Passes through the estate and is subject to the deemed disposition on death.
The Canadian position
Passes through the estate and is subject to the deemed disposition on death.
Whether an asset passes through the estate determines both the probate cost and who ultimately receives it.
The Islamic position
Where one heir will run it, valuing it and offsetting against their share is usually cleaner than fragmenting ownership.
The fixed shares apply only to the net estate. Anything passing outside it is never divided by faraid.
The four Sunni schools are not recorded as differing materially on this point in the sources reviewed. Where your own case turns on it, put it to a scholar of your school.
What to do about it
- Confirm how your a business you own outright is currently held or designated.
- Decide deliberately whether it should follow the shares.
- Take tax advice before changing a designation.
- Re-check whenever the will changes.
This is legal information only. For advice on your own circumstances, speak to a lawyer.
Citations & sources
Every factual claim on this page traces to one of the references below. Legislation and dollar thresholds change — verify against the primary source before relying on any figure.
- Surah an-Nisa 4:11 — shares of children and parents — Quran.com
- Surah an-Nisa 4:12 — shares of spouses and uterine siblings — Quran.com
- Surah an-Nisa 4:176 — the kalalah verse — Quran.com
- Research Papers — Cambridge Muslim College
- Research — Cambridge Muslim College
- Academics — Islamic law and theology curriculum — Zaytuna College
- Encyclopaedia of Islam — Brill
- T3 Trust Guide — Canada Revenue Agency
- What to do when someone has died — Canada Revenue Agency
- Income Tax Act, RSC 1985, c 1 (5th Supp) — Justice Laws Canada
- Henson trust ontario odsp disabled beneficiary — Treadstone Law
- Alter ego joint partner trust ontario probate — Treadstone Law
- Difference between executor and estate trustee ontario — Treadstone Law
- Trustee compensation taxable income — Treadstone Law
- Who holds deposit in trust ontario real estate — Treadstone Law
- Capital gains election trust into beneficiary hands — Treadstone Law
- Wills & estates practice — Treadstone Law