Hiba & Waqf: Gifts and Endowments in Islam
Your legacy is not only what you leave behind, but also the good you establish during your lifetime. Explore Hiba and Waqf as part of a comprehensive Islamic legacy planning journey.
Hiba
A Hiba is an immediate, unconditional gift of something you own, made during your lifetime. It can be given to any person, including your spouse, children, relatives, or others. It is only complete when there is a clear offer, acceptance by the recipient, and transfer of possession (qabd). Until possession is transferred, the Hiba is not complete.
Because a Hiba takes effect during your lifetime, it is not part of your estate and is not subject to Faraid after your death.
Unlike a wasiyyah (Islamic bequest), a Hiba has no one-third limit, as it is given from your own wealth while you are alive. You may only gift assets you genuinely own and can transfer immediately.
Waqf
A Waqf is the permanent dedication of an asset for the benefit of a charitable cause or your descendants. The asset itself is preserved forever, while only its benefits such as rent, income, or produce are distributed. Once established, a Waqf is irrevocable; the asset cannot be reclaimed, sold, inherited, or gifted away.
A Waqf can be established during your lifetime or created through your Will, to take effect after your death. However, when a Waqf is created through a Will (Waqf by wasiyyah), it is generally treated like any other wasiyyah; meaning it can only be funded from up to one-third of your estate, after funeral expenses and debts are settled. If it exceeds one-third, the excess requires the consent of your heirs after your death (according to the majority of scholars).
A Waqf may consist of property, cash, a business interest, or any asset capable of providing lasting benefit. It may be established for a public charitable purpose or as a Family Waqf (Waqf Dhurri) for your descendants.
Since a Waqf is permanent and irrevocable, provide for your dependents first — don't dedicate assets your family will actually need.
Making a Hiba
- Decide what you're gifting, and to whom.
- Make a clear offer, and have the recipient accept it.
- Actually transfer possession; this is what completes the gift.
- Put it in writing for clarity and future evidence.
- Weigh fairness among your children before finalising.
Establishing a Waqf
- Choose the asset you want to dedicate permanently.
- Define its purpose and who benefits from it.
- Appoint a mutawalli (administrator) to manage it.
- Draft a waqf declaration (waqfnama) stating it's permanent.
- Register it with the relevant waqf authority or legal trust.
- Arrange ongoing management and reporting so it keeps serving its purpose.
Please note:
- We can provide information and guidance on the Islamic principles of Hiba and Waqf.
- We can assist you in drafting Hiba and Waqf documents based on the information you provide.
- We can not approve, certify, execute, register, or administer Hiba or Waqf arrangements.
- For legal validity, execution, registration (where required), please seek assistance from a legal professional.