The Impact of It to Banking Industry Essay Sample

1. 0Introduction

As portion of their lives. persons are engaged in bring forthing wealth and utilizing this for their ain prosperity. The direction of this created wealth is an of import issue. as persons are expected to besides pull off their lives with this wealth. It is the concern of this survey to look into how wealth is perceived by wassiyah method and how it is distributed by persons in the signifier of heritage. Islamic theory of wealth provides utile guidelines in relation to wealth ownership. wealth direction and fiscal planning. The impressions of wealth in Islam are based on philosophic foundations derived from two primary beginnings viz. Al-Quran. and Hadith. the expressions of the Prophet of Islam. The whole conceptualisation of wealth and its usage must hence be consistent with Shariah or the Muslim Jurisprudence.

In a simple description. there is no limitation for Muslims to reassign their belongings while they are alive. but upon the decease. the estate transportation is automatically capable to faraid and bequest mandatary regulations. Faraid has pre-determined the figure of portions which eligible inheritors should acquire after subtracting burial disbursals. debts to Allah and other people. the rights of partner to reciprocally acquired belongings. uncomplete life-time transportations and bequest. Due to this. for Malayan Muslims. go forthing a wasiyyah ( will ) is a important portion of the Islamic estate planning. as the job of estate in Malaysia is the most common job cited in the literature as a consequence of non go forthing a wasiyyah. These unclaimed assets are wastage as they can non be utilized for economic intents. Other relevant jobs are those such as household differences. information sing assets and liabilities non being easy accessible. fraud. and jobs related to the campaigners. ( Alma’Amun. 2010 )

2. 0Research Problem
Muslim estate planning is about wholly neglected by Muslims in general and in Malaysia peculiarly. Today. in a modern and complex universe. go forthing a written will is important. and it implies that Islamic estate planning for Muslims demands a proper planning beyond the proviso of faraid and bequest. Most Muslims in Malaysia do non see estate planning earnestly and some of them are doubting about doing a wasiyyah. which is evidenced by holding big figure of Malayan Muslims non holding wasiyyah. Findingss imply that the awareness degree of wasiyyah was low reflecting their unequal exposure of the wasiyyah opinion. professional agencies of wasiyyah authorship and the importance of wasiyyah in estate planning. Therefore. wasiyyah pattern was a minority activity.

Other findings reflect doing a wasiyyah by agencies of traditional methods either handwritten by themselves or verbal wasiyyah were common. Several factors were identified to be important to the wasiyyah pattern viz. sum of heritage received antecedently. wellness position. holding kids. holding adopted kids. holding grandchildren. cognition. institutional factor and heritage jurisprudence. Other findings show that mass media were the chief beginnings of their cognition and to increase their consciousness. The survey besides found that there was a struggle of involvement in wasiyyah composing suppliers in footings of increasing consciousness. educating people and net income maximization. They besides differed in their perceptual experience on the ability of wasiyyah entirely work outing the estate job comprehensively and demoing their concerns over the use of several estate planning instruments to avoid faraid. ( Alma’Amun. 2010 )

3. 0Research Questions

I. What is the degree of consciousness of wasiyyah among Malayan Muslims? II. What is the degree of understanding about Islamic estate planning among Malayan Muslims?
III. What are the factors that influence the wasiyyah pattern among Malayan Muslims?
IV. What are the functions of Islamic estate planning and wasiyyah for Muslims and how are they affected by Malayan Muslims fortunes?
V. What are the functions of other methods of estate transportations in Islamic estate planning?

4. 0Literature Reappraisal
The significances of pull offing wealth are to avoid any troubles between the proprietor of the belongings and the populace which may originate due to improper wealth direction and to guarantee the circulation of wealth in the community. therefore exciting the growing of the wealth and guaranting a better distribution of the wealth among society ( Muda et al. . 2006:11 ) . General guidelines of wealth direction are as follows: it should non harm the proprietor. others and the environment ; no entire denationalization as certain belongingss belong to the public ownership and society has rights towards individual?s belongings ( Muda et al. . 2006:11–12 ) . Taking into consideration that Muslims are educated to pull off their wealth non merely for themselves but for others every bit good. therefore leads them to apportion a portion of their wealth for the intent of charity in the signifiers of the contribution. gift or waqf. Charitable giving is encouraged in which Muslims could pass out of their wealth on their family. orphans. the needy. the wayfarer and those who ask. and for the ransom of slaves ( Quran. 2:177 ) . Fiscal planning is a procedure of run intoing an individual?s fiscal ends. In order to carry through his fiscal ends. a set of schemes or future programs is structured and tailored in line with the individual?s abilities and demands.

