Financial services Standard Bank has announced that it has introduced a Shari’ah-compliant discretionary trust for Muslims who wants to structure their assets and conduct their estate planning according to Shari’ah principles or guidelines. File photo.
In a statement, Standard Bank said to be considered Shari’ah compliant there was a defined framework specific to Shari’ah estate planning which was in some cases in stark contrast to a conventional estate plan.
Head of Standard Bank Shariah Banking Ameen Hassen said: “The trust structure may be perceived as an appealing solution to meet the financial and estate planning goals of our Muslim clients on the continent, which was not available until now”.
“The Shari’ah trust offering provides a way for individuals to distribute their assets following the principles of Islamic law,” he said.
“The Muslim faith has specific requirements when it comes to investing and estate planning. Muslims are now able to grow, preserve and pass on their family wealth while still complying with Shari’ah law,” he added.
Head of Trusts for Standard Trust Limited, Mohamed Jeewa, said the Muslim faith had specific requirements when investing and estate planning.
“The trust offers a way for Muslim families to preserve wealth for future generations and charitable causes in a Shari'ah-compliant manner,” said Jeewa.
According to the bank, the main principles of the trust structure provide for the holding of assets for future beneficiaries and transfer of ownership, making it an effective tool in estate and succession planning.
“Provision can be made for the inclusion of family-owned businesses, the family obligations for Zakat payments, and the preservation of family values. Zakat is a key part of the Islamic social welfare system that requires Muslims to give 2.5% of their qualifying assets each year to help those in need,” the bank said.
Jeewa said charitable giving is part of upholding the principles of Islam.
“Beyond the basic tax deductions for charitable giving, setting up the Inter Vivos trust could provide financial advantages in addition to the peace of mind in knowing that the money kept in a structure in which it can be preserved and distributed to the right beneficiaries,” he said.
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