Fatwa

Undisbursed profits forming part of the inheritance

Question

Assalamu alaykum
I would like to know on deceased estate
My mother was a partner in my brother’s business,she had a 10% share on profits, the business started in 1997 and she passed away in 2005,he share on profits was not disbursed to date,profits of the business, filtered into more properties and businesses,
What does the Shari’a say on her estate? Does her share of profits cease on her demise? Or her share of profits continue to date? As her shares were not disposed to date

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

It is necessary to differentiate between profit percentage share and actual ownership share. Whatever percentage of the business that was owned by your mother shall form part of her estate and shall automatically transfer to her Islamic heirs in proportion to their Islamic shares.

As for the undisbursed 10% of profits for the past years, these shall be owed to the estate of your mother by the business and shall in turn be distributed to her heirs. However, if the same profits were used to purchase other assets and properties, your mother shall automatically become a proportionate owner in said assets and properties, and these shall therefore form part of her estate.

If this matter is one of potential dispute between existing parties/heirs/siblings, we require that the matter be brought to the Darul Iftaa or any other reputable Mufti/Darul Iftaa collectively by all parties involved in order to ensure that the verdict issued has taken into account all facts of the case.

And Allah Ta’āla Knows Best

Mufti Bilal Pandor

Concurred by
Mufti Muhammad Patel

Darul Iftaa Mahmudiyyah
Lusaka, Zambia

www.daruliftaazambia.com