Monday, February 26, 2024
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Registering property under children’s names

Fatwaa ID: 1715

Another question.
We brought property and registered one on each childs name, one girl and 2 sons,with 2 intentions
1) to save income tax.
2) the children get it after our death without having any disputes among them about distribution. But during our life we will be using them.
We have informed them as such. The question is do they have to distribute as per shariah after our lives or they can use it as registered officially on each of them irrespective of the rates.

In the Name of Allaah, the Most Gracious, the Most Merciful.
As-salaamu ‘alaykum wa-rahmatullaahi wa-barakaatuh.

We take note of the details of your query. Merely registering the property under the children’s name and informing them will not transfer ownership. Upon your demise, the properties will have to be distributed in accordance to the Shari’ah stipulated shares. If you wish for a property to belong to a specific child, then you must gift it to him/her during your lifetime and he/she must accept and assume constructive possession. The gifting must be unconditional, i.e., you must relinquish all rights and claims to the property upon gifting.

And Allaah Ta’aala knows best.
Mufti Muajul I. Chowdhury
Darul Iftaa New York

02/21/1445 AH – 09/07/2023 CE | AML1-8279

وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين


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