Fatwa #1535518 June 2007South Africa
Is it permissable to distribute the shares later( if a deadline is given) and all shareholders agree?
Question
My father passed away. he had a business in which he was partners with a son. most of the profit from this business was invested maybe in properties and buying a premises for the business. considering the above it is not possible to distribute the shares immediately. is it permissable to distribute the shares later( if a deadline is given) and all shareholders agree? will there be any sin in delaying? (NB even though all shareholders are fully aware that they will receive their shares later.
Answer
In the name of Allah, Most Gracious, Most Merciful
Assalaamu `alaykum waRahmatullahi Wabarakatoh
It is advisable to distribute the estate of the deceased as soon as possible. However, since it is not practical to liquidate the entire estate immediately, the executors may set up a time frame in which the entire estate may be liquidated with the consent of the heirs.
It will also be correct if the heirs agree to take up their respective portions (of the estate) in the form of shares in the properties, instead of liquidating the estate.
And Allah knows best
Wassalam
Mufti Ebrahim Desai
Darul Iftaa