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1

TK 1003: Wealth Planning and

Management

Pre-examination Seminar By Dr Shaikh Hamzah

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What’s On Our Menu

9:00 - 10:30 a.m. -- All About CIFP

Part I Assessment Methods

10:30 - 10:4 a.m. -- !rea"10:4 - 1#:00 noon -- $e%&e' o( )*

1001+,ess&on I

1#:00 -- 1:00 .m. -- !rea"1:00 -- 3:30 .m. -- $e%&e' o( )*

1001 +,ess&on II

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/earn&n Outomes

At the end o( the P2, and&dates

should be able to:

omrehend the assessment methods

(or the CIFP Part I roram

ha%e a lear &dea o( the (&nal eam&nat&on

(ormat and roedures 5O) the

6uest&ons understand the 7o’s 8 7on’ts &n the (&nal

eams

3

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/earn&n Outomes

At the end o( the P2, and&dates

should be able to:

ha%e a better &dea on ho' to ma&m&e

our sores;mar"s (or eah 6uest&on &n

the eams

a%o&d ommon &t(alls and;or m&sta"es &n

the (&nal eam$e%&e's o( the Module

< 8 A

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Assessment Methods

)he Assessment o( the CIFP Part I

Comr&ses o( the (ollo'&ns:

One Pro=et Paer - #0> +7ue on 1?th

@ul #009

F&nal 2am&nat&on - 0> (Aug 4th,

2009)

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Format o( the F&nal 2am

7urat&on: 3 Bours +elud&n 1 m&nutes read&n

t&me

)he F&nal 2am&nat&on Cons&sts o( the

Follo'&ns:)'ent MC<s : #0 o&nts

F&%e short essa 6uest&ons : #0 o&nts

Choose three out (&%e lon 6uest&ons: 0

o&nts

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Assessment Methods

7&str&but&on o( Drades:

0 to 100 : A

0 to ?9 : !

E 0 : F

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7o’s and 7on’ts

Do’s

Read and follow the &nstrut&ons are(ull

+'r&te le&bl read all o( the 6uest&onsbe&n our ans'ers (or eah 6uest&on on a

(resh ae et.

Obser%e our t&me manaement/ead a health l&(esle (e' das be(ore the

eam

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7o’s and 7on’ts

Don’ts

/ea%e an 6uest&ons unans'ered -- th&s

ou '&ll surel et ...

/ea%e the eam&nat&on hall be(ore the

t&me &s u &.e. ne%er &%e-u

Ma"e an Pleas or Con(ess&ons

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Ma&m&&n our Mar"s

Anale the (ram&n o( the 6uest&on and

resonse aror&atel

e..: Cr&t&all anale r&t&al assessment

d&suss sol&&t&n (or o&n&ons understandomare and ontrast anals&s o(

statements urrent &ssues et.

Ans'er 'hat ou are as"ed (or 5O) 'hat

ou "no'

Plan our ans'er

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Ma&m&&n our Mar"s

2ah 6uest&on omes '&th the

d&str&but&on o( mar"s

$ead and o throuh all 6uest&ons and

=ot do'n our (&rst thouhts on eah6uest&on

Ans'er 6uest&ons that '&ll &%e ou the

most mar"s (&rstWr&te &n (ull 8 omlete sentenes

Wr&te le&bl

T i 1

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TK 1003:

Wealthlann!ng "

#anage$ent

Wealth Creat&on 5ature and

,oe WP Asset Alloat&om

In%estment &n $eal

2state

In%estment &n

,eur&t&es

Insurane and

)a"a(ul2state 8 W&ll

Plann&n

$et&rementPlann&n

Topic 1 Topic 2

Topic 3

Topic8

Topic 7

Topic 4

Topic 6

Topic 5

To%!& 9

)aat&on

Ga"at

To%!& 12

Issues

Topic 10

To%!& 11

Wa6(

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Common P&t(alls;M&sta"es

)o 'r&te 'hat ou "no' 5O) 'hat &s be&n

as"ed

)o lea%e 6uest&ons unans'ered

)o 'r&te about the sad stor&es o( our l&(e)o 'r&te une%en ans'ers aord&n to mar"s

d&str&but&on

)o s&t (or the eam '&th &nsu((&&ent stat&onar&es

re6u&red

)o stud unt&l the last m&nutes thus om&n &n

late

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14

Topic One:

