Question:
Recently I have been looking into sorting out my will and I have come to know that as soon as I am dead inheritance tax will be paid from my estate. anything above £325,000 (three hundred and twenty five thousand pounds sterling) is taxable at a hefty 40%.
Many muslims here in the UK have an estate worth than £325 000, for most people the price of the house exceeds that amount. My estate, is far more than £325,000. At the moment my estate is worth £18.4 million pounds sterling and so my estate will be taxed in excess of £7 million pounds.
It is true that my inheritors will be able to pay off the tax by selling off my assets and will not have to pay from their own pocket and they will not be left in a dire situation, but the amount is extremely heavy nonetheless.
If I was to “gift” some of my assets to my inheritors by law – transfer the title-deeds to the names of my inheritors – will I remain the owner islamically?
Even so this option is not the most viable option for me mainly because of two reasons:
1) I am not sure that my inheritors will understand and I cannot guarantee that they will allow me continue to continue my ownership.
2) Even if I was to be “gift”, and die before 7 years have passed, the gift will still be subject to the tax and counted as part of my estate. It is a sliding scale/ taper relief and the rate of Inheritance Tax they will pay gradually reduces over the seven-year period. For example if I l die 6 years after gifting 80% of the tax will be reduced but if I die within the first 3 years of gifting there will be no reduction. This is referred to a “potentially exempt transfer”.
I have concluded – after discussing with professionals – that the best solution is to invest in a life insurance policy in a trust, life insurance is not a must here in the UK, but by having life insurance means the insurance company will pay for the inheritance tax upon my death. I will have to continue paying the premiums as long as I live.
Given the circumstances, will it be permissible for me to get the life insurance and avoid such an oppressive tax?
Answer:
1. Among the conditions for the gifting of an item to be complete, is the following:
A. There must be some factor exposing one’s intention of it being a gift. For example, verbally offering an item as a gift and after the giftee accepts the offer, he should take possession of the item. Handing over an item to a friend in such a manner that it is mutually understood to be a gift, will also be sufficient to be considered as a gift according to Shari’ah, even though no words are uttered verbally by the two parties.
B. It is necessary for the one that is gifting the item to allow the person who the item is gifted to, to take physical possession of the item, if possible. If this is not possible, as is the case with fixed assets/properties, then one is required to remove all ones possessions from the property and to then transfer ownership of the property to the other person, which can take place inter-alia, by handing the keys over to the other person.
Hence, if you transfer the title deeds of a property onto the name of any of your heirs, merely to evade an oppressive tax, the property will remain in your ownership according to Shari’ah. However this could lead to misunderstanding later on. Therefore when you are transferring the title deeds onto the name/s of your heirs, you should write down that you are not gifting the property to them, rather you are merely transferring the title deeds onto the name of so and so, in order to evade taxation. This must be written down in the presence of two male witnesses and signed by you as well as them.
If you fear that the heirs will then have the ability to seize and dispose of the properties because the title deeds are on their name/s; then you can keep the title deeds in your possession. Alternately, you can keep a few of the properties on your name and transfer the remainder onto the name/s of your heirs, (obviously without gifting it to them, as mentioned above)
2. As far as your second query is concerned, based on the particulars furnished by you, we conclude that it will not be permissible for you to enter into a contract of life insurance, due to the element of ((ربا interest, (قمار) gambling and (غرر) uncertainty being present. One should rather bear the little difficulty of this world, and be saved from the suffering of the grave and the Hereafter; the tests of this world are insignificant compared to the severe punishment of Allah Ta’ala. Of course, you will have to exercise patience, especially since it is your hard-earned wealth that might be oppressively taken away from you. However, this is the test that has been given to you, and Allah Ta’ala wants to see if you give preference to His happiness or you displease Him, merely in an attempt to protect your wealth. It is highly possible, that Allah Ta’ala appreciates this one action of yours and admits you into Jannah. Let it not be that you fail this test, and enter among those who Allah Ta’ala mentions regarding them:
{يأيها الَّذِينَ آمَنُوا اتَّقُوا اللَّه وَذَرُوا مَا بَقِيَ مِنْ الرِّبَا إنْ كُنْتُمْ مُؤْمِنِينَ. فَإِنْ لَمْ تَفْعَلُوا فَأْذَنُوا بحَرْبٍ مِنْ اللَّه وَرَسُوله}
Translation: O those who have believed! Fear Allah and abandon whatever interest remains, if you are believers.
However if you do not do so, then be informed of a war with Allah and his Messenger (Sallallahu Alaihi Wasallam).
