Hibah is a gift made during life, taking effect immediately.
The Canadian position
Canadian law recognises inter vivos gifts, with capital gains triggered on appreciated property.
Canadian law gives effect to whatever a valid will says, so an Islamic concept takes effect here through the drafting rather than automatically.
The Islamic position
Not subject to the one-third cap, but a gift made in the final illness is treated as a bequest.
Confirm the position for your own family and school with a qualified scholar rather than relying on a general summary.
All four schools treat a gift as an act that has to be completed, not merely intended or announced, and in every school the completing act is qabd — the donee actually taking the thing. What they differ over is what qabd does. For the Hanafis and the Shafi’is nothing at all happens until possession is taken: no ownership passes, and the donor may still change his mind. For the Hanbalis ownership passes on the contract but the gift only becomes binding on delivery. For the Malikis the gift is valid on offer and acceptance and the donee can go to a judge to force delivery, but it is not binding until he has it. The practical consequence is the same in every school and it is the one that matters when someone has died: a gift that was promised but never delivered is not a completed gift, and the asset was still the deceased’s when he died.
All four Sunni schools researched and sourced. Reviewed 2026-09-01. Full positions, evidence and sources — When is a lifetime gift complete and beyond recall?.
Related madhhab issue: A gift made in the final illness — gift or bequest?.
Related madhhab issue: The one-third cap on a bequest.
Making an Islamic will in Canada — province by province, and what makes one valid where you live →
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 a source below. Details change — check the original source before relying on any figure, fee or legal position. Anything under “further reading” is related material, not a source for what is stated here.
- Sahih al-Bukhari, Book 55: Wills and Testaments (Wasaya) — Sunnah.com
- Sahih Muslim, Book of Wills — Sunnah.com
- What to do when someone has died — Canada Revenue Agency
- Difference inter vivos testamentary trust ontario — Treadstone Law
- Testamentary vs inter vivos trust ontario difference — Treadstone Law
- Spouse title change capital gains rollover ontario — Treadstone Law
- Testamentary trust vs inter vivos trust tax rates — Treadstone Law
- Wills & estates practice — Treadstone Law