Islamic estate planning in the industrial revolution 4.0 era: Issues and challenges

Abstract

The development of the Industrial Revolution 4.0 has contributed to creating various technologies for economic progress. This includes the field of Islamic estate planning, such as will and trust. However, the technology developed to meet the Muslim community's property planning needs is still in its infancy until now. Therefore, the purpose of this study is to investigate the issues and challenges faced by trust institutions in Malaysia in facing Islamic estate planning in the Industrial Revolution 4.0 era. This study uses a content analysis approach by reviewing and analyzing previous Islamic estate planning studies. To achieve the goals of the study, this study refers to the classical and secondary sources in the field of expert. Furthermore, five official websites from 5 trust institutions; Amanah Raya Berhad (ARB), as-Salihin Trustee Berhad, Wasiyyah Shoppe Berhad, MyAngkasa Berhad and the Islamic Religious Council (Selangor) (MAIN) were analyzed to obtain information on the current will and trust practice. Several representatives of officials from each selected institution were interviewed to obtain more accurate information. The study found that the implementation of Islamic estate planning through digital technology in line with the era of Industrial Revolution 4.0 is still in the early stage, starting only from 2018. This is because its manual implementation through human resources is still required while manual trust documentation is still maintained. Therefore, it is hoped that the trust institutions may provide new mechanisms and fresher innovations in encouraging the community to implement will and trust in line with Industrial Revolution 4.0

Analysis of trust instrument in Islamic estate planning: a study case at Amanah Raya Berhad, Malaysia

“…Therefore, they do not plan systematically either through a will, Hibah , waqf or trust instrument. A study conducted by Abdullah et al (2021) also showed that the knowledge and implementation of the trust instruments among the community is still at a low level.…”

The Impact of Attitude, Subjective Norms and Perceived Behavioral Control on Intention to Make Hibah: A Study among Muslims in Klang Valley

“…The study chose to focus on Muslims in Klang Valley since the prevalence of dispute and pending distribution of Muslims estate is reported to be at approximately 86% (Ahmad et al, 2019). This percentage is considered as high among its population second only to Kedah (Abdullah et al, 2021). It is hoped that the findings from this study can provide some understanding of the factors influencing intention to give hibah among the Muslim community and such findings can be leveraged by the authorities and interested agencies in promoting hibah giving and enhancing wealth management practices in Malaysia (Abdullah et al, 2021).…”

“…This percentage is considered as high among its population second only to Kedah (Abdullah et al, 2021). It is hoped that the findings from this study can provide some understanding of the factors influencing intention to give hibah among the Muslim community and such findings can be leveraged by the authorities and interested agencies in promoting hibah giving and enhancing wealth management practices in Malaysia (Abdullah et al, 2021). Indirectly, with better wealth management, property disputes cases and incidents of widows and children being left in dire financial situation pending the distribution of estate can be lessened and their welfare are better taken care of.…”

“…These are just among the problems that can arise from poor wealth management among the Muslims. The sad reality is all these predicaments can be avoided with proper awareness, knowledge, and adoption of Islamic wealth management tools (Abdullah et al, 2021).…”

Analysis of The Solution to The Division of Muslims' Small Estates by Consensus in Johor Bahru

“…Every year scholars will raise the issue of unclaimed property and now it has been found that almost RM90 billion worth of real estate has not been claimed by the rightful and legitimate heirs (Roslan & Ahmad, 2022). In addition to other issues such as high administrative costs (Ab Rahman et al, 2019) and difficulties during the administration process of the inheritance (Wan Hassin et al, 2016) were also be the main issue that is often heated from the point of view in understanding of the heirs who lack in knowing the division of their inheritance (Abdullah et al, 2021) and the lack of responsibility among the heirs in committing to manage and resolve matters of their inheritance (Wajis et al, 2018).…”