yes, one third, yet even...

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Did you know that the World Health Organization estimates that 1 in 6 people in the world are living with a disability? These numbers are only expected to rise as non-communicable diseases and increased lifespans become more common. While most people believe that creating a will is enough for estate planning, it is actually even more important to consider the possibility of old age, illness, and disability.  A Lasting Power of Attorney (known as LPA for short) is a document that gives the attorney authority to make decisions about either a person’s property and affairs or their health and welfare.  The Mental Capacity Act 2005 allows a person (referred to as the ‘donor’ i.e. the one who gives the authority to another) to appoint one or more trusted individuals (often referred to as the ‘attorneys’ or...

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What has changed in the 2022 government budget regarding inheritance tax and what does it mean for us? The nil rate band allowance for inheritance tax remains the same until 2028. This may have gone unnoticed by most; tax increases grab the attention and the headlines but what does the status quo of the inheritance tax allowance mean for us? I will analyse the ramifications of this in more detail below. Firstly, to understand the impact of inheritance tax, we must understand what inheritance tax is. Inheritance tax, also known as ‘the death duty’, is the tax that is chargeable upon a person’s assets i.e. their property, bank accounts, cash, stocks, shares etc at the date of their death. For some, this comes as a surprise – you mean you are taxed after you die? Having...

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