Standard Bank launches a bespoke Sharia discretionary trust offering

Standard Bank is excited to announce the introduction of a Sharia-compliant discretionary trust for anyone who wants to structure their assets and estate planning according to Sharia principles or guidelines.  

To be Sharia compliant, there’s a defined framework specific to Sharia estate planning which is, in certain instances, different to conventional estate planning.

“The trust structure may be perceived as an appealing solution to meet the financial and estate planning goals of our Muslim clients in Africa, which was not previously available,” says Ameen Hassen, head of Standard Bank’s Sharia banking. 

“The Muslim faith has specific requirements when it comes to investing and estate planning. Muslims can now grow, preserve and pass on their family wealth while still complying with Sharia law,” says Mohamed Jeewa, head of trusts for Standard Trust Ltd, Standard Bank’s fiduciary services provider. 

“The Sharia discretionary trust offering from Standard Bank provides a way for Muslim families to preserve wealth for future generations and charitable causes in a Sharia-compliant manner.”

The main principles of the trust structure provide for the holding of assets for future beneficiaries and transfer of ownership, making it an effective tool in estate and succession planning. Provision can be made for the inclusion of family-owned businesses, obligations for Zakat payments and the preservation of family values. Zakat is an important part of the Islamic social welfare system, which requires Muslims to give 2.5% of their qualifying assets each year to help those in need. 

“Beyond the basic tax deductions for charitable giving, setting up the Inter Vivos trust could provide financial advantages and the peace of mind in knowing that the money is held in a structure where it can be preserved and distributed to the right beneficiaries,” says Jeewa. 

Globally and in SA, there is often a loss of wealth when transferred from one generation to the next. To mitigate this loss, trust structures provide a way to implement rules for inheritance and consider the needs of those who inherit the money and the needs of those who come after that. This ensures the sustainability of the inheritance over the long term.

Standard Bank’s suite of Sharia-compliant solutions provides a new avenue for clients who need structures to help them achieve their strategic objectives and make optimal arrangements in their asset management and estate planning.

This article was paid for by Standard Bank.