Advisors’ Forum
Sharing Under Sharia
05/01/2006

As second-generation Egyptian Americans, my two sisters and I grew up with very little connection to our father’s homeland. Our mother is U.S.-born and none of us are practicing Muslims, including our father. So we were shocked recently when he announced that he would be following sharia law with his estate, and thus his will bequeaths my sisters half the assets that I, as a male, get. How would you suggest I go about urging him to take a more egalitarian approach? Is there a way to respect sharia law without condemning my sisters to a lesser stake–and hurting our relationships in the process?

Sharia law provides that a son will inherit twice the share of a daughter because, traditionally, men were responsible for women. Two estate planning techniques may offer solutions that address your concerns.

First, your father might name you as the trustee of a trust that holds the additional share of assets he wishes to bequeath to you. As the trustee, you would hold legal title to the assets, and you would decide whether to make payments from the trust to yourself and/or your sisters.

The estate planning concept known as "disclaimer" may also be useful. If your father leaves you an additional share of his assets at death, a valid disclaimer permits you to renounce the additional share, or the portion thereof that you believe should pass to your sisters, after the death of your father. The renounced share of the property then passes as though you had predeceased your father.

Karen M. Moore, Bricker & Eckler, Columbus, Ohio

I think the first thing to appreciate is that it is your father’s or parents’ money, which implies a certain level of respect for their wishes.

However, you and your sisters are the ones impacted by your father’s decision. If you feel that you can bring up how uncomfortable an unequal distribution would make you feel, you should discuss it with your father. It may help to explain that your values are partly a product of the values he imparted to you, and that you are grateful for having a strong sense of fairness and love for your sisters.

Next, I would suggest that when you do inherit, you may do as you wish based on your own values. You could simply take one-third of your inheritance and give it to your two sisters. At your father’s death, you should consult with an estate attorney, as it may be possible for you to disclaim the unequal portion and have it go directly to your sisters without gift tax return implications.

Bill Ramsay, Financial Symmetry, Raleigh, N.C.

I have seen the result of sharia law estate planning firsthand with a client’s parent. They are a family of two sons and five daughters. The will was written leaving the assets to the sons (millions in art, property, securities and real estate) and mere thousands to each of the daughters. Son number one tried to convince his brother to share the estate more equally, but he refused. So son number one gave part of his inheritance to his sisters–but not in equal portions. He decided who needed and deserved each amount. The sisters and brothers no longer speak to each other. The brothers’ relationship is strained, each thinking the other wrong. The sisters who received less don’t speak to the other sisters or the "generous" brother.

Tell my sad tale to your father. Tell him that your sisters will think that he loves them less than he loves you. Of course, you can gift a portion of your inheritance to your sisters. But if you don’t give them substantially equal shares to yours, you will create a worse problem.

Clare Stenstrom, Bourne Stenstrom Capital Management, New York

It is possible for your dad to remain faithful to sharia law without causing a rift between you and your sisters. I am assuming that if your father predeceases you, he will leave behind your mother, you and your two sisters. Your mother will receive one-eighth of his estate, you will receive 7/16 and each of your sisters will receive 7/32. Your share is equal to the two shares of your sisters.

Under Islamic law, two-thirds of the estate must be distributed according to this forced share requirement, but one-third can be distributed at the decedent’s discretion. Several schools of law hold that your father can distribute the one-third to his legal heirs as long they consent to the deviation from the strict share percentages.

You can suggest to him that you and your mother are willing to take less of that one-third in order for you to be equal with your sisters. As such, your father would not violate accepted Islamic practice.

Abed Awad, Law Offices of Abed Awad, Clifton, N.J.

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