(Chapter 2 / verse 278-279)
[1] (وَشَرَائِطُ صِحَّتِهَا فِي الْوَاهِبِ الْعَقْلُ وَالْبُلُوغُ وَالْمِلْكُ) فَلَا تَصِحُّ هِبَةُ صَغِيرٍ وَرَقِيقٍ، وَلَوْ مُكَاتَبًا. وَ شَرَائِطُ صِحَّتِهَا (فِي الْمَوْهُوبِ أَنْ يَكُونَ مَقْبُوضًا غَيْرَ مَشَاعٍ مُمَيَّزًا غَيْرَ مَشْغُولٍ) كَمَا سَيَتَّضِحُ. (وَرُكْنُهَا) هُوَ (الْإِيجَابُ وَالْقَبُولُ) كَمَا سَيَجِيءُ. (الدر المختار – دار الفكر بيروت الطبعة: الثانية – جلد 5 / صفحة 687-688)
(قَوْلُهُ: صِحَّتِهَا) أَيْ بَقَائِهَا عَلَى الصِّحَّةِ كَمَا سَيَأْتِي (قَوْلُهُ مَقْبُوضًا) رَجُلٌ أُضَلَّ لُؤْلُؤَةً فَوَهَبَهَا لِآخَرَ وَسَلَّطَهُ عَلَى طَلَبِهَا وَقَبْضِهَا مَتَى وَجَدَهَا. قَالَ أَبُو يُوسُفَ: هَذِهِ هِبَةٌ فَاسِدَةٌ لِأَنَّهَا عَلَى خَطَرٍ، وَالْهِبَةُ لَا تَصِحُّ مَعَ الْخَطَرِ، وَقَالَ زُفَرُ: تَجُوزُ خَانِيَّةٌ (قَوْلُهُ: هُوَ الْإِيجَابُ) وَفِي خِزَانَةِ الْفَتَاوَى: إذَا دَفَعَ لِابْنِهِ مَالًا فَتَصَرَّفَ فِيهِ الِابْنُ يَكُونُ لِلْأَبِ إلَّا إذَا دَلَّتْ دَلَالَةُ التَّمْلِيك بِيرِيٌّ. قُلْت: فَقَدْ أَفَادَ أَنَّ التَّلَفُّظَ بِالْإِيجَابِ وَالْقَبُولِ لَا يُشْتَرَطُ، بَلْ تَكْفِي الْقَرَائِنُ الدَّالَّةُ عَلَى التَّمْلِيكِ كَمَنْ دَفَعَ لِفَقِيرٍ شَيْئًا وَقَبَضَهُ، وَلَمْ يَتَلَفَّظْ وَاحِدٌ مِنْهُمَا بِشَيْءٍ، وَكَذَا يَقَعُ فِي الْهِدَايَةِ وَنَحْوِهَا فَاحْفَظْهُ، وَمِثْلُهُ مَا يَدْفَعُهُ لِزَوْجَتِهِ أَوْ غَيْرِهَا قَالَ: وَهَبْت مِنْكِ هَذِهِ الْعَيْنَ فَقَبَضَهَا الْمَوْهُوبُ لَهُ بِحَضْرَةِ الْوَاهِبِ وَلَمْ يَقُلْ: قَبِلْت، صَحَّ لِأَنَّ الْقَبْضَ فِي بَابِ الْهِبَةِ جَارٍ مَجْرَى الرُّكْنِ فَصَارَ كَالْقَبُولِ وَلْوَالِجِيَّةٌ. وَفِي شَرْحِ الْمَجْمَعِ لِابْنِ مَلَكٍ عَنْ الْمُحِيطِ: لَوْ كَانَ أَمْرُهُ بِالْقَبْضِ حِينَ وَهَبَ لَا يَتَقَيَّدُ بِالْمَجْلِسِ وَيَجُوزُ قَبْضُهُ بَعْدَهُ (قَوْلُهُ: وَالْقَبُولُ) فِيهِ خِلَافٌ فَفِي الْقُهُسْتَانِيِّ: وَتَصِحُّ الْهِبَةُ بِكَ وَهَبْت وَفِيهِ دَلَالَةٌ عَلَى أَنَّ الْقَبُولَ لَيْسَ بِرُكْنٍ كَمَا أَشَارَ إلَيْهِ فِي الْخُلَاصَةِ وَغَيْرِهَا. وَذَكَرَ الْكَرْمَانِيُّ أَنَّ الْإِيجَابَ فِي الْهِبَةِ عَقْدٌ تَامٌّ. (حاشية ابن عابدين – دار الفكر بيروت الطبعة: الثانية – جلد 5 / صفحة 688)
