Distribution of insurance, pension, 401 k and money in providence fund : distribution of money in central providence fund of Singapore

Fatawa Question

Salam I was one of the participants at the Waqf conference in Singapore. Perhaps you may remember me-I approached you during the tea break and told you that I will write to you regarding inheritance issues. First and foremost I must tell you that I am impressed and was enlightened with your universal outlook of Islam where such view is much lacking in our society. My question is : In Singapore all employees will have a mandatory central provident fund account where both the employer and employee are required to contribute a certain % (now 33 %) of the wages. These monies can be withdrawn when the member reaches 55 years of age. In summary it is like a pension fund. Members are encouraged to make a nomination so that in the event of death before reaching 55 years the money will go to the nominee. A Fatwa was given that although the member may make a nomination, the monies nominated are considered to be held in trust and must be grouped with other assets of the deceased for distribution according to Faraid. My question is that a member who is a sole breadwinner may nominate the money to his wife who is not working and children as he knows that they would be in dire financial hardship without him. Upon his death, the CPF board would release the money to the wife and adult children. The amount due to the children who are minors will be remitted to the public trustee to be held in trust until the child reaches majority age. Arising from the Fatwa, the family of the deceased, e.g., his parents and siblings would demand that the moneys received by the deceased's wife and children be redistributed according to Faraid. At times, they even insist that the home which the wife and children are staying be sold and proceeds distributed according to Faraid. This has created a lot of family quarrel and tension as usually the beneficiaries would demand their share according to Faraid but are not ready to undertake the responsiblity of caring the deceased's immediate family. Can you enlighten me with your view on the said issue ?. My personal view is that since it was the deceased intention that he wants his CPF moneys and asset to go to his immediate family by nominating them as beneficiary-so why should it be distributed to the other beneficiaries. Unless if he doesn’t nominate I totally agree that Faraid law applies. Can you also confirm whether the 1 / 3 ruling on willing away of one's asset to a non beneficiary is mentioned in the Quran or it is in the Hadith. If in the Quran which verse is That ? Can a Muslim do a will and will away his assets according to his wishes. I am looking forward to your reply. Was Salam

Fatwa

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Publication Date

2007-03-10

Main Subjects

Economics & Business Administration
Islamic Studies

No. of Pages

3

Data Type

Fatawa

Language

English

Record ID

BIM-784938

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