Index IntroductionAn Overview of Estate PlanningDifferences between Faraid, Bequest and Gift Inter Vivos (Hibah)Concept of Hibah in Islamic Estate PlanningProblem StatementIntroductionEstate planning is one of the components of personal financial planning. Estate planning is an important plan for the administration and disposition of your estate during your life and at death. Therefore, it involves both managing your property while you are alive and managing what happens to that property after you die. However, estate planning in Malaysia is not widely practiced. In fact, some of them have no awareness about estate planning as they think that it is not necessary because Islam has its own inheritance system called faid system. Furthermore, Malay Muslims' low awareness of estate planning is also reflected in their awareness of hibah as a method of managing their assets. Although estate planning is very important, little research has been conducted in this area in Malaysia, especially in the empirical study on hibah, while it has also been highlighted in the Islamic inheritance system. Therefore, this study attempts to revisit the practice of hibah in Malaysia using primary data on the knowledge and practice of hibah (Inter Vivos Gift) within the contextual form of Islamic estate planning through control variables. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original EssayAn Overview of Estate PlanningEstate planning or otherwise known asset redistribution is about how you should distribute your wealth after your death. For Muslims whatever we do is not only for the benefit in this world but also in the hereafter. This is because we will be asked how we procure our wealth, how and to whom we spend it and equally important is how responsible we are in planning the distribution of our wealth for the benefit of surviving family members, not family members but also society. At the same time, the acquired wealth must be spent in the right way, as stated by Allah in Surah Al-Baqarah, verses 261 and 274 which mean: "The parable of those who spend their substance in the way of Allah is that of a grain of wheat: seven ears grow and each ear has one hundred grains. Allah gives manifold fruits to whomever He wishes. Allah takes care of everything and knows everything (2:261)”“Those who (in charity) spend their wealth night and day, in secret and in public, they have their reward with their Lord: there will be no fear upon them, nor will they grieve (2:274)” Besides this, in the Hadith it states that Malik reported to me from Nafi' from 'Abdullah ibn 'Umar that the Messenger of Allah, may Allah bless him and grant him peace, said: “It is the duty of a Muslim who has something to bequeath must not let two nights pass without writing a testament in this regard. Based on the understanding of these words of Allah, it can be concluded that Muslims need to seek livelihood in this world to obtain the blessing of Allah. in the world as well as in the afterlife. Differences between Faraid, Bequest and Inter Vivos Gift (Hibah) Malaysia is growing and more and more players from the banking sector and private companies are entering this sector compared to other Muslim countries. Due to this situation, Amanah Raya Berhad (ARB) is well known and has been established as a licensed public agency offering a full range of Islamic estate planning since 1995. The Inheritance SystemIslamic includes a series of micro institutions: faid, bequest and inter vivos gift (hibah). Faraid is defined as an Islamic law that provides for the distribution of wealth to one's family after death that follows Faraid rules. According to Faraid rules, beneficiaries are fixed, the proportion of distribution to beneficiaries is fixed, non-Muslim next of kin of the deceased Muslim are not entitled to Faraid distribution, adopted and illegitimate relationships are not recognized for Faraid distribution. On the other hand, Wasiyyah is another method in distributing the wealth of the deceased. Wasiyyah is a legal document that outlines how one's assets must be distributed in the event of extraterrestrial events and also the possible appointment of a trusted guardian for the minor (18 years old). Writing a wassiyah or will means stipulating the direction and distribution of the estate to its beneficiaries. Muslims don't really bother to write a will, perhaps due to the implementation of the Faraid law. But the distribution of property according to Faraid is subject to several conditions, such as blood relationship. So wasiyyah is the best solution to distribute property to loved ones, no matter if they have no blood relationship with the donor. Besides that, in Islamic estate planning, hibah is a gift that is given to an individual during lifetime. of the donor or in the distribution of assets of the deceased, for example an adopted child or loved one of the deceased. In Islam, the practice of hibah is highly recommended especially among family members, then neighbors and so on. It was narrated that when Saidatina Aisyah, the wife of the Prophet, wanted to give a gift to one of her two neighbors and asked for his advice. The Prophet replied: "Give to the one whose door is closest to you." The Concept of Hibah in Islamic Estate Planning Literally, the term hibah comes from the Arabic root of “habubah” which means to pass or blow. Technically, hibah is defined as giving one's wealth to others without expectation of any substitution or exchange with a transfer effect on the property. Another definition is to transfer ownership of the asset to others without compensation. Hibah is another alternative in Islamic estate planning structure; complementing faired and wasiyyah (will). As we know, Islamic inheritance law or faid provides for the distribution of the deceased's assets to those who have blood relations with him. Therefore, the hibah will help solve the problem of distributing assets to some heirs who are not entitled to receive the assets according to the faid. For example, the hibah can solve problems in transferring the share of the estate to non-Muslim, adopted or illegitimate heirs or even to particular blocked heirs (heirs who are not entitled to receive the inheritance, being blocked by other heirs) before /she is dead. Furthermore, in the case of the father who wants to give his son more than he is supposed to get in estate planning, the only choice he has is to perform hibah. Since hibah is a form of distribution of assets in addition to wasiyyah, it is important for Muslims to know the difference between the two because sometimes we have a specific intention when we channel funds to others but do not respect characteristics such as timing and type of activity. The main difference between the two is that wasiyyah is a gift performed after the death of the giver or donor. While hibah is a gift that can be given during the donor's lifetime or even after death. The offering of Hibah must be made voluntarily without any coercion or undue influence. However, if elements of coercion and undue influence are present, the hibah donation contract is void. The contract of hibah comprises three main elements, viz.