In the name of Allah, the most Beneficent, the most Merciful.
It would be advisable to look at the aforementioned Masala in order.
First of all the money one has stored in the bank is halal, however the interest, which has been accumulated on that money, is haram. I will mention later on in the fatwa what one should do with it.
The profit one has gained from his investment in the shares should also be included when distributing the deceased’s wealth. Similarly half of the current price of the house should also be included in the deceased’s wealth. (Nizamul Fatawa P213)
In regards to life insurance, the correct view is that it is haraam in Islam. There are three reasons for the impermissibility of this:
- Interest
The Holy Prophet of Allah Sallallahu Alahi Wasalam has said, “To take one dirham of interest knowingly is worse than committing adultery 36 times.” (Mishkaatul-Masaabeeh P246 v1)
- There is an element of deception. The insurance contract contains uncertainty due to the amount being paid is not fixed and the time it will occur also being uncertain.
The Prophet of Allah Sallallahu Alahi Wasalam has “forbade deception and uncertainty in transactions.” (Sunan Tirmizi P233 v1)
- Gambling
Insurance policies require payment of money, thereafter if the following mishaps were to occur a payment would be made. This is a pure form of gambling. (Raddul Muhtar p577 v9)
Therefore the lump sum one has received as life insurance should not be included in the distributing of the deceased’s wealth. However the money your father gave in instalments every month is considered halal, hence, should be included in the distribution of the wealth.
NHS pensions can have three scenarios. The government by law deduct a certain amount from the employee’s salary every month or year etc…The lump sum given here will not be considered as interest but a bonus from the employer hence it will be considered halal and included in the deceased’s wealth.
The second scenario is that the employer invested the money into a firm or company; because the employee had no say in this he is able to keep the whole sum, thus included in the wealth. However it is preferable for the employee to avoid it and give the amount to the poor as sadqah without the intention of reward. (See Raddul Muhtar P553 v9)
The third situation is that the employer himself deducts a certain amount of his wage towards a pension fund. The lump sum received in this situation will be considered haraam, thus not included in the deceased’s wealth. However the money he contributed initially is halal, hence should be included in the deceased’s wealth. (Fatawa Rahmiyah P152 v 3)
If it is possible to differentiate between the halal and haram money according to what I have mentioned above, then one should do it. The halal money should be distributed amongst the heirs in the following way and the haraam money should be given to the poor without the intention of reward. (See Raddul Muhtar p.553 v.9). If this is not possible then if the majority of the money is halal then the deceased’s wealth will be considered halal as well. (Kifayatul Mufti p289 v8)
The deceased’s wealth should be distributed in the following way:
5 7, 40
Father
3 Daughters 1 Son Mother/Wife
3 5 2 1
_____ _____ ____
21 14 5
The total inheritance of the deceased’s wealth should be distributed into 40 shares with the mother receiving 5 shares of the total wealth, the son will receive 14 shares and each of the 3 daughters will receive 7 shares each.
Only Allah Knows Best
Mohammed Tosir Miah
Darul Ifta Birmingham