Question: 5 people, including Zayd, bought an investment property together. Zayd’s primary intention in buying the property is to generate income through receiving rent payments. He has not bought it with the intention to sell. Like Zayd, Zayd’s partners have bought the house with the intention to make money through rent that they will receive. However, […]
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How can potential Zakat recipients be determined?
Question: When determining who is eligible for Zakat ,what information and verification is required? Are any of the following acceptable methods of selecting Zakat recipients? Only ask the beneficiary, if they are eligible for Zakat? Ask the beneficiary for amount of savings, debts, income and expenditure to then calculate a rough eligility based on Nisab? Does […]
Read more...Is it permissible to join a local government pension scheme?
Question: Please could you advise if it permissible to join a local government pension scheme? The information I have from the scheme is that contributions are made from monies paid in by members and something like 4% will come from investments and it is very difficult to breakdown the investments to determine which are permissible […]
Read more...Are Trusts recognised in Islam?
Question: Are trusts (where the legal and beneficial ownership of an asset are split) recognised in Islam? e.g. a house is in my name, but I’m holding it on trust for my brother? Answer: لجواب حامدا ومصليا ومسلما ومنه الصدق والصواب The split of legal and beneficial ownership does find some validity in Islamic jurisprudence. […]
Read more...Is it permissible to pay monthly bank fees?
Question: Is it permissible to open a current account with a bank such as Triodos? Their current account has no interest, but the bank does charge a small monthly fee to cover the cost of running the account. Answer: الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب It is permissible for a bank to charge a […]
Read more...Can Wealth be allocated outside of a Will?
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? Answer: 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 […]
Read more...Is it permissible to take out critical health insurance?
Question: Is it permissible to take out critical health insurance? Answer: الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب Conventional insurance is a commutative contract that involves gross uncertainty, contingent return, meysir and riba. Thus, conventional insurance is not permissible and is tolerated only where it is a legal requirement or a real necessity. Critical illness insurance […]
Read more...Is it permissible to use interest free finance to purchase a car?
Q. Please can you explain if it’s permissible to use interest free finance to purchase a car. Some showrooms let you hire-purchase cars where it’s interest free, with no deposit. There is a scheme for certain company employees that allow the following deal: 8% off rrp and 0% interest. This seems to be a popular […]
Read more...Is it permissible to use Zakat to fund qard hasan, microfinance initiatives or invest into waqf projects?
Q: Is it permissible to use Zakat to fund qard hasan, microfinance initiatives or invest into waqf projects? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: It is not permissible to use zakat to fund qard hasan, microfinance initiatives or invest into waqf projects as none of these avenues satisfy the requirement of proprietary transfer […]
Read more...Is paying back a student loan a requirement before going on Hajj?
Q: My husband and I have applied to go on hajj this year inshAllah. I was reminded by my husband however that I have not paid back my student loan of £9000, which i took out before I got married, to help pay fees and expenses of 3 years of a degree in Medicine. I say […]
Read more...Why does one need to pay Zakat on a pension plan if one does not get access till later?
Q: I have recently setup a SI pension plan account where I can manage the investment but the principal and the gains are not available to me till the age of 55. Is the investment value still zakatable in the years leading up to age 55? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: […]
Read more...What does one do If they can’t find a trustworthy executor for their wills?
Q: What does one do If they can’t find a trustworthy executor for their wills? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: One should seek to employ the services of a competent solicitor who will undoubtedly be regulated by his/her professional body.
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