Hibah is the transfer of ownership of a person's property to another individual during their lifetime, voluntarily and without expecting any consideration or return.
When a Muslim passes away in Malaysia, all their standard bank accounts, properties, and un-nominated assets are legally frozen. The family must apply for a Letter of Administration or Probate to unlock them, a process that can take months or even years.
Faraid dictates strict, unchangeable fractions of inheritance based on gender and relation. While perfectly just, it does not account for individual financial dependencies. Hibah allows you to specifically look after like adopted children, stepchildren, an only daugther or non-muslim family members.
Since the gift is absolute and documented during your lifetime, it leaves zero room for guesswork or debate after you are gone.
A very common issue in Malaysia occurs when a married couple jointly buys a home. If the husband passes away, his half of the property does not automatically go entirely to the wife; it is split among his wife, his parents (the parents-in-law), and his children according to Faraid.
Validation of Hibah documents by the Syariah Court
Manages the transfer of ownership of the Hibah asset(s) to the Hibah Recipient through the estate administration process upon the Donor's passing.
