Sharia Compliant Foundations And Trusts In The Channel Islands

Islam is the second largest and fastest growing religion in the world. When protecting and preserving his wealth, the client must, with professional advice, take into account not only the various tax liabilities of his country of residence but also the likely impact of any forced heirship provisions. A foundation or a trust can be modified to form an important part of a client's lifetime tax planning strategy creating a flexible long term structure to address certain succession issues which are inherent under Islamic Law.

Succession under Sharia law

Under Sharia law, there are succession/forced heirship rules which will be different for each school, but generally:

• At least two-thirds of the estate must be distributed to surviving family in fixed shares, in accordance with Islamic law.