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Integrating Family Waqf into an Inheritable Going Concern Business: An Instrument for the Sustainable Welfare of Exempted Heirs

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Revitalization of Waqf for Socio-Economic Development, Volume II

Abstract

Affording basic needs of the family members (orphans, widows, poor and needy) out of one’s wealth is a highly recommended practice in Islam. This paper presents how family waqf could be infused into an inheritable going concern business for sustainable welfare of the current and future generations of the family members who are exempted from the inheritance. The business as an estate left by a deceased becomes a family business since each heir is admitted into the business as a partner. Thus, the business becomes a family business. The paper shows that waqf could be infused into the business by the owner of the business before death or by way of will (bequest). In addition, the heirs could declare a portion of their wealth as waqf during the distribution on behalf of the deceased. Alternatively, the heirs could declare a certain portion of their net worth from the inherited business as waqf for the exempted heirs. The integration is expected to be sustained as long as the business remained a going concern. Consequently, the exempted family members (both current and future) welfare could be sustained endlessly.

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Authors and Affiliations

  1. Department of Accounting, Northwest University Kano, Kano, Nigeria

    Umar Habibu Umar

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  1. Umar Habibu Umar
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Editors and Affiliations

  1. Islamic Research and Training Institute, Islamic Development Bank, Jeddah, Saudi Arabia

    Khalifa Mohamed Ali

  2. Department of Economics and Finance, University of New Orleans, New Orleans, LA, USA

    M. Kabir Hassan

  3. Islamic Research and Training Institute, Islamic Development Bank, Jeddah, Saudi Arabia

    Abd elrahman Elzahi Saaid Ali

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Umar, U.H. (2019). Integrating Family Waqf into an Inheritable Going Concern Business: An Instrument for the Sustainable Welfare of Exempted Heirs. In: Ali, K., Hassan, M., Ali, A. (eds) Revitalization of Waqf for Socio-Economic Development, Volume II. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-18449-0_4

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  • DOI: https://doi.org/10.1007/978-3-030-18449-0_4

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  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-030-18448-3

  • Online ISBN: 978-3-030-18449-0

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