Pri-Hibah Declaration
A specialized instrument to safeguard your intended beneficiaries through the Islamic principle of gifting.
What is Pri-Hibah?
Hibah represents the voluntary transfer of asset ownership from a donor to a recipient without exchange or compensation. It involves a definite proposal by the giver and acceptance by the receiver.
Pri-Hibah is a specialized product by as-Salihin designed to utilize Hibah as a secure mechanism for safeguarding the rights of your intended beneficiaries.
Technically, it acts as a Declaration of Hibah. In this legal document, the asset owner (Settlor) declares the gift to the beneficiary but continues to hold the asset on their behalf. The document explicitly outlines the terms and conditions under which the Settlor holds the asset, ensuring clarity and protection.
Key Characteristics
Understanding the unique features of the Pri-Hibah declaration.
Immediate Effect
The declaration becomes valid and enforceable immediately at the time the document is executed, securing the asset instantly.
Limited Revocability
Generally, a Hibah cannot be revoked. However, an exception exists for gifts from a parent or grandparent to a child or grandchild.
Outside Faraid
Assets under Pri-Hibah are not subject to Faraid distribution rules. Instead, they are distributed strictly according to the terms of the declaration.
Advantages of Creating a Pri-Hibah
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Balance Distribution
Since the asset is removed from the Settlor's estate (Estate Exception), it falls outside Faraid rules. This allows you to balance the distribution among heirs or provide for non-heirs as you see fit.
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Protection During Incapacity
Unlike a Will that only takes effect upon death, Pri-Hibah assures the Settlor that beneficiaries are taken care of even in the event of the Settlor’s permanent disability or incapacity.
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Lifetime Enjoyment & Control
The Settlor continues to enjoy the benefits of the asset while alive. Additionally, they can appoint a protector to safeguard the interests of minor beneficiaries.
Safeguard Your Legacy with Pri-Hibah
Ensure your assets are distributed according to your exact wishes with immediate effect and comprehensive protection.