How does a Trust impact on Islamic Inheritance?

Answer

The entire trust deed is in conflict with the Shariah. A trust entity has absolutely no Shar'i validity. However, it may be adopted to circumvent certain kuffaar laws. But the essential requisites are:

(a) The 'founder' remains the sole owner of the assets in the trust fund.

(b) On the death of the 'founder', all the assets must be compulsorily and expeditiously distributed according to the Shariah's Law of Meeraath.

(c) The trustees may exercise the powers conferred to them by the 'founder' only during his/her lifetime. All their powers will cease on the death of the 'founder' whose entire estate will be inherited by the heirs. The rights of the heirs extinguish the powers of the trustees.

(d) After the death of the Murith (who is the founder of the trust), the heirs may decide if they want the trust to continue. The trustees will have no right to insist that the trust continues.

These issues must be clarified to the founder and her heirs. The trust simply has no validity in terms of the Shariah.