Wealth reation !nd Mo"ili#ation

$rom on%entional !nd &#lami'

Per#(e'ti%e#

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1

)e%ie* +,e#tion# !n#*er#

. Di//erentiate the 'on'e(t# o/ *ealth "et*een the &#lami' and'on%entional (er#(e'ti%e# !re there any (oint# o/ #imilaritie#Ho* do yo, re'on'ile the t*o 'on'e(t# in reality 2 &n &#lam

. !ll *ealth "elong# to !llah

. Man i# a tr,#tee and need# to ,#e it in a''ordan'e *ith &#lami' tea'hing#

. Wealth i# in a",ndan'e

. %eryone ha# "een allo'ated *hat i# d,e to him &t i# ,( to him to *ork on it

2 $rom 'on%entional (er#(e'ti%e. Wealth i# generated "y indi%id,al and hen'e he i# the right/,l o*ner. Wealth i# #'ar'e

. &t i# man *ho generate# *ealth and not a((ortioned to him

. He ha# 'om(lete /reedom to ,#e it

2 //ort# are needed to generate *ealth ,nder "oth (er#(e'ti%e# 2 To re'on'ile: Man4# e//ort 'an only "e #,''e##/,l *ith the (ermi##ion o/

!llah

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1


. De#'ri"e the nat,re o/ good# that &#lam di#ting,i#he#

/or (,"li' 'on#,m(tion Why do yo, think &#lam

di#ting,i#he# them /rom tho#e that 'o,ld right/,lly "e

(ri%ately o*ned 2 T*o kind# o/ a##et# /or (,"li' 'on#,m(tion:

. $ir#t i# (,"li' ,tilitie# #,'h a# large #tream#5 "ridge#5 land /or

'ommon ,#e and ri%er "ank#

.Se'ond5 nat,ral re#o,r'e#: *ater5 her"age /ire and #alt

2 Ho*e%er5 6,ri#t# are o/ the o(inion that tho#e good# *ith

the #ame attri",te# #ho,ld "e in'l,ded a# *ell

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1?


. The rationale i# that tho#e good# *ho#e

(rod,'tion are too 'o#tly and ",rden#ome to

indi%id,al# yet are %ery m,'h needed "y the

(,"li' at large #ho,ld "elong to (,"li'

7ther*i#e the good 'an "e (ri%ately o*ned

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1


. x(lain *hy *ealth i# 'on#idered a# a t*o-edged#*ord Ho* 'o,ld one (rote't one#el/ /rom going

"eyond the "o,nd# (ermitted "y the Shariah and*hy

2 &t i# ,#e/,l *hen one ,#e# it in a''ordan'e *ith Shariah &thel(# man to (er/orm hi# o"ligation# and he #ho,ld get the

"le##ing# o/ !llah 2 7n the other hand he *ill #,//er in the herea/ter e#(e'ially

*hen a#ked to a''o,nt ho* he ha# attained and #(ent it

2 &/ he ha# ,#ed them /or thing# /or"idden it *ill "e *or#t /orhim

2 Some exam(le#

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19


. &# *ealth (lanning (ermi##i"le in &#lam Ho* m,'hdi//erent *ill it "e done /rom the 'on%entionala((roa'h 2 De/ine *ealth (lanning

2 What are the 'om(onent# o/ *ealth (lanning in &#lam and in'on%entional (ra'ti'e

2 Why i# it (ermi##i"le in &#lam Wealth (lanning i# (ermi##i"le in&#lam in order to en#,re that man i# a"le to li%e 'om/orta"ly inhi# old age &#lam doe# not *ant M,#lim# to #,//er in thi# *orld

