Fatwa #1586118 November 2007South Africa
Would the proceeds of this fund be regarded as inheritance?
Question
My sister is unmarried, we have no parents and she has no children, only four sisters and two brothers in total. She has no assets and only has a compulsory pension fund. Would the proceeds of this fund be regarded as inheritance should she pass away before her siblings. If so, what is the distribution according to Shariah?
Answer
In the name of Allah, Most Gracious, Most Merciful
Assalaamu `alaykum waRahmatullahi Wabarakatoh
The proceeds of the compulsory pension fund will be regarded as a gift in behalf of the company to whoever is nominated as the beneficiary of the proceeds after her death. The proceeds will not be regarded as her inheritance as she did not own the money in her lifetime.
And Allah knows best
Wassalam
Mufti Ebrahim Desai
Darul Iftaa