NST TV BTTV | A faraid guide for EPF contributors

January 16, 2024

Discussing inheritance is challenging but essential to raise awareness about the rights of family members, particularly in the context of Muslims, where the distribution of assets, such as EPF monies, follows Shariah law. Muslims can plan their inheritance through hibah or wakaf during their lifetime, but after demise, it adheres to faraid law, considering burial fees, debts, and bequeaths. The will or hibah should not exceed one-third of the total amount. Faraid has three categories: main, substitute, and collateral beneficiaries, including parents, spouses, sons, and daughters. EPF nominees for Muslims act as administrators, not sole beneficiaries, and must distribute funds according to Islamic law. EPF contributors can appoint AmanahRaya as a nominee to ensure Islamic law compliance since January 2018. Amanah Raya Bhd’s managing director, Ahmad Feizal Sulaiman Khan, emphasises that faraid aims to protect rightful beneficiaries. All rights reserved to @nstonlinetv.

Source: New Straits Times