Fiscal be aftering involves six stairss: it begins with set uping the realistic ends and aims ; garnering the information and information needed ; roll uping and analysing informations ; developing solution and showing the program of action ; implementing the program ; and monitoring and reexamining the program sporadically. A comprehensive fiscal planning encompasses a figure of critical personal fiscal countries such as hard currency flow planning. revenue enhancement planning. investing direction. hazard direction. retirement planning. estate planning. particular fortunes planning. employee benefits and educational planning ( Altfest. 2007:6– 10 ) .

Wealth direction in Islam does non disregard the duty to guarantee the wealth is circulated every bit widely as possible and inheritance affair. This is really the map of wealth distribution. the concluding phase of wealth direction. with the intent of seeking the proper planning to administer the wealth through estate planning. concern sequence planning. charitable and zakah planning. There are plentifulness of mechanisms for this intent such as zakah. will. faraid. bequest. hibah and waqf. trust. sadaqah ( contributions ) . infaq ( gift to Islamic cause ) . hadiyah ( present. gift ) . nazar ( vow ) and statutory temperament ( Billah. n. d. a ; Rasban. 2006:191–199 ) . 49 It can be seen that wealth direction in Islam covers a broad spectrum in the sense that it brings benefits non merely for the person and the household. but besides to society.

In the absence of a will. wealth will be automatically distributed amongst those lasting relations who are entitled to fixed portions in conformity with the faraid Torahs. In the absence of the inheritors. so the estate will automatically travel to the Baitul Mal. For Muslims remaining in any state where the dominant jurisprudence is non Shari?ah so deceasing intestate brings such large jobs in the affair of estate temperament that the estate will likely travel to the authorities in the absence of any lasting inheritors ( Haqq et al. . 1995:37 ) . Depending upon the single state of affairs. composing a will in Islam may go obligatory ( wajib ) . supererogatory ( Sunnah ) . improper ( haram ) . hateful ( makruh ) or allowable ( mubah ) . When a individual has any unrealized duties whether related to the rights of the fellow worlds ( huququlibaad ) such as debts or the rights of Allah ( huququl-lah ) for case unpaid zakah or pilgrim’s journey ( Hajj ) to be fulfilled. he so. is obliged to pull up a will and must declare these rights in his will. If he has perfectly nil to declare in the will so. it will still be excess for him to pull a will. Under this circumstance. composing a will is encouraged for the benefits mentioned antecedently.

One should be cognizant that certain volitions are out and improper ; foremost if it is meant to alter the portions which the faraid has stipulated for the inheritors or by disowning an inheritor so ; secondly. doing a legacy in favor of a absolutely legitimate object on the evidences that the testator?s primary purpose is to strip his legal inheritors of any rights on the belongings and thirdly. doing bequest in favor of something forbidden by the jurisprudence such as intoxicants and chancing. Such volitions are wholly void and nothingness. When the inheritors are in demand of the wealth. the will composing becomes hateful or giving bequest to person who is known fasiq or has a inclination to utilize the belongings for illegal intents. It could be allowable if the will is written in order to do a legacy to the hapless. non-heir relations and for the proviso of public goods to the society. The class of will which is supererogatory would be utile for estate distribution as a complementary device to faraid in the sense that it allows Muslim to use the legacy as a significant channel to suit the demand of Muslims in make up one’s minding their estate allotment given by the different instances and state of affairss originating among them ( Al-Khin et Al. . 2005:1044–1045 ; Tanzil-ur-Rahman. 1980:218 ; Coulson. 1971:224 ) .

5. 0Research Model

Dependent Variables

Independent Variables

From the diagram above we can see from the model research the dependant variable from this research is the attitudes of wassiyah patterns. Meanwhile the independent variables for this research are sociedemograhic fgactor such as matrimonial position. instruction degree. holding non-muslims kids. holding adopted kids and havinf non-muslims parents. awareness degree of patterns wassiyah was low. doing wassiyah by traditional method. economic factros comprised employement position. entire value of assets and sum of heritage received perviously and inheritance low. As we can see the attitudes of wassiyah patterns will non impact the independent variables but the independent variable that consists will impact the attitudes of wassiyah patterns. All the independent variables will impact the dependent variables.

6. 0Research Hypothesis

6. 1Sociodemographic factors

• Marital Status

H1: There is no important relationship between matrimonial position and the wasiyyah pattern

H2: There is a important relationship between matrimonial position and the wasiyyah pattern.

• Education Level

H1: There is no important relationship between instruction degree and the wasiyyah pattern.

H2: There is a important relationship between instruction degree and the wasiyyah pattern.

• Having non-Muslim kids

H1: There is no important relationship between holding non-Muslim kids and the wasiyyah pattern

H2: There is a important relationship between holding non-Muslim kids and the wasiyyah pattern.

• Having adopted kids

H1: There is no important relationship between holding adopted kids and the wasiyyah pattern.