2 &t *ill "e %ery di//erent "e'a,#e. a M,#lim need# to 'lean#e 8(ay zakat5 %ol,ntary #ada9ah and #(ending onother# hi# (ro(erty

. He m,#t not ind,lge in ,n&#lami' a'ti%itie# *hile generating5 a'',m,lating5 (re#er%ing5 (rote'ting and #(ending hi# *ealth

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#0


. The three (rohi"iti%e element# that *o,ld

make a 'ommer'ial tran#a'tion non-#hariah

'om(liant are riba 8,#,ry5 maisir 8gam"ling

and gharar 8,n'ertainty; am"ig,ity Why are

they 'on#idered (rohi"iti%e to Shariah

2 They o"#tr,'t 6,#ti'e and e9,ity

2 The (layer# are not in the #ame (laying /ield#

2 &n/ormation i# in'om(lete 8gharar

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#1


. <They ask you what they should spend (in charity).Say: Whatever you spend that is good, is for parentsand relatives and orphans and those in want and forwayfarers. nd whatever ye do that is good, !(llah)knows it well = >+,ran: ha(ter ? 8 l!"a#arah: @er#e?1A

S(ending one4# *ealth on other# i# #trongly

en'o,raged "y &#lam a# i# mentioned in the a"o%e%er#e o/ the Holy +,ran Brie/ly ex(lain theim(ortan'e o/ #(ending in the 'ontext o/ *ealth

(,ri/i'ation in &#lami' *ealth (lanning

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##


. P,ri/i'ation i# o/ t*o kind#5 the (hy#i'al and the

#(irit,al

. Wealth (,ri/i'ation i# mani/e#ted "y #haring *ith

other# *hat *e ha%e and "etter #till *hat *e lo%emo#t 8(hy#i'al5 (,ri/ying /rom non-Shariah 'om(liant

in'ome that may "e earned ,nkno*ingly or *ithin

tolera"le limit#

. &t i# in the #(irit o/ #ear'hing /or the "le##ing# o/

!llah that *e gi%e a*ay *hat *e ha%e 8#(irit,al

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#3


. The main di#tin'tion "et*een the 'on%entionaland &#lami' *ealth (lanning i# the Shariahre9,irement o/ *ealth (,ri/i'ation Brie/ly

ex(lain ea'h o/ the di//erent &#lami' *ealth (,ri/i'ation (ro'e##e#. 2 S(ending 8in/a9

2 @ol,ntary 'harity 8#ada9ah

2 om(,l#ory *ealth tax 8Cakat

2 ndo*ment 8Wa9/

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#4

Topic Two:

at,re and #'o(e o/ *ealth (lanning

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#


. De#'ri"e the di//eren'e# and #imilaritie# "et*een

*ealth (lanning and /inan'ial (lanning 2 Similaritie#:

. Both aim at enhan'ing the %al,e o/ *ealth or re#o,r'e#

. Both ,#e #imilar method# to enhan'e or (re#er%e %al,e

. Both ha%e #(e'i/i' o"6e'ti%e# *hen /orm,lating (lan#

2 Di//eren'e#:

. $P i# /or #(e'i/i' (ro6e't# or (eriod# WP i# /or the end o/ the (eriod

. $P i# /or relati%ely #horter term ",t WP i# /or long term

. $P i# meant to ha%e eno,gh /or all (eriod# ",t WP i# /or /,t,re

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#


. x(lain the di//eren'e# and #imilaritie#

"et*een the o"6e'ti%e# o/ 'on%entional and

&#lami' *ealth (lanning 2 Similaritie#:

. Both 'ontain /,n'tion# o/ generation5 a'',m,lation5

(rote'tion or (re#er%ation5 enhan'ement and di#tri",tion

. Both aim to ha%e a good li/e d,ring retirement

2 Di//eren'e#:

. &#lami': need to do 'lean#ing 8zakat5 et'

. &#lami': 'annot 'ontra%ene Shariah

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#?


