Islamic estate planning guidance by Keith Tew — 13+ years experience, MDRT 7× | Penang · Butterworth · Bukit Mertajam · Seberang Jaya
Many Muslims assume their family will automatically know what to do after they pass away. Without proper planning, confusion, delays, and disputes can still happen — even when everyone has good intentions. A Wasiat is not just a document. It is your final act of responsibility to the people you love.
In my 13 years advising families across Penang, Butterworth, Bukit Mertajam and Seberang Jaya, I have met many Muslim families who believed their estate would be handled smoothly — that the family would come together, the Faraid shares would be distributed, and everyone would move on. In reality, without a written Wasiat and a clear estate plan, what I most often see is: frozen assets, months of legal proceedings, and family members disagreeing about what the deceased would have wanted.
This guide explains Wasiat, Hibah and Faraid — the three pillars of Islamic estate planning in Malaysia — and shows you how to use SnapWill to protect your family's future according to Islamic principles.
Wasiat (وصية) is an Islamic will — a written declaration by a Muslim that sets out their wishes regarding the distribution of their estate after death, within the boundaries permitted by Islamic law.
Under Islamic jurisprudence and Malaysian Syariah law, a Wasiat has specific rules:
A Wasiat can also contain important non-financial instructions: who should care for your children, how your funeral should be conducted, instructions for settling debts, and any personal messages to your family.
The Prophet Muhammad (ﷺ) said: "It is the duty of a Muslim who has anything to bequest not to let two nights pass without writing a will about it." (Sahih al-Bukhari 2738). Writing a Wasiat is not merely practical — for a Muslim with assets, it is a religious obligation.
Even with Faraid providing a built-in inheritance framework, a Wasiat is essential for several reasons:
Faraid only protects specific eligible heirs. If you have people you care about who are not Faraid heirs — a non-Muslim spouse, a stepchild you raised as your own, an elderly neighbour who depends on you, an orphan under your care — only a Wasiat ensures they receive something.
Many Muslims wish to leave a portion of their estate for charitable causes — a mosque, a school, a tahfiz program, or a welfare fund. Up to 1/3 of your estate can be directed this way through a Wasiat, creating an ongoing legacy of good deeds that continue to benefit you after death.
Without a named Wasi (executor), the courts appoint an administrator — a process that takes months and costs money. Your Wasiat can name a trusted person to carry out your wishes promptly and with minimal legal friction.
Even when Faraid shares are legally clear, disputes arise over which specific asset goes to whom, how property is valued, who manages the estate during the distribution process, and what happens to the family business. A Wasiat provides written clarity on all of these.
Who will care for your young children? Who will manage the assets held in trust for them? A Wasiat allows you to name a guardian and a trustee — two different roles with different responsibilities.
Faraid (فرائض) is the Islamic law of inheritance, derived directly from the Quran (Surah An-Nisa, 4:11–12). In Malaysia, Faraid applies to all Muslims and is administered by the Syariah courts. It is mandatory and cannot be overridden — a Wasiat that contradicts Faraid rules is void to the extent of the contradiction.
Faraid distributes the estate to eligible heirs (waris) in fixed proportions. The shares vary depending on who survives:
A Muslim man in Penang dies leaving a wife, two sons, and one daughter. His net estate is RM 600,000. Under Faraid: Wife receives 1/8 = RM 75,000. The remaining RM 525,000 is distributed to the children: each son receives 2 shares, the daughter receives 1 share (total 5 shares). Each son receives RM 210,000. The daughter receives RM 105,000. Total: RM 600,000. Without a Wasiat, he cannot change these proportions or provide for anyone outside this list.
For these groups, a Wasiat (up to 1/3) or a Hibah arrangement is the only pathway to receive from your estate.
Hibah (هبة) is an irrevocable gift made during your lifetime. Once given, it belongs to the recipient — it is no longer part of your estate and is therefore not subject to Faraid or Wasiat rules. For many Malaysian Muslim families, Hibah is the single most powerful estate planning tool available.
For a Hibah to be legally valid under Islamic law and Malaysian courts:
One of the most common and effective uses of Hibah in Malaysia is assigning a life insurance policy via Hibah to a named recipient. When you do this:
In my experience serving clients across Penang, Butterworth, and Bukit Mertajam, Hibah on insurance policies is the fastest way to ensure your spouse and children have immediate cash flow in the event of your death — while the estate's Faraid process takes its course.