(وَالتَّمَكُّنُ مِنْ الْقَبْضِ كَالْقَبْضِ فَلَوْ وَهَبَ لِرَجُلٍ ثِيَابًا فِي صُنْدُوقٍ مُقْفَلٍ وَدَفَعَ إلَيْهِ الصُّنْدُوقَ لَمْ يَكُنْ قَبْضًا) لِعَدَمِ تَمَكُّنِهِ مِنْ الْقَبْضِ (وَإِنْ مَفْتُوحًا كَانَ قَبْضًا لِتَمَكُّنِهِ مِنْهُ) فَإِنَّهُ كَالتَّخْلِيَةِ فِي الْبَيْعِ اخْتِيَارٌ وَفِي الدُّرَرِ وَالْمُخْتَارُ صِحَّتُهُ بِالتَّخْلِيَةِ فِي صَحِيحِ الْهِبَةِ لَا فَاسِدِهَا. (الدر المختار – دار الفكر بيروت الطبعة: الثانية – جلد 5 / صفحة 691)
[1] وَبَيْعِ التَّلْجِئَةِ وَيَأْتِي مَتْنًا فِي الْإِقْرَارِ، وَهُوَ أَنْ يُظْهِرَا عَقْدًا وَهُمَا لَا يُرِيدَانِهِ يُلْجَأُ إلَيْهِ لِخَوْفِ عَدُوٍّ وَهُوَ لَيْسَ بِبَيْعٍ فِي الْحَقِيقَةِ بَلْ كَالْهَزْلِ كَمَا بَسَطْته فِي آخِرِ شَرْحِي عَلَى الْمَنَارِ. (الدر المختار – دار الفكر بيروت الطبعة: الثانية – جلد 5 / صفحة 273)
(قَوْلُهُ: وَبَيْعُ التَّلْجِئَةِ) هِيَ مَا أُلْجِئَ إلَيْهِ الْإِنْسَانُ بِغَيْرِ اخْتِيَارِهِ، وَذَلِكَ أَنْ يَخَافَ الرَّجُلُ السُّلْطَانَ فَيَقُولَ لِآخَرَ إنِّي أُظْهِرُ أَنِّي بِعْت دَارِي مِنْك، وَلَيْسَ بِبَيْعٍ فِي الْحَقِيقَةِ وَإِنَّمَا هُوَ تَلْجِئَةٌ وَيُشْهِدُ عَلَى ذَلِكَ مُغْرِبٌ. (قَوْلُهُ: بَلْ كَالْهَزْلِ) أَيْ فِي حَقِّ الْأَحْكَامِ وَالْهَزْلُ كَمَا فِي الْمَنَارِ هُوَ أَنْ يُرَادَ بِالشَّيْءِ مَا لَمْ يُوضَعْ لَهُ وَلَا مَا يَصْلُحُ اللَّفْظُ لَهُ اسْتِعَارَةً، وَهُوَ ضِدُّ الْجِدِّ: وَهُوَ أَنْ يُرَادَ مَا وُضِعَ لَهُ أَوْ مَا صَلُحَ أَنَّهُ يُنَافِي اخْتِيَارَ الْحُكْمِ وَالرِّضَا بِهِ، وَلَا يُنَافِي الرِّضَا بِالْمُبَاشَرَةِ وَاخْتِيَارَ الْمُبَاشَرَةِ فَصَارَ بِمَعْنَى خِيَارِ الشَّرْطِ فِي الْبَيْعِ، وَشَرْطُهُ أَنْ يَكُونَ صَرِيحًا مَشْرُوطًا بِاللِّسَانِ: أَيْ بِأَنْ يَقُولَ إنِّي أَبِيعُ هَازِلًا إلَّا أَنَّهُ يُشْتَرَطُ ذِكْرُهُ فِي الْعَقْدِ، بِخِلَافِ خِيَارِ الشَّرْطِ اهـ، فَالْهَزْلُ أَعَمُّ مِنْ التَّلْجِئَةِ؛ لِأَنَّهُ يَجُوزُ أَنْ لَا يَكُونَ مُضْطَرًّا إلَيْهِ وَأَنْ يَكُونَ سَابِقًا وَمُقَارِنًا، وَالتَّلْجِئَةُ إنَّمَا تَكُونُ عَنْ اضْطِرَارٍ وَلَا تَكُونُ مُقَارِنَةً كَذَا قِيلَ، وَالْأَظْهَرُ أَنَّهُمَا سَوَاءٌ فِي الِاصْطِلَاحِ كَمَا قَالَ فَخْرُ الْإِسْلَامِ: التَّلْجِئَةُ هِيَ الْهَزْلُ، وَكَذَا فِي جَامِعِ الْأَسْرَارِ عَلَى الْمَنَارِ لِلْكَاكِيِّ، ثُمَّ اعْلَمْ أَنَّ التَّلْجِئَةَ تَكُونُ فِي الْإِنْشَاءِ وَفِي الْإِخْبَارِ كَالْإِقْرَارِ، وَفِي الِاعْتِقَادِ كَالرِّدَّةِ وَالْأَوَّلُ قِسْمَانِ: مَا