Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh.  (May Allah's Peace, Mercy and Blessings be upon all of you)

One of our brothers/sisters has asked this question:

29.     Is it halal to receive Company shares (without having to pay for them,the company just gives them to you) and then receive the profits from them?Some argue that shares is not haram as it is just seeing how the company is doing in the market it operates in but some say it is haram. Please advise

30.     How should I divide my assets for inheritance (in my Will) if I were to die with the following family: Mother, Father, 2 sisters (no wife or kids).Is it 1/6 to mother and rest to father?

31.     If I was to then marry, then how would the inheritance differ from the above (with the inclusion of a wife, no children)

32.     If I wanted to put some of my assets/funds when I die to charity, how much portion of my total inheritance can I put aside for this (after all the funds have been paid for burial, debts, family (in point 30))

JazakAllah Khairun for the time you spend looking into this and the service you provide, may you be rewarded.

Wasalaam

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Answer:

Inheritance

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is no one (no idol, no person, no grave, no prophet, no imam, no dai, nobody!) worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.

Your Question: Is it halal to receive Company shares (without having to pay for them, the company just gives them to you) and then receive the profits from them? Some argue that shares is not haram as it is just seeing how the company is doing in the market it operates in but some say it is haram. Please advise

According to the view of most scholars in Islam, there is nothing wrong in the investment of shares and the stock market in its essence.

But the scholars have given a few guidelines to follow, to make sure that that the earnings of the company whose stocks are bought are legal according to Shariah.

The three main factors that make a stock haraam according to the scholars is as follows:

1.      The company should not deal in a product which is declared haraam in its essence in Islam. Eg. alchohol, prostitution, usury, pork, etc.

2.      The company should not deal in a product which is used to harm a muslim country. Eg. Arms manufacturing in a pagan country, etc.

3.      Only the pure buying, holding, and selling of stocks is termed halaal by the scholars. All types of other derivative transactions like shorting the stock, buying calls, selling calls, buying puts, selling puts, straddles, or any other variations are not lawful.

There is absolutely no harm in Shariah if one receives some shares from a (lawful) company as a bonus, or as a gift, or as an incentive to their employees, etc.; or obtaining profit from the dividends or the sale of these shares.

Your Question: How should I divide my assets for inheritance (in my Will) if I were to die with the following family: Mother, Father, 2 sisters (no wife or kids). Is it 1/6 to mother and rest to father?

Allah Says in the Holy Quran Chapter 4 Surah Nisaa verse 11:

11 Allah (thus) directs you as regards your children's (inheritance): to the male a portion equal to that of two females: if only daughters two or more their share is two-thirds of the inheritance; if only one her share is a half. For parents a sixth share of the inheritance to each if the deceased left children; if no children and the parents are the (only) heirs the mother has a third; if the deceased left brothers (or sisters) the mother has a sixth. (The distribution in all cases is) after the payment of legacies and debts. Ye know not whether your parents or your children are nearest to you in benefit. These are settled portions ordained by Allah and Allah is All-Knowing All-Wise.

If the deceased is survived only by his mother, father and two sisters, then the prescribed distribution of his inheritance according to Shariah Law will be as follows:

1/6^th to the mother

Balance all to the father.

The sisters will not receive anything, but because of their existence, the mother share is reduced from 1/3^rd to 1/6^th and the fathers’ share is increased so that he may spend on them as it is his responsibility.

Your Question: If I was to then marry, then how would the inheritance differ from the above (with the inclusion of a wife, no children)

Allah Says in the Holy Quran Chapter 4 Surah Nisaa verse 11:

12 In what your wives leave your share is a half if they leave no child; but if they leave a child ye get a fourth; after payment of legacies and debts. In what ye leave their share is a fourth if ye leave no child; but if ye leave a child they get an eighth; after payment of legacies and debts. If the man or woman whose inheritance is in question has left neither ascendants nor descendants but has left a brother or a sister each one of the two gets a sixth; but if more than two they share in a third; after payment of legacies and debts; so that no loss is caused (to anyone). Thus is it ordained by Allah and Allah is All-Knowing Most Forbearing.

If case the wife is amongst the survivors of the deceased, the distribution will be as follows:

1/4^th to the wife

1/6^th to the mother

Balance all to the father.

The sisters will not receive anything.

Your Question: If I wanted to put some of my assets/funds when I die to charity, how much portion of my total inheritance can I put aside for this (after all the funds have been paid for burial, debts, family (in point 30))

Malik related from Ibn Shihab from Amir ibn Sad ibn Abi Waqqas that his father said, "The Messenger of Allah (saws) came to me to treat me for a pain which became hard to bear in the year of the farewell Hajj. I said, 'O Messenger of Allah (saws), you can see how far the pain has reached me. I have property and only my daughter inherits from me. Shall I give two thirds of my property as sadaqa?' The Messenger of Allah (saws) said, 'No.' I said, 'Half?' He (saws) said, 'No.' Then the Messenger of Allah (saws) said, 'A third, and a third is a lot. Leaving your heirs rich is better than leaving them poor to beg from people.’

In light of the above authentic and established tradition of the Messenger of Allah (saws), Shariah Law dictates that the absolute maximum one may bequeath in their will is one-third of their wealth. Under no circumstances can one bequeath a portion of their wealth to any of their legal heirs whose portions are prescribed by Allah Subhanah; but one may bequeath an absolute maximum of one-third to anyone else other than their legal heirs, if they wish to do so.

Whatever written of Truth and benefit is only due to Allah’s Assistance and Guidance, and whatever of error is of me alone. Allah Alone Knows Best and He is the Only Source of Strength.

Your brother and well wisher in Islam,

Burhan