The Islamic Trust (Waaf)
The Islamic Trust (Waaf)- This marks the use of an act of trust in entrusting the management and administration of one's estate in perpetuity to others for the benefit of Muslims. The rule governing the distribution of assets held by Muslims is the Islamic Law of Inheritance better known as "Faraid" is adhered to and this covers three principles:
- The principle of Waqf (endowment) is an act of leaving assets such as land for the benefit of ‘Muslims at large’. Under waqf, revenues often go to finance mosques.
- The principle of Hibah (literally 'gift'), being a voluntary transfer of an asset by a person during his lifetime to another without consideration.
- The principle of Wadiah (safe keeping) which has long been practised by Muslims.
The basis of Faraid is prescribed precisely in the Qur’an and only applies when a person dies. Only spouses and those who are related to the deceased by blood (kinship) will be entitled to inherit the estate of a deceased person. Muslims who wish to give away their assets during their lifetime hall do it under the provision of Waqf or Hibah.