Faraid: Mandatory · Takes effect after death · Fixed shares for eligible heirs · Cannot be changed · Administered by Syariah court
Wasiat: Optional Islamic will · Takes effect after death · Maximum 1/3 of estate · Only for non-Faraid heirs or charity · Must have two Muslim male witnesses
Hibah: Irrevocable gift · Takes effect during lifetime (held in trust until death for conditional Hibah) · No limit on amount · Can be given to anyone · Bypasses Faraid and Wasiat entirely
These three work as a system. Faraid is the default. A Wasiat customises up to 1/3 of your estate for those outside Faraid. Hibah moves specific assets entirely outside the estate before death. A complete Islamic estate plan uses all three strategically.
This is the most dangerous assumption. Even the most harmonious family faces friction when money, grief, and legal uncertainty intersect. I have seen siblings in Butterworth who had been close for 30 years stop speaking over a disputed Faraid distribution. A written Wasiat removes the ambiguity that causes these conflicts.
For Muslim contributors, EPF nomination does not mean the nominee keeps the money. EPF pays to Amanah Raya Berhad, which distributes the savings according to Faraid shares — regardless of who was named as nominee. Unlike non-Muslims (where the nominee receives and distributes as per the will), the Muslim EPF nomination is purely administrative.
For life insurance with a simple nomination (without Hibah), Malaysian courts have increasingly ruled that the payout forms part of the estate for Muslims and is subject to Faraid. To ensure your insurance payout bypasses Faraid, assign the policy via Hibah — not just a standard nomination.
Under Islamic law, a Wasiat cannot be made in favour of a Faraid heir (including a wife) without the consent of other heirs. A wife already has her Faraid entitlement. To increase what your wife receives beyond her Faraid share, use Hibah on specific assets during your lifetime.
The Faraid share system must be understood in its complete jurisprudential context. Sons receive twice a daughter's share in inheritance, but sons also carry full financial responsibility (nafkah) for their mothers, wives, children, and sisters under Islamic law — financial obligations daughters do not bear. Estate planners can use Hibah to equalise distributions if the family agrees this is appropriate.
A wife's Faraid share may be as low as 1/8 of the estate — which in practice may not be enough to maintain the family home, pay school fees, and sustain the family during the months-long estate distribution process. Here is how to bridge that gap:
Assign your life insurance policy via Hibah to your wife and children. The sum assured is paid directly to them within weeks of your death — providing immediate liquidity while Faraid proceeds through the Syariah and civil courts. As an insurance advisor with 13 years of experience in Penang and across Malaysia, I have personally witnessed how this single arrangement protects families when they are most vulnerable.
If your family home is in your sole name, it becomes part of your estate and is subject to Faraid distribution. Options to protect your spouse's access:
Your Wasiat can specify who should be the guardian (wali) of your minor children if both parents pass away. Without this, the court decides — and the outcome may not reflect your values or wishes. You can also instruct how any trust assets should be managed for your children's benefit.
For Muslim business owners and property investors in Penang, Butterworth, Bukit Mertajam, and Seberang Jaya, estate planning requires an additional layer of thought:
If you own shares in a Sdn Bhd, those shares form part of your estate and are distributed according to Faraid. This can mean your spouse, children, and parents all become shareholders in your business — potentially with conflicting views on management. A clear succession plan within your Wasiat, combined with a shareholder agreement, prevents business paralysis after your death.
Rental income from properties in your estate continues to accrue during the estate settlement process. Without clear instructions in a Wasiat about how this income should be managed and distributed, disputes can arise. Your Wasiat can instruct your executor (Wasi) on how to manage rental properties during the estate settlement period.
Who is authorised to sign company cheques, approve supplier payments, and manage operations while your estate is being settled? Without a Wasiat naming a Wasi with specific business management instructions, a business can grind to a halt for months — costing far more than the Wasiat would ever have cost to prepare.
Combine a SnapWill Wasiat with: (1) Hibah on your life insurance policy to your family; (2) A shareholder agreement or buy-sell arrangement for your business; (3) Keyman insurance on yourself; (4) A review of all property titles and EPF nominations. This four-point approach protects your family and your business simultaneously. WhatsApp me to start this review today.