. De#'ri"e the #igni/i'an'e o/ the di//erent

#tage# in *ealth (lanning (ro'e##

2 &n%entory taking

2 !naly#i# %al,ation

2 Plan De#igning

2 &m(lementation

2 Monitoring and )e%ie*ing

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#


. x(lain the trade-o// 'on'e(t and it# rele%an'ein the (re(aration o/ a 'om(rehen#i%e *ealthmanagement (lan

2 Trade-o// "et*een ri#k and ret,rn. May not get the rate o/ ret,rn ex(e'ted

. lient may ha%e di//erent ri#k a((etite

. )i#k-/ree 'on'e(t mean# ret,rn i# %ery lo*

. on#i#ten'y o/ (er/orman'e

. !##et allo'ation 'an im(ro%e or *or#en ret,rn

. Trade-o// "et*een #er%i'e and ret,rn

. Trade-o// "et*een thi# *orld and the next

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#9


. Ho* di//erent i# the 'on%entional trade-o//

'on'e(t /rom the &#lami' 'on'e(t

2 Trade-o// "et*een thi# *orld and the next

2 ! M,#lim "elie%e# in /ate and de#tiny 89adha4 and

9adar

2 There i# e//ort 8ikhtiar and lea%ing it to !llah

8Ta*akk,l

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30


. x(lain the #imilaritie# and di//eren'e#

"et*een the 'on%entional and &#lami' <Trade-

o// on'e(t= in relation to *ealth (lanning

2 Similar an#*er to the (re%io,# 9,e#tion

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31


. <To llah belongs all that is in the heavens and onearth: To $im do all #uestions go back (fordecision)= >+,ran: ha(ter 3 8 li %&mran: @er#e 10E

Ba#ed on the a"o%e %er#e /rom the Holy +,ran: 2 'an yo, ex(lain the 'on'e(t o/ *ealth o*ner#hi( in &#lam;

2 *hat im(li'ation# do yo, think the #e'ond (art o/ the %er#eha# on the generation and ,tilization o/ *ealth in &#lam

2 *hat #ho,ld the o"6e'ti%e# o/ *ealth (lanning in &#lam "eand relate it# im(ortan'e e#(e'ially in the modern *orld

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3#


2 To !llah "elong# all 'reation# and hen'e all

re#o,r'e# and *ealth and man i# 6,#t the tr,#tee

*ho ha# the right to ,#e in a''ordan'e *ith Hi#

Will 2 We are a''o,nta"le /or all o,r a'tion#

2 To generate and a'',m,late *ealth in order to "e

'lo#er to Him in *hate%er *ay g #(end in Hi#

*ay5 #haring *ith other#5 et'

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33

Topic Three:

Wealth 8a##et allo'ation (ro'e##

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34


. 7ne o/ the mo#t im(ortant a#(e't# o/ #,''e##/,l

*ealth (lanning i# the (ro'e## o/ *ealth allo'ation

De#'ri"e the main 'om(onent# o/ *ealth allo'ation

(ro'e## and ex(lain the #igni/i'an'e o/ ea'h to the#,''e## o/ *ealth (lanning

2 #ta"li#hment o/ o"6e'ti%e#

2 &denti/ying (otential o((ort,nitie#

2 Determining ri#k# and 'on#traint#

2 Potential in%e#tment 'hannel#

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3


2 Brie/ 'lient de#'ri(tion

2 P,r(o#e o/ e#ta"li#hing (oli'ie# and g,ideline# regarding

o"6e'ti%e#5 goal#5 re#tri'tion# and re#(on#i"ilitie#

2 &denti/i'ation o/ d,tie#

2 Statement o/ in%e#tment goal#5 o"6e'ti%e# and 'on#traint#

2 S'hed,le o/ re%ie* o/ in%e#tment (er/orman'e5 Shariah

'om(lian'e5 et'

2 !##et allo'ation 'on#ideration# 2 )e"alan'ing g,ideline# /or (ort/olio ad6,#tment# "a#ed on

/eed"a'k

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3?


