Giving Hibah to Non-Muslim and Giving Conditional Hibah / Ct Dalila Abdul Ghani … [et al.]

Hibah is one of the important instruments used in Islamic wealth management. Hibah arises when a person unilaterally or without proper deliberation transfers their asset to another person throughout their lifetime. When hibah is written in its original form, it is considered as a tabarru' contract, meaning it is made voluntarily. In Islam, the practise of delivering the hibah is encouraged because it advances the idea of maqasid of Shari'ah in terms of safeguarding money and fostering interpersonal relationships. In Malaysia, Muslims typically use the hibah instrument to plan the distribution of assets to the intended beneficiaries regarding assets. Under this arrangement, ownership of the asset transferred to the beneficiary either while the donor is still alive or in certain restricted situations, conditionally passed over after the donor's death (Hassan & Zaizi, 2020).

There is an assumption that the hibah practise might break a will or the faraidh law. This assumption, however, is inaccurate because the property owner retains the ability to choose the recipient and the amount of property to be delivered of: and this approach has been demonstrated to be among the most successful. Some people are even unaware that it exists. More asset and property institutions and agencies have introduced and encouraged Muslims to adopt and use this method to prevent any protracted disputes in Syariah courts and conflict within the family regarding property distribution. This is due to the current development in Malaysia regarding Muslims' property and asset management, as well as this realisation and benefits (Yusof & Ahtnad, 2013).