Respected Ulama Your valued assistance in the following matter is required. Inheritance facts established (1) my late brother was employed by Edgars and had a compulsory pension policy with them. (2) At retirement he was compelled to invest (two thirds) of the payout in a compulsory monthly pension return based portfolio with a registered financial institution of his choice. (3) He chose to invest with : (i) Oasis (living annuity) and (ii) Sanlam (living annuity). These investments were in line with compulsory regulations for Pension, Provident, Retirement Annuity and Preservation funds in South Africa and thus he had no choice but to comply. (4) One third of the payout was cashed in by him for his use. (5) My brother was not married and had no children. (6) He had no will in place. (7) For both the above mentioned annuities he nominated one of his siblings as the sole (100%) beneficiary.
Question for distribution purposes, does the payout go to the estate of my late brother or the appointed beneficiary?
بسم الله الرحمن الرحيم
The person (brother) did not become owner though he was nominated as the sole 100% beneficiary, rather your deceased brother shall remain the sole owner of the whole investment. Now it will be inherited by heirs and all his Shari’ah heirs shall have their rights as per their shares. Had you been written the details of all the heirs we would have written the share of each heir.
Note: To nominate someone is not in place of hibah as it is mandatory for hibah to take place that the gifted thing is given into his/her complete possession which is missing here. Similarly, it is not in place of a will as will is not valid in favour of a heir.
Allah knows Best!
Darul Uloom Deoband