SnapWill is Malaysia's leading digital will and Wasiat platform — making it simple and affordable for every Malaysian Muslim to put their estate plan in order. As a SnapWill representative serving Penang, Butterworth, Bukit Mertajam, and Seberang Jaya, I guide Muslim clients through the SnapWill process as part of a complete Islamic estate planning review.
SnapWill gives you the document. I provide the strategy. Together, we ensure your Wasiat works in harmony with your Hibah arrangements, EPF nominations, insurance policies, and property ownership structures — so nothing falls through the cracks.
Protect your family according to Islamic principles. Simple, guided, and compliant with Malaysian Syariah requirements.
Start Your Wasiat — WhatsApp Keith Speak to Us!Ahmad, 35, is a civil servant in Penang with a wife, two young children, and a widowed mother. He dies in a road accident without a Wasiat. His RM 400,000 estate — a house, EPF savings, and a bank account — goes through Faraid. His wife receives 1/8 (RM 50,000). His two children and mother receive the remainder. The house must either be sold to divide the proceeds or transferred to joint ownership among all heirs — which requires all heirs to agree. Ahmad's wife cannot pay the mortgage alone on her share. A Hibah on his life insurance policy and a simple SnapWill Wasiat would have changed everything.
Hafiz, 52, owns two shophouses in Butterworth and a 60% stake in a Sdn Bhd. He dies without a Wasiat. His Faraid heirs — a wife, three children, and elderly parents — each have a legal claim to a portion of his estate. The business partners are unable to operate without Hafiz's share being resolved. The shophouses cannot be sold. Legal proceedings span 2.5 years. During this time, his wife struggles to maintain the family home on her Faraid entitlement alone. A Wasiat with clear business succession instructions, combined with Hibah on his insurance policy, would have protected both his family and his business partners.
Zainab, 48, has children from her first marriage and her current marriage. She also cares for an elderly non-Muslim neighbour who has no family. Under Faraid, only her eligible Muslim heirs receive. Her non-Muslim neighbours receive nothing. Her children from her first marriage receive their Faraid shares, but there is tension with the second marriage children over specific assets. A Wasiat directing 1/3 to her neighbour and providing clear instructions on which assets go to which children — combined with a family meeting facilitated before her death — would have preserved both legacy and family relationships.
Wasiat adalah dokumen yang ditulis oleh seorang Muslim yang menyatakan hasrat mereka mengenai pembahagian harta selepas kematian. Seorang Muslim hanya boleh mewasiatkan sehingga 1/3 daripada jumlah harta bersih mereka kepada penerima yang bukan waris Faraid. Baki 2/3 atau lebih dibahagikan mengikut hukum Faraid yang telah ditetapkan. Wasiat juga boleh merangkumi arahan jagaan anak-anak dan pengurusan perniagaan.
Faraid is the mandatory Islamic inheritance law prescribing fixed shares to eligible heirs. Wasiat is an Islamic will allowing you to bequeath up to 1/3 of your estate to non-heirs or charities. Hibah is an irrevocable gift made during your lifetime — it bypasses both Faraid and Wasiat entirely. Together, they form a complete Islamic estate plan.
Faraid applies to assets in the deceased's estate. Assets transferred via Hibah, harta sepencarian claimed by a spouse, and some insurance proceeds pass outside the estate. EPF for Muslims is distributed by Amanah Raya according to Faraid regardless of nomination. Keith Tew advises on which assets to place under which mechanism.
No. A Wasiat cannot be made in favour of a Faraid heir (including a spouse) without consent from other heirs after the testator's death. A spouse already receives their Faraid entitlement. To ensure your spouse receives more than the Faraid share, use Hibah on specific assets — particularly insurance policies — during your lifetime.
The estate is distributed entirely under Faraid. Family must apply to both Syariah and civil courts. The process takes 1–3 years, accounts are frozen, and the family bears significant legal costs. Anyone not covered by Faraid — including adopted children, non-Muslim relatives, or charities — receives nothing. A SnapWill Wasiat prevents this entirely for a fraction of the cost.
