Question: Can half of a pension fund be allocated to a family member, such that it doesn’t form part of estate for inheritance purposes?
الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب
Any allocation of funds further to your death is effectively a bequest. A bequest cannot be made in favour of someone [like a wife] who is already an heir. If you want to provide security to your wife you may make a gift to her in life provided the intention is not to reduce the inheritance of other heirs.
And Allah knows best.
Mufti Mohammed Zubair Butt
Al-Qalam Shariah Scholars Panel