FINANCE
Legacy Planning in Islam Deeds of merit have a lasting reward BY M. YAQUB MIRZA
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bservant Muslims seek to leave two types of legacies: those that will cause the family and kith and kin remember them positively and attain a higher status in the Afterlife. Prophet Muhammad (salla Allahu ‘alayhi wa sallam) said that, “If a Muslim plants a tree or sows seeds, and then a bird, or a person or an animal eats from it, it is regarded as a charitable gift for him” (“Sahih al-Bukhari”). Islam and Muslims want everyone to live with dignity, peace and honor. Regarding the piety-charity relationship, the Quran teaches: “It is not righteousness that you turn your faces towards East or West, but to believe in God and the Last Day, the angels, the Book, and the Messengers; to spend of your wealth, out of love for Him, for your kin, orphans, the needy, the wayfarer, those who ask, and to ransom slaves; to be steadfast in
prayer and practice regular charity; to fulfill your contracts; to be firm and patient in pain (or suffering), adversity, and throughout all periods of panic. Such are the people of truth, the God-conscious” (2:177). Islam outlines four ways to do this: zakat, sadaqa, bequests and voluntary gifts Zakat (Obligatory Charity). Those entitled to receive zakat or sadaqah are “the poor, the needy (destitute), zakat administrators, those whose hearts are to be reconciled, captives (those held in bondage), debtors, stranded travelers and in the cause of God” (9:60). The last category includes any Islamically permitted community welfare activity. Zakat is paid yearly out of one’s accumulated savings beyond one’s annual expenses. M. Umer Chapra comments, “The prescription of Zakah is a clear and unambiguous signal of the Divine desire to assure that
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no one suffers because of lack of means to acquire the essential need-fulfilling goods and services (“Islam and the Economic Challenge,” 2016; p. 271). Sadaqa (Voluntary Charity). The Quran proclaims, “They ask how much they are to spend; Say: Whatever is beyond your needs” (2:219). The Prophet used to do this and place his faith in God as the best of the providers. Giving sadaqa while alive is a preferred act of devotion. Abu Sa‘id al-Khudri said, “It is better for a man to give a dirham as sadaqa during one’s lifetime, than to give a hundred at the time of his death” (“Readings on Charity and Kindness in Islam,” 2002, p. 19). Bequests. Islam advises Muslims to write their wills. Prophet Muhammad said a person who has something to bequest cannot sleep three nights without writing a will (“Sahih Bukhari,” vol. 4, book 51, hadith no. 1). Muslims can distribute up to 1/3 of their wealth (and more if the inheritors agree) for charitable purposes or to those who aren’t legal heirs. Islam also permits Muslims to transfer up to 1/3 of their wealth to a trusted individual(s) who can manage their financial resources judiciously. In his/her role of trustee, that