H2: There is a important relationship between holding adopted kids and the wasiyyah pattern.

• Having non-Muslim parents
H1: There is no important relationship between holding non-Muslim parents and the wasiyyah pattern.

H2: There is a important relationship between holding non-Muslim parents and the wasiyyah pattern.

2. Awareness degree of patterns wasiyyah was low

H1: There is no important relationship between awareness degree of patterns wasiyyah was low and the wasiyyah pattern.

H2: There is a important relationship between awareness degree of patterns wasiyyah was low and the wasiyyah pattern.

3. Economic factors

• Total value of assets
H1: There is no important relationship between entire value of assets and the wasiyyah pattern.

H2: There is a important relationship between entire value of assets and the wasiyyah pattern.

• Amount heritage received antecedently
H1: There is no important relationship between sums of heritage received antecedently and the wasiyyah pattern.

H2: There is a important relationship between sums of heritage received antecedently and the wasiyyah pattern.

4. Making a wasiyyah by agencies of traditional methods

H1: There is no important relationship between doing a wasiyyah by agencies of traditional methods and the wasiyyah pattern.

H2: There is a important relationship between doing a wasiyyah by agencies of traditional methods and the wasiyyah pattern.

5. Inheritance Law

H1: There is no important relationship between Inheritance Law and the wasiyyah pattern.

H2: There is a important relationship between Inheritance Law

and the wasiyyah pattern

7. 0Reserach Data and Method

7. 1Primary informations aggregation methods
With the regard to the informations aggregation attack. a assorted or triangulation method was used. The quantitative research is represented by the aggregation of informations through questionnaires which were quantified before they were analyzed. while qualitative research is characterized by the aggregation of informations through semi-structured interviews. ( Alma’Amun. 2010 ) • Questionnaire Design

The questionnaire used for this research was designed in such a manner to react to the already defined research inquiries. As such. it consisted of six parts: respondent?s background. wasiyyah pattern. pattern and attitudes towards go forthing a wassiyah. motivations of go forthing a wassiyah. respondents knowledge on Islamic estate planning and wasiyyah and wasiyyah composing supplier. Noting the defects of using the questionnaire method. consequently the building of the questionnaires was based on old surveies which were carried out within the same country of involvement. therefore assisting to avoid the interviewer from inquiring unrelated and equivocal inquiries. Therefore. for the intent of probe consciousness and wasiyyah pattern. most of the inquiries were developed with the aid of bing surveies. ( Alma’Amun. 2010 )

• Sampling
In relation to the sampling for the semi-structured interview. the research worker tried to acquire every bit many as respondents as possible from all the large wasiyyah composing suppliers. Most of the large wasiyyah composing suppliers were the people who have written much about Islamic estate planning in magazines. books and conference documents. Therefore they were easy identified and fortuitously. since they are in the same field. they knew each other really good and helped the research worker to acquire her possible interviewees. Finally. 15 wasiyyah composing suppliers from assorted large wasiyyah composing supplier and canvassers were willing to take part. The same justifications provided in the above subdivision sing the choosing of purposive sampling in questionnaire besides apply in the instance of the sampling for the semistructured interview. Wasiyyah composing suppliers selected for interview were those well-known professional people who the research worker believes possessed the needed facts and could give the information sought via in-depth probe. ( Alma’Amun. 2010 ) .

Mentions

Alma’Amun. S ( 2010 ) . “Islamic Estate Planning: Analyzing The Malayan Perceptions On Wasiyyah ( Will ) And Bequest Practices” .

Muda M. Z ; Yusof. W. and Zakaria. Z. ( 2006 ) . “Konsep Harta dan Kepentingan Pengurusannya Menurut Perspektif Islam” ( The Concept of Wealth and The Importance of Its Management Harmonizing to Islam ) . in Prosiding Seminar Kebangsaan Pengurusan Harta dalam Islam ( Proceeding of the National Seminar of the Wealth Management in Islam ) ( pp. 1-14 ) . Selangor. Malaya: Universiti Kebangsaan Malaysia ( UKM ) and Kolej Islam Pahang Sultan Ahmad Shah ( KIPSAS ) .

Altfest. L. W. ( 2007 ) . Personal Financial Planning. New York: McGraw-Hill Irwin.

Al-Khin. M. ; Al-Bugho. M. and Asy-Syarbaji. A. ( 2005 ) . Kitab Fikah Mazhab
Syafie ( The Book of Fiqh of the Shafi?i School ) . ( Translated by A. Salehan ) . Volume 5. Kuala Lumpur: Pustaka Salam Sdn. Bhd.

Billah. M. M. ( n. d. a ) . Muslim Financial Planning. Available at: .
Access Date: 16th May. 2007.