يَحْتَمِلُ الْفَسْخَ وَمَا لَا كَالطَّلَاقِ وَالْعَتَاقِ، وَقَدْ بَسَطَ ذَلِكَ كُلَّهُ فِي الْمَنَارِ، وَالْغَرَضُ الْآنَ بَيَانُ الْإِنْشَاءِ الْمُحْتَمِلِ لِلْفَسْخِ كَالْبَيْعِ وَهُوَ ثَلَاثَةُ أَقْسَامٍ؛ لِأَنَّهُ إمَّا أَنْ يَكُونَ الْهَزْلُ فِي أَصْلِ الْعَقْدِ، أَوْ فِي قَدْرِ الثَّمَنِ، أَوْ جِنْسِهِ. (حاشية ابن عابدين – دار الفكر بيروت الطبعة: الثانية – جلد 5 / صفحة 273)
[1] بَابُ الرِّبَا هُوَ لُغَةً: مُطْلَقُ الزِّيَادَةِ وَشَرْعًا (فَضْلٌ) وَلَوْ حُكْمًا فَدَخَلَ رِبَا النَّسِيئَةِ. (الدر المختار – دار الفكر بيروت الطبعة: الثانية – جلد 5 / صفحة 168)
(قَوْلُهُ وَلَوْ حُكْمًا إلَخْ) تَبِعَ فِيهِ النَّهْرَ لَكِنَّهُ لَا يُنَاسِبُ تَعْرِيفَ الْمُصَنِّفِ فَإِنَّهُ قَيَّدَهُ بِكَوْنِهِ بِمِعْيَارٍ شَرْعِيٍّ وَهَذَا لَا يَدْخُلُ فِيهِ رِبَا النَّسِيئَةِ وَلَا الْبَيْعُ الْفَاسِدُ، إلَّا إذَا كَانَ فَسَادُهُ لِعِلَّةِ الرِّبَا فَالظَّاهِرُ مِنْ كَلَامِ الْمُصَنِّفِ تَعْرِيفُ رِبَا الْفَضْلِ، لِأَنَّهُ هُوَ الْمُتَبَادَرُ عِنْدَ الْإِطْلَاقِ، وَلِذَا قَالَ فِي الْبَحْرِ فَضْلُ أَحَدِ الْمُتَجَانِسَيْنِ. نَعَمْ هَذَا يُنَاسِبُ تَعْرِيفَ الْكَنْزِ بِقَوْلِهِ فَضْلُ مَالٍ بِلَا عِوَضٍ فِي مُعَاوَضَةِ مَالٍ بِمَالٍ اهـ فَإِنَّ الْأَجَلَ فِي أَحَدِ الْعِوَضَيْنِ فَضْلٌ حُكْمِيٌّ بِلَا عِوَضٍ، وَلَمَّا كَانَ الْأَجَلُ يُقْصَدُ لَهُ زِيَادَةُ الْعِوَضِ كَمَا مَرَّ فِي الْمُرَابَحَةِ صَحَّ وَصْفُهُ بِكَوْنِهِ فَضْلَ مَالٍ حُكْمًا تَأَمَّلْ. (حاشية ابن عابدين – دار الفكر بيروت الطبعة: الثانية – جلد 5 / صفحة168)
الْقمار مِنْ الْقَمَرِ الَّذِي يَزْدَادُ تَارَةً وَيَنْقُصُ أُخْرَى، وَسُمِّيَ الْقِمَارُ قِمَارًا لِأَنَّ كُلَّ وَاحِدٍ مِنْ الْمُقَامِرَيْنِ مِمَّنْ يَجُوزُ أَنْ يَذْهَبَ مَالُهُ إلَى صَاحِبِهِ، وَيَجُوزُ أَنْ يَسْتَفِيدَ مَالَ صَاحِبِهِ وَهُوَ حَرَامٌ بِالنَّصِّ، وَلَا كَذَلِكَ إذَا شُرِطَ مِنْ جَانِبٍ وَاحِدٍ لِأَنَّ الزِّيَادَةَ وَالنُّقْصَانَ لَا تُمْكِنُ فِيهِمَا بَلْ فِي أَحَدِهِمَا تُمْكِنُ الزِّيَادَةُ، وَفِي الْآخَرِ الِانْتِقَاصُ فَقَطْ فَلَا تَكُونُ مُقَامَرَةً لِأَنَّهَا مُفَاعَلَةٌ مِنْهُ زَيْلَعِيٌّ. (حاشية ابن عابدين – دار الفكر بيروت الطبعة: الثانية – جلد 6 / صفحة 403)
قلنا: الغرر ما كان الغالب منه عدم السلامة. (التجريد للقدوري – دار السلام القاهرة الطبعة: الثانية – جلد 5 / صفحة 2219)