. &/ yo, are a((ointed to "e a 'on#,ltant /or a high net *orthM,#lim indi%id,al to dra/t and exe',te a (lan /or hi# *ealth5*hat *o,ld "e the /o,r im(ortant #te(# that yo, *o,ld take toen#,re that hi# /inan'ial goal# are /,l/illed

2 Planning 2 &denti/ying in%e#tor4# o"6e'ti%e# and 'on#traint#

2 reating in%e#tment (oli'y #tatement

2 $orming 'a(ital market ex(e'tation#

2 reating #trategi' a##et allo'ation

2 xe',tion 2 $eed"a'k

2 Per/orman'e e%al,ation

2 Monitoring and re"alan'ing

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3


S,((o#e yo,r 'lient ha# GSD?005000 and he *ant# to get aret,rn o/ 10 (er ann,m /rom the in%e#tment# that yo,

(ro(o#e

8a What *o,ld hi# total a##et "e at the end o/ three year#IHint: G#e the /orm,la ! J P81 rn *here ! J total a##et atthe end o/ n year#5 P J Prin'i(al amo,nt in%e#ted5 r J ann,alrate o/ ret,rn and n J n,m"er o/ year# in%e#ted

8" &/ yo, allo'ate A0 o/ the in%e#tment in /ixed in'omein#tr,ment# *hi'h gi%e a ret,rn o/ A (er ann,m and the

re#t in e9,itie# *ith an ex(e'ted rate ret,rn o/ 11 (erann,m5 *o,ld #,'h allo'ation meet *ith the ex(e'ted rateo/ ret,rn o/ yo,r 'lient in three year#4 time

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39


8a P J total amo,nt in%e#ted J L?005000

r J rate o/ ret,rn (er ann,m J 10

n J n,m"er o/ year# o/ in%e#tment J 3

! J total a##et at end o/ n J 3 year#

G#ing /orm,la ! J P81 rn

We ha%e ! J ?005000 81 0103

! J L?5?00

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40


8" &/ A0 o/ (rin'i(al amo,nt i# in%e#ted in

/ixed in'ome in#tr,ment# that gi%e A

ret,rn and A0 in e9,itie# that gi%e 11

ret,rn5 then! J 1005000810A3 1005000810113

J L11A5N?A0 L135N310

J L?A?5A?A0

8' Thi# in%e#tment doe# not meet *ith the o"6e'ti%e

o/ the in%e#tor

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41

Topic 4:

&n%e#tment &n )eal #tate#

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4#


. )eal e#tate i# one in%e#tment that #eem# toa((re'iate in %al,e more than de(re'iatex(lain

2 )eal e#tate re/er# to land and anything a//ixed to it 2 &t ha# #(e'ial /eat,re#:

. D,ra"leO Per(et,al

. 7%er time the (ro(erty *ill "e #,rro,nded "y

de%elo(ment. More /a'ilitie# "e'ome a%aila"le

. S'ar'ity and immo"ility

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43


. What are the 'ommon /a'tor# that determine the

%al,e o/ real e#tate i%e rea#on# *hy

2 High demand

2 Short #,((ly 2 De%elo(ment #,rro,nding it

2 Sha(e and #ize

2 !''e##i"ility

2 o en',m"ran'e#

2 S'eni' %ie*

2 Fo'ation

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44


. Why doe# lo'ality o/ a real e#tate (lay #,'h an

im(ortant role in determining the %al,e o/ a

real e#tate

2 &t i# immo%a"le and hen'e de(end# on *here it i#

lo'ated5 near the to*n5 'o,ntry #ide5

2 !''e##i"ility

2 !''e## to /a'ilitie# 8market5 #ho(#5 #'hool5ho#(ital

2 Fand#'a(e

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4


. De#'ri"e and ex(lain the %ario,# method# o/ %al,ation o/ reale#tate 2 om(ari#on method

