Frequently Asked Questions
1. What is Hibah and the meaning of Amanah Hibah?
Hibah is a gift of asset(s) made voluntarily by a donor during his/her lifetime to the beneficiary without any consideration.
Amanah Hibah is a contract/ agreement of gift of asset(s) made by the donor during his/her lifetime for the benefit of the beneficiary(ies) without any consideration and the asset is entrusted to the appointed trustee to be held for the benefit of the beneficiary(ies) for a certain period of time under a Hibah Deed executed by the donor and the beneficiary(ies) and a Trust Deed executed by the beneficiary(ies) and the trustee.
2. What is Hibah Al-Umra & Hibah Al-Ruqba?
Both are conditional forms of Hibah.
Al-Umra refers to an asset(s) given during the lifetime of the beneficiary or the Donor with the condition that the asset(s) will revert to the donor upon the death of beneficiary (or to the donor’s rightful heirs upon death of the donor).
Al-Ruqba refers to a conditional gift where the donor determines that the asset(s) given to the beneficiary will belong to the beneficiary upon the donor’s demise. However, if the beneficiary dies before the donor, the asset(s) will revert to the donor.
3. Does AmanahRaya offer Hibah Al-Umra & Hibah Al-Ruqba
Not at the moment
4. What are the requirements & conditions of Hibah?
A Hibah agreement will not be formed unless the requirements and conditions below are met and fulfilled:
5. What are The Terms and Conditions of a Donor?
- The Donor of Hibah (al-Wahib)
The donor must be an independent adult of sound mind, has attained puberty and of sensible conduct (rushd). The donor must be the legal owner of the asset(s). This gives the donor full authority over the asset(s), enabling him/her to fully ascertain the extent or amount he/she wishes to give as Hibah, and to whomever he/she chooses, which includes a Non-Muslim, subject to the pre-requisite that the Deed of gift does not violate Syariah Law.
- The Beneficiary of Hibah (AL-Mawhublahu)
A beneficiary of Hibah can be any person whether a Muslim or Non-Muslim, as long as the person is able to inherit the asset by bequest as an adult (mukallaf) or a minor. The beneficiary must be able to accept the asset endowed to the beneficiary and be able to exercise ownership over the asset. In other words once an asset is given by hibah to the beneficiary, ownership and control over the asset is transferred to the beneficiary. If the beneficiary is not an adult or has a disability, a representative (Wali Mal) or trustee may be appointed to accept the asset on its behalf.
- The Asset(s) Bequeathed as Hibah (Al-Mawhub)
Asset(s) endowed as Hibah must fulfil these requirements:
- The asset may be movable or movable or immovable property free from encumbrances and must be halal (that is permitted or allowed by Syariah Law).
- The asset(s) must have value under Syariah Law.
- The Donor must have ownership over the asset(s).
- The ownership over the asset(s) is transferable.
- The asset(s) is in existence at the time of the Hibah.
- The asset(s) is not conjoined with other asset(s) of the Donor of which ownership cannot be transferred.
- Sighah (method to manifest the intention to contract) by Ijab (offer) and Kabul (acceptance).
Sighah refers to a verbal or non-verbal agreement or conduct that signifies the offer and acceptance of the gift of Hibah. It is bound by the following:
- There is offer and acceptance
- There is connection between the offer and acceptance and similarities between what is offered and what is accepted.
- No preconditions exist on the asset(s).
- No specific time frame is attributed as a term for the asset(s).
The Donor must be an individual who:
- Has legal ownership of the asset(s) to be endowed as Hibah.
- Has the capacity to administer the asset(s).
- Is 18 years and above, and
- Is not a bankrupt or suffering from a terminal ailment (maradh al-maut)
6. Can Hibah be performed by a Non-Muslim?
7. What are the terms and conditions of a Beneficiary?
The beneficiary can be a Muslim or Non-Muslim, an adult (mukallaf) or a minor who is capable of owning an asset(s). For a minor, a designated representative, executor (wasi) or guardian will accept and receive the Hibah asset(s) on its behalf.
8. Can Hibah be undertaken without the knowledge of the beneficiary?
No. One of the conditions of Hibah is that there has to be an agreement between the donor and the beneficiary of the Hibah and acceptance of the Hibah asset(s) by the beneficiary. Thus, it is not possible to perform Hibah without the knowledge of the beneficiary.
9. Is it possible to revoke an asset(s) bequeathed as Hibah? If it is, under what situation or conditions?
The revocation of Hibah is not permissible unless it involves the endowment of an asset(s) between parents to their children or from grandparents to their grandchildren.
If there is acceptance by both donor and beneficiary to revoke the Hibah, the revocation of Hibah is encouraged. However, the revocation is on the condition that the Hibah asset(s) is still in the ownership of the children or grandchildren. If the asset(s) in question has been sold, donated or bequeathed as Hibah to another beneficiary by the children or grandchildren and has been accepted by the other beneficiary (another individual), the Hibah is rendered irrevocable.
If the asset(s) is held by the trustee for the benefit of the children or the grandchildren, the children or the grandchildren cannot sell, donate or bequeath the asset(s) until the determined time when the asset(s) is transferred to the children or grandchildren’s name.
10. How much authority does a donor have over the asset(s) bequeathed?
Once the asset(s) is given or endowed as Hibah, the donor will cease to have any authority over the asset(s). However, the donor may determine a condition that would entitle him/her to the benefits of the asset(s) as long as the beneficiary agrees with the condition.
11. What becomes of the asset(s) should the beneficiary die before the donor?
Should the beneficiary die before the donor, the asset(s) will become part of the estate of the beneficiary and would not revert to the donor except under the conditions as stipulated by Syariah Law.
12. What are the procedures of Hibah?
A donor who wishes to undertake Hibah, must complete the AmanahRaya Hibah Application Form and execute the prescribed procedures set by Amanah Raya Berhad.
13. What are the required documents to apply for AmanahRaya Hibah?
The required documents are as follows:
- The AmanahRaya Hibah Application Form
- A photocopy of the Identity Card donor/Beneficiary/Representative/Guardian/Witness
- AmanahRaya Hibah Fee Payment
For Immovable property (as Hibah asset(s)):
For Movable property:
- A copy of the Land Title Deed (Land Grant/Strata Title)
- A copy of Fire Insurance Policy
- Original receipts of Quit Rent/Current assessment tax
- Original receipts of assessment tax
- Deposit payment for expenses incurred
- AmanahRaya Hibah Fee
- Estimated ad valorem stamp duty
- Cash/Cheque (as Hibah asset)