Yes. Hibah is recognised under Islamic law and Malaysian courts. It requires offer, acceptance, and delivery of possession. For insurance policies, a Hibah assignment ensures the sum assured goes directly to your chosen recipient outside of Faraid — making it the most effective tool for immediate family financial protection. Contact Keith Tew to set up a Hibah on your existing insurance policy.
Muslim EPF savings are paid to Amanah Raya, which distributes according to Faraid — regardless of who was nominated. Unlike non-Muslims (where the nominee receives and distributes via the will), Muslim EPF nomination is administrative only. Coordinate your EPF with a SnapWill Wasiat and Hibah plan through Keith Tew for a complete picture.
Harta sepencarian is matrimonial property acquired jointly during marriage. A surviving spouse can claim their portion of harta sepencarian at the Syariah court before Faraid distribution begins — effectively reducing the estate subject to Faraid. This is an important protection mechanism for spouses whose Faraid share alone may be insufficient.
Yes. SnapWill supports Islamic Wasiat creation — guided, affordable, and compliant with Malaysian Syariah requirements. Keith Tew, as a SnapWill representative in Penang, Butterworth, Bukit Mertajam, and Seberang Jaya, offers personalised Islamic estate planning reviews alongside SnapWill. WhatsApp Keith to get started.
Primary Faraid heirs include: husband or wife, father, mother, son, daughter, grandfather, grandmother, full and half-siblings (in certain circumstances). Shares vary based on who survives. A husband receives 1/2 (no children) or 1/4 (with children). A wife receives 1/4 (no children) or 1/8 (with children). Sons receive twice a daughter's share. Keith Tew maps your specific Faraid distribution as part of his Islamic estate planning consultation.
Under Islamic law, a Muslim can bequeath a maximum of 1/3 of their net estate (after debts) to non-Faraid heirs or charitable causes. The remaining 2/3 goes to Faraid heirs. Exceeding 1/3 to a non-heir is void for the excess unless all Faraid heirs consent after the testator's death. SnapWill automatically ensures your Wasiat complies with the 1/3 rule.
Most Islamic estate planners recommend both. Hibah transfers specific high-value assets outside Faraid during your lifetime. Wasiat directs up to 1/3 of remaining estate to non-heirs or charities. Together, they give you maximum control within Islamic legal boundaries. Keith Tew offers a personalised Islamic estate planning review integrating both.
Common myths: (1) EPF nomination protects your family — for Muslims, EPF goes to Amanah Raya for Faraid distribution; (2) Insurance payout bypasses Faraid without Hibah — not necessarily for Muslims without a Hibah assignment; (3) Faraid handles everything — it only covers estate assets and leaves non-heirs with nothing; (4) A Wasiat to my wife is valid — a Wasiat to a Faraid heir requires consent from other heirs.
A conventional will (for non-Muslims under the Wills Act 1959) allows full distribution freedom. A Wasiat is limited to 1/3 of the estate for non-heirs. Wasiat requires two Muslim male witnesses of good character. The remaining estate is distributed by Faraid — not by the Wasiat. SnapWill creates a Wasiat that complies with both Islamic and Malaysian civil law requirements.
Start by listing your assets, identifying your Faraid heirs, and deciding what you wish to leave to non-heirs or charities. Then use SnapWill to create your Wasiat, and contact Keith Tew for a personalised Islamic estate planning review that integrates your Wasiat with Hibah, EPF nominations, insurance policies, and property arrangements. Serving Penang, Butterworth, Bukit Mertajam, Seberang Jaya and all of Malaysia.
It Is Peace Of Mind For The Family You Leave Behind.
Plan today so your loved ones can focus on healing and remembrance — instead of handling uncertainty, court procedures, and financial pressure during their most difficult days.
I serve Muslim families in Penang, Butterworth, Bukit Mertajam, and Seberang Jaya with personalised Islamic estate planning — combining SnapWill Wasiat, Hibah on insurance policies, and a complete family protection review. Let us plan together.
Start Your Wasiat Planning Today Speak to Us!Keith Tew Chong Wei is a Premier Presidential Life Planner with 13+ years of experience, MDRT 7× member, COT 2×, and a SnapWill representative. He has facilitated over RM 4 million in insurance claims and advises Muslim and non-Muslim families across Penang, Butterworth, Bukit Mertajam, and Seberang Jaya on life insurance, estate planning, and holistic family protection. Learn more about Keith Tew →