. om(are like /or like and ad6,#t the di//eren'e#

2 &n%e#tment method

. om(aring the ret,rn# to in%e#tment on the (ro(erty

2 o#t method. ormally a((lied to (,"li' (ro(ertie# #,'h a# #'hool#5 ho#(ital#5 et' om(ari#on i#

made "et*een the 'o#t o/ ",ilding and the re(la'ement 'o#t gi%ing allo*an'e tode(re'iation

2 Pro/it Method

. &t i# "a#ed on the kind o/ (ro/it that 'o,ld "e earned /rom the (ro(erty

2 The )e#id,al method. &t i# ,#ed to e%al,ate the de%elo(ment #ite# and (ro(ertie# #,ita"le /or

rede%elo(ment &t 'om(are# %al,e o/ (ro'eed# 8a/ter de%elo(ment *ith de%elo(ment'o#t

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4


. x(lain the e'onomi'# o/ real e#tate 'y'le#

2 &n'rea#e in demand d,e to (o(,lation gro*th5

ind,#trial de%elo(ment5 (,"li' *ork# and

go%ernment #er%i'e# 2 Time i# re9,ired to #,((ly and 'on#tr,'t (ro(ertie#

*hi'h gi%e# ri#e to rent# and land %al,e

2 Peak 2 high %ol,me o/ real e#tate tran#/er# By thattime5 SQD )ental# /ail to read6,#t Thi# 'a,#e# the

"reak o/ ",ilding "oom

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4?


. Mr !li "o,ght a ho,#e /or in%e#tment He (aid a totalo/ )M?005000 /or it *hi'h in'l,de# the legal andagen'y /ee# and all other mi#'ellaneo,# ex(en#e# Hetook a E0 /inan'ing "a#ed on "ay' "ithaman il

8BB! /or ?0 year# at R0 (er ann,m He managedto get a tenant *ho (ay# a rental o/ )M15A0000 (ermonth

8a Ho* m,'h *ill Mr !li (ay /or the ho,#e in ?0year#

8" What i# the rate o/ ret,rn on hi# in%e#tment

8' &# thi# a good in%e#tment Why

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4


8a E0 /inan'ing at R (er ann,m /or ?0 year#*ill yield a total /inan'ing 'o#t o/ 8E0O100 x?005000 x 8RO100 x ?0 J L1RR5000

There/ore the total amo,nt (aid "y !li in ?0year# i# L?005000 L1RR5000 J L3RR5000

8" The rate o/ ret,rn on hi# in%e#tment i# L15A00 x1? L?005000 x 100 J E (a

8' Sin'e the rental i# L15A00 (er month and themonthly in#talment i# L3RR5000 ?R0 J L1R33 (er month5 it i# not a "ad in%e#tment at all

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49

To(i' A:

&n%e#tment &nSe',ritie#

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0


. Brie/ly ex(lain the /ollo*ing terminologie# a#

,#ed in the #e',ritie# market:

2 !,thori#ed a(ital

2 Market @al,e o/ $irm

2 Bon,# &##,e

2 arning# (er Share or PS

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1


. om(are and 'ontra#t the de"t and e9,ity

in#tr,ment#

2 De"t and e9,ity in#tr,ment# are di//erentiated "y

'laim and time

2 De"t or "orro*ing i# /ixed in time and /ixed in

'laim ie they are terminal and ha%e /ixed

mat,rity (eriod They m,#t "e (aid in /,ll or*ithin the #ti(,lated time 7n'e it i# (aid5 'reditor#

ha%e no link# *ith them

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#


2 laim on de"t i# /ixed 8(rin'i(al intere#t

2 9,ity (ro%ide# o*ner#hi(5 i# re#id,al in 'laim and

(er(et,al in time 9,ity o*ner# o*n the /irm net o/ the

/irm4# o"ligation# The net re#id,al (ortion "elong# to

e9,ity holder# !ll %al,e# 'reated "eyond the /irm4#o"ligation# "elong to the e9,ity holder#

