Last month, I received a panicked WhatsApp message from Siti, a 42-year-old widow from Tampines. Her husband had passed away suddenly, leaving behind their 4-room HDB flat and two young children. What she discovered next shocked her to the core.

Despite being married for 15 years and assuming she would inherit everything, Siti learned that under Islamic inheritance law (Faraidh), she was only entitled to 1/8th of her husband's estate. The remaining 7/8ths? It would be distributed among his parents, siblings, and children according to specific Islamic guidelines.

"I thought our savings and his business would just come to me," she told me, tears streaming down her face. "Now I have to share everything with his siblings, and I don't know how I'll support the children."

Siti's story isn't unique. It's happening to Muslim families across Singapore every single day.

The Faraidh Reality Check Every Singaporean Muslim Must Face

If you're a Muslim living in Singapore, there's a 68% chance you have dangerous misconceptions about who inherits your assets when you die. These aren't small misunderstandings – they're family-destroying, wealth-depleting mistakes that could leave your loved ones financially devastated.

Here's the uncomfortable truth: Most Singaporean Muslims have never properly learned about Faraidh, the Islamic system of inheritance that governs how your wealth must be distributed after death. They assume Singapore law or their own wishes take precedence. They don't.

What Exactly Is Faraidh?

Faraidh (also spelled Faraid) is the Islamic inheritance system directly ordained by Allah in the Quran. It's not a suggestion or cultural tradition – it's a divine commandment that determines exactly who inherits what portion of a Muslim's estate.

The word "Faraidh" comes from the Arabic root meaning "obligation" or "duty." When the Quran dedicates detailed verses to inheritance (particularly in Surah An-Nisa), it's sending a clear message: this isn't negotiable.

Key Quranic verse: "These are the limits set by Allah. Whoever obeys Allah and His Messenger will be admitted to gardens beneath which rivers flow, to dwell therein forever; that is the supreme achievement." (Quran 4:13)

Why Singapore's Muslim Community Struggles With Faraidh

The HDB Ownership Reality Check

Here's what most Singaporean Muslims believe: "My HDB flat is in both our names, so my spouse automatically inherits everything."

The truth depends on HOW you own your HDB flat:

Single Ownership: The flat is owned by one person only. Upon death, it becomes part of the estate and is subject to Faraidh distribution.

Joint Tenancy: Your surviving spouse gets the entire flat automatically through "right of survivorship" - this is NOT subject to Faraidh distribution. Most HDB flats are held this way.

Tenancy-in-Common: Your share of the flat (usually 50%) becomes part of your estate and MUST be distributed according to Faraidh. Your spouse only keeps their own percentage.

The dangerous assumption: Many couples don't even know which type of ownership they have. If you hold your flat under single ownership or as tenants-in-common, your spouse could be forced to buy out your relatives' shares or sell the family home.

The CPF Relief (But Don't Celebrate Yet)

"I've nominated my wife for my CPF, so she gets it all, right?"

Correct. CPF nominations are binding and the funds go directly to your nominated beneficiaries - they don't form part of your estate subject to Faraidh distribution. This is one of the few assets that bypass Islamic inheritance law in Singapore.

However, many Muslims don't realize this means they should be even MORE careful about their other assets, since CPF might be the only wealth their spouse receives directly.

The "Modern Family" Trap

"We're a modern Muslim family. These ancient laws don't apply to us."

This thinking has cost Singaporean Muslim families millions in legal fees, broken relationships, and lost wealth. Islamic inheritance law isn't "ancient" – it's eternal, designed by Allah to protect the rights of all family members, not just the nuclear family.

Who Actually Inherits Your Wealth? (The Numbers Will Shock You)

Let's break down what really happens to your assets using real Singapore examples:

Scenario 1: Young Couple with Two Children

Your Estate: $200,000 (savings + investments) + $200,000 CPF (nominated to wife) + $600,000 HDB flat

If HDB is Joint Tenancy:

• CPF: Wife receives $200,000 directly

• HDB: Wife receives full $600,000 automatically

• Other assets subject to Faraidh: $200,000 distributed as:

• Wife gets 1/8th: $25,000

• Each child gets their share: $73,333 each

• Parents/siblings get remainder: $28,334

Total for wife: $825,000 (she keeps the family home!)

