Estate Planning and Wills Overview

Estate planning is the process of managing and distributing an individual's assets during their lifetime and after death.

A legal document that outlines how a person's assets will be distributed after their death
Typically includes:
- Appointment of an executor to manage the estate
- Distribution of assets to beneficiaries
- Guardianship of minor children
- Funeral and burial instructions
Can be revoked or updated during the person's lifetime
Must be signed and witnessed according to the laws of the jurisdiction

A legal arrangement where one person (the trustee) holds and manages assets for the benefit of another person (the beneficiary)
Types of trusts:
- Living trusts: created during the person's lifetime
- Testamentary trusts: created through a will
- Revocable trusts: can be changed or revoked during the person's lifetime
- Irrevocable trusts: cannot be changed or revoked
Benefits:
- Avoids probate
- Reduces estate taxes
- Provides for minors or incapacitated individuals

The legal process of validating a will and distributing assets after a person's death
Typically involves:
- Filing the will with the court
- Appointing an executor or personal representative
- Identifying and valuing assets
- Paying debts and taxes
- Distributing assets to beneficiaries
Can be a lengthy and costly process

A tax levied on the transfer of assets from a deceased person to their beneficiaries
Rates and exemptions vary by jurisdiction
Can be reduced or avoided through estate planning strategies, such as:
- Gifting during lifetime
- Establishing trusts
- Utilizing tax exemptions and deductions

A legal document that grants another person (the agent) the authority to make decisions on behalf of the individual (the principal)
Types:
- General power of attorney: grants broad authority over financial and legal matters
- Limited power of attorney: grants authority for specific tasks or decisions
- Durable power of attorney: remains in effect even if the principal becomes incapacitated
Important for estate planning to ensure continuity of care and management of assets

A system of inheritance based on Islamic law (Shariah)
Distributes assets according to a predetermined formula:
- One-eighth to the spouse
- One-sixth to the parents
- One-sixth to the grandparents
- Two-thirds to the children and grandchildren
- One-third to other relatives and charity
Applies to Muslims and can be used in conjunction with secular estate planning strategies

A document that outlines a person's wishes for the distribution of their assets after death, in accordance with Islamic law
Typically includes:
- Distribution of assets to beneficiaries
- Appointment of an executor
- Funeral and burial instructions
- Charitable bequests
Must be written and signed according to Islamic guidelines

A type of trust that dedicates assets for charitable purposes, in accordance with Islamic law
Can be established during a person's lifetime or through a will
Benefits:
- Supports charitable causes
- Provides a perpetual source of income
- Can reduce estate taxes

A voluntary transfer of assets from one person to another during their lifetime, in accordance with Islamic law
Can be used for estate planning purposes, such as:
- Reducing estate taxes
- Providing for minors or incapacitated individuals
- Supporting charitable causes

The process of managing and distributing an individual's assets during their lifetime and after death

A legal document outlining how a person's assets will be distributed after their death
Typically includes appointment of an executor, distribution of assets to beneficiaries, guardianship of minor children, and funeral and burial instructions
Can be revoked or updated during the person's lifetime
Must be signed and witnessed according to the laws of the jurisdiction

A legal arrangement where one person (the trustee) holds and manages assets for the benefit of another person (the beneficiary)
Types of trusts include living trusts, testamentary trusts, revocable trusts, and irrevocable trusts
Benefits of trusts include avoiding probate, reducing estate taxes, and providing for minors or incapacitated individuals

The legal process of validating a will and distributing assets after a person's death
Typically involves filing the will with the court, appointing an executor or personal representative, identifying and valuing assets, paying debts and taxes, and distributing assets to beneficiaries
Can be a lengthy and costly process

A tax levied on the transfer of assets from a deceased person to their beneficiaries
Rates and exemptions vary by jurisdiction
Can be reduced or avoided through estate planning strategies such as gifting during lifetime, establishing trusts, and utilizing tax exemptions and deductions

A legal document granting another person the authority to make decisions on behalf of the individual
Types of powers of attorney include general power of attorney, limited power of attorney, and durable power of attorney
Important for estate planning to ensure continuity of care and management of assets

Faraid (Islamic Inheritance) is a system of inheritance based on Islamic law (Shariah)
Distributes assets according to a predetermined formula, applying to Muslims and can be used in conjunction with secular estate planning strategies
Wasiyyah (Islamic Will) is a document outlining a person's wishes for the distribution of their assets after death, in accordance with Islamic law
Waqf (Islamic Endowment) is a type of trust that dedicates assets for charitable purposes, in accordance with Islamic law
Hibah (Islamic Gift) is a voluntary transfer of assets from one person to another during their lifetime, in accordance with Islamic law