It depends on the shareholders agreement more than the will. Many agreements compel the estate to sell shares at a set price.
The Canadian position
A buy-sell provision can override what the will says about the business. The deemed disposition on death can also create a large tax bill on private company shares.
The Islamic position
The value the estate actually receives is what the faraid shares apply to. If a shareholders agreement fixes a below-market price, the heirs bear that.
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
- Read the shareholders agreement before drafting the will.
- Model the tax on the deemed disposition.
- Consider whether an estate freeze fits — and take scholarly advice, since it moves growth outside the estate.
General information, not legal or religious advice. Inheritance depends entirely on the exact family circumstances. Confirm the Canadian position with a lawyer in your province and any religious ruling with a qualified scholar.
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.
- 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
- Canadian Legal Information Institute — CanLII
- What to do when someone has died — Canada Revenue Agency
- Income Tax Act, RSC 1985, c 1 (5th Supp) — Justice Laws Canada
- Naming a successor trustee in ontario — Treadstone Law
- Estate trustee personally liable delayed sale depreciation ontario — Treadstone Law
- Joint partner trust vs spousal trust difference — Treadstone Law
- Trustee duty to invest ontario — Treadstone Law
- Joint partner trust ontario — Treadstone Law
- Trust as beneficiary ontario — Treadstone Law
- Wills & estates practice — Treadstone Law