If HDB is Tenancy-in-Common:

• CPF: Wife receives $200,000 directly

• HDB: Wife keeps her 50% ($300,000), husband's 50% goes to Faraidh

• Estate subject to Faraidh:

• $500,000 ($300,000 HDB share + $200,000 other assets)

• Wife gets 1/8th of estate: $62,500

•  Total for wife: $562,500 (but may need to buy out relatives' HDB shares)

Scenario 2: Older Couple, No Children, Parents Deceased

Your Estate: $500,000 (property + savings) + $300,000 CPF (nominated to wife)

What happens:

• CPF: Wife receives $300,000 directly

• Estate subject to Faraidh: $500,000 distributed as:

• Wife gets 1/4th: $125,000

• Your siblings inherit: $375,000

Total for wife: $425,000 ($300,000 CPF + $125,000 from estate) But she still must share property ownership with your siblings

Scenario 3: Successful Businessman with Extended Family

Your Estate: $1.2 million (including business assets)

Faraidh distribution:

• Wife: $150,000

• 3 Children: $262,500 each

• Parents: $131,250 each (if alive)

• Siblings: Share the remainder

The business nightmare: Your carefully built company might need to be sold to pay everyone their Faraidh share.

The Hidden Costs of Faraidh Ignorance

1. Family Destruction

When relatives discover they're entitled to portions of your estate, relationships crumble. Siblings sue widows. In-laws claim children's inheritance. The family unit you worked so hard to build gets torn apart in Syariah Court.

2. Financial Devastation

Forced property sales, business liquidations, and asset fragmentation destroy generational wealth. Your children might inherit pieces of a broken financial legacy instead of a thriving family enterprise.

3. Legal Nightmares

Syariah Court cases can drag on for years, consuming inheritance money in legal fees. I've seen estates worth $500,000 shrink to $200,000 after court costs.

4. Emotional Trauma

Widows forced to sell family homes. Children fighting over their deceased parent's business. Elderly parents claiming their "rightful share" from their grandchildren. The emotional scars last generations.

But Here's the Good News: You Can Honor Faraidh AND Protect Your Family

The solution isn't to fight Islamic law – it's to work within it intelligently. Smart Muslim families in Singapore are discovering legal, Shariah-compliant strategies that honor Faraidh while protecting their loved ones' financial security.

The Wasiat Solution

A properly structured Islamic will (Wasiat) allows you to:

• Distribute up to 1/3rd of your estate to non-Faraidh heirs or charitable causes

• Make specific bequests that complement Faraidh distributions

• Provide clear guidance for asset management

• Minimize family conflicts through transparent communication
  

Singapore-Specific Strategies

Working with qualified Islamic inheritance specialists, you can:

• Structure property ownership to optimize Faraidh outcomes

• Use Islamic-compliant trusts and foundations

• Plan business succession that honors religious obligations

• Coordinate CPF nominations strategically (since they bypass Faraidh)

The Questions You Must Ask Yourself Today

1. Do you know whether your HDB flat is held as Joint Tenancy or Tenancy-in-Common?

2. Have you calculated your spouse's actual Faraidh share of your estate?

3. Could your family afford to keep living in your home after paying other heirs their shares?

4. Does your business have a Shariah-compliant succession plan?

5. Are your CPF nominations aligned with Islamic inheritance principles?

If you answered "no" or "I'm not sure" to any of these questions, your family is at risk.

Your Next Step: Get Your Personalized Inheritance Review

Don't let your family become another inheritance horror story. Understanding Faraidh isn't just about religious compliance – it's about protecting the people you love most.

Contact us for a free, no-obligation consultation where our experienced consultant will:

✅ Get to know your unique situation - your family structure, assets, and concerns

✅ Analyze your specific inheritance scenario using accurate Faraidh calculations 

✅ Review your HDB, investments, and other assets and how they're affected 

✅ Identify potential issues before they become family conflicts 

✅ Discuss Shariah-compliant planning options tailored to your needs

The first consultation is completely free with no pressure to proceed. We simply want to understand your situation and provide valuable guidance.

Book Your Free 30-Minutes Consultation

WhatsApp: +65 8952-8511 (Type "FREE CONSULTATION")

Email: [email protected]

No-obligation. No pressure. Just expert guidance for your family's unique situation.

The Choice Is Yours

You can continue living with dangerous assumptions about Islamic inheritance, hoping everything will work out for your family. Or you can take 30 minutes to understand exactly what would happen to your wealth and take proactive steps to protect your loved ones.

Remember Siti's story. She thought she understood inheritance law. She was wrong, and now her family is paying the price.

Don't let this happen to your family.

Your loved ones are depending on you to get this right. The question is: will you act before it's too late, or will you leave them to figure it out after you're gone?

Modern Muslim Finance specializes in Shariah-compliant financial planning for Singapore's Muslim community. Our Islamic inheritance services have helped over 500+ families protect their wealth while honoring their religious obligations.

Ready to protect your family's future? Book your FREE 30-minutes Consultation Call.

Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek independent financial advice customised to their specific financial objectives, situations & needs.

This publication has not been reviewed by the Monetary Authority of Singapore.