Question:
SALAAMS MUFTI SAAB
A man was in difficulty in is business. He transferred the business into his wife’s name for convenience . A few years later the man passes away Does the business go into the Estate or it belongs to the wife. The wife says the business belongs to her but she did not pay for it
SALAAMS
Answer:
Generally, people transfer their properties and businesses to their close ones to avoid tax payment. Should the entire empire remain in one person’s possession, he / she will be entitled to pay the full amount of tax. If the man transferred his business into his wife’s name with this intention, to avoid tax payment and not to completely make her the owner, the business remains his own and therefore enters the estate.
And Allah Ta’ala knows best
Nezaam bin Yahya Ali
Attested to as correct by:
Mufti Muhammad Ashraf
Darul Iftaa
Jameah Mahmoodiyah
Springs
31 May 2005
22 Rabee’uth Thaani 1426