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Are trusts permissible?

Answered as per Hanafi Fiqh by Darulfiqh.com

I have noticed that many businessmen are establishing trusts.  Are trusts permissible? As most trusts seem to continue indefinitely- even after the donor has passed away.


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


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


A trust is used as a mechanism for tax exemption.  It is permissible to establish a trust as long as it is in conformity with the Shariah laws of inheritance.  We advise you to contact a competent Alim or Mufti to help devise a Shariah compliant trust.  You may forward your draft to the Darul Iftaa to check the trust’s Shariah compliancy.


And Allah Ta’āla Knows Best

Mawlana Faraz Ibn Adam,
Student Darul Iftaa

Leicester, United Kingdom


Checked and Approved by,
Mufti Ebrahim Desai.


This answer was collected from DarulFiqh.com, which is operated under the supervision of Mufti Faraz ibn Adam al-Mahmudi, the student of world renowned Mufti Ebrahim Desai (Hafizahullah).