What is the difference between faraid, hibah and wasiat, and when is each one suitable?

A gift (hibah) is given during your lifetime, a will (wasiat) takes effect after death, and faraid divides the remaining property among the heirs according to Islamic law. Hibah suits a situation where you want someone to own something now, for example a house for your wife. It must be fully handed over while you are alive. A will is for non-heirs, such as an adopted child, a son- or daughter-in-law or a mosque, and is limited to one third of the estate. Faraid is the basis for all remaining property, and it cannot be avoided with tricks. Combining all three, if planned fairly and openly, can bring a family peace of mind. List your assets first, then talk to an accredited Islamic estate planner. See managing an estate.