Introduction: More Than Just Money
Losing a loved one is one of the hardest things anyone will ever go through. Families find themselves incredibly emotional after losing someone and have to go through a very difficult time managing their loved one’s estate. Many times a loved one dies within your family and there is a scramble among family members to divide up the deceased’s estate (property or money). Often there are miscommunications and misunderstandings about who gets what, and sometimes the aftermath can lead to years of family conflict.
Islam provides a very detailed outline, step-by-step, for how to distribute the assets of a deceased person upon their passing. It's not just a question of "Who gets what?"; rather, it includes fulfilling the rights of the deceased; then fulfilling the rights of the deceased’s creditors; then fulfilling the rights of the deceased’s heirs. Following this order as described is important for purposes of religious and moral integrity.
Hierarchy of Claims
In Shari'a there is an order (hierarchy) to use the deceased's money. You can not go onto step four until you have fully completed step one through step three.
Stage 1.The funeral expenses and burial of the deceased person are the priority claim against his estate. This would include the cost of the kafan (or shroud), the cost of the grave, and the transportation of the body.
It is important to remember that Islam encourages simplicity in expenses and therefore should be within reasonable limits according to that person’s position, without any extravagance or waste. If there was no money left by the deceased, then those who were responsible for him financially when he was alive will be responsible for paying these expenses (i.e., his son, father, etc.).
Stage 2: Settlement of Debts (Qarz)
This stage is perhaps the most important part of the process. There is a famous example of the Prophet Muhammad (PBUH) refusing to lead the funeral prayer of someone who died with a debt he could not repay. Debts have two categories:
● Debts to Allah (Huquq Allah) - These are debts owed to Allah, such as unpaid Zakat, kaffarah (expiation) or the cost of a Hajj if it was obligatory but not undertaken.
● Debts to Others (Huquq al-Ibad) - These are debts owing to other people, such as loans from banks and friends or unpaid wages to employees.
There is also an additional category of debt, which is commonly overlooked, and that relates to unpaid Mahr. If a husband dies and the Mahr that he promised his wife is unpaid, that amount shall be treated as a debt that must be satisfied prior to distributing the estate.
Step 3: How the Will Is Carried Out After the Funeral and Any Debts Have Been Paid
Stage 3.After the funeral has been paid for and any debt has been settled, the next step is to look at what money is left to be distributed in accordance with the deceased’s wishes, if he/she has left a will (as discussed in the previous blog). The will is carried out here, provided that the will does not exceed 1/3 of what is being distributed, and it has not been directed to someone who is already a legal heir.
Stage 4.Having performed the first three steps will allow for distribution of any available wealth (the "estate") to the heirs (mirs), as required by Islamic law. Once an estate has been determined to exist, it will then be distributed according to the rules established by the Qur'an to the deceased's parents, spouse, children, and so on.