Transferring assets into a trust

Answered according to Hanafi Fiqh by

Is it permissible to transfer all of one’s assets into an “inter vivos discretionary trust”, for estate and tax planning.

And if permissible, how will the Islamic law of inheritance apply.


In the Name of Allaah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

It is permissible to use the intervivos discretionary trust facility for estate and tax planning. You should add a clause in the trust stating that in the event of your demise, your estate should be distributed according to the Shari’ah laws of Inheritance and Succession. We advise to have the trust examined by a Mufti to ensure that no clause of the trust is against Shari’ah.

And Allaah Ta’aala Knows Best

Muhammed Al-Ameen Bin Moulana Ismail Akoo

Student, Darul Iftaa

Newcastle; KZN, South Africa

Checked and Approved by,
Mufti Ebrahim Desai.

This answer was collected from, which is operated under the supervision of Mufti Ebrahim Desai from South Africa.

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