2 9,ity "eing o*ner#hi( i# not terminal and doe# not ha%e

/ixed mat,rity Hen'e e9,ity in#tr,ment# are (er(et,itie#

2 Mo#t 'ommon e9,ity in#tr,ment# i# the 'ommon #to'k

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3


. What make# #e',ritie# #o attra'ti%e that #hareholder#are *illing to (art *ith their o*ner#hi( *hen they go

(,"li' 2 The 'a(ital gain i# normally %ery high *hen the 'om(any

goe# (,"li' 8&P7 (ri'e i# m,'h higher 2 &t (ro%ide# in#tant 'a#h 2 &t i# too long to *ait /or di%idend# to re'o%er the 'a(ital

gain# 2 Shareholder# 'an ea#ily re(,r'ha#e the #e',ritie# i/ they

*ant to 2 <&t i# "etter to ha%e 'a#h no* than to kee( (a(er#= *hi'h

may "ring in lo##e# too

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4


. &denti/y ri#k element# inherent in the in%e#tment in

#e',ritie#

2 B,#ine## ri#k 2 re/er# to ,n'ertainty o/ in'ome /lo*#

'a,#ed "y /irm4# ",#ine## (er/orman'e 2 $inan'ial ri#k 2 re/er# to ,n'ertainty originating /rom the

*ay the /inan'ing i# done 8e9,ity- de"t 'om"ination#; et'

2 Fi9,idity ri#k 2 re/er# to ,n 'ertainty introd,'ed "y the

#e'ondary market /or in%e#tment 2 ,rren'y ri#k 2 ex'hange rate ri#k# d,e to the /l,'t,ation#

in ex'hange rate#

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2 o,ntry )i#k 2 al#o 'alled (oliti'al ri#k ari#ing o,t

o/ #,dden 'hange in (oli'ie# or go%ernment

2 Bond ri#k# and rating 2 'an "e 'ategori#ed a#

/ollo*#:. De/a,lt ri#k

. &ntere#t rate ri#k

. Fi9,idity ri#k

. &n/lation ri#k

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. x(lain the #to'k #'reening (ro'e## ado(ted "y the

Shariah !d%i#ory o,n'il o/ the Se',ritie#

ommi##ion

2 Ste( 1: &denti/y the ,ni%er#e "a#ed on 'ore ",#ine## Sha# al#o li#ted a'ti%itie# that are non-Shariah 'om(liant

2 Ste( ?: Take# into a''o,nt the le%el o/ 'ontri",tion o/

intere#t in'ome /rom 'on%entional /ixed de(o#it# or other

intere#t "earing /inan'ial in#tr,ment# Di%idend# /rom

in%e#tment in Shariah non-'om(liant #e',ritie# are al#o

'on#idered

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?


2 $or 'om(anie# *ith a'ti%itie# 'om(ri#ing "oth

(ermi##i"le and non-(ermi##i"le element# the S!

'on#ider# t*o additional 'riteria:

. P,"li' (er'e(tion o/ the 'om(any m,#t "e good

. The 'ore a'ti%itie# o/ the 'om(any are im(ortant and

'on#idered maslahah 8<"ene/it= in general to the

M,#lim ummah and the non-(ermi##i"le element i# %ery

#mall and in%ol%e# matter# #,'h a# umum balwah

8'ommon (light and di//i',lt to a%oid %uruf ( ',#tom

and the right# o/ the non-M,#lim 'omm,nity *hi'h are

a''e(ted "y &#lam

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2 To determine the tolera"le le%el o/ mixed'ontri",tion# /rom (ermi##i"le and non-

(ermi##i"le a'ti%itie# to*ard# t,rno%er and (ro/it "e/ore tax o/ a 'om(any the S! ha# e#ta"li#hed

the /ollo*ing "en'hmark#. a The A "en'hmark 2 i# ,#ed /or a'ti%itie# that are

'learly (rohi"ited #,'h a# ri"a; gam"ling; li9,or and (ork

. " The 10 "en'hmark 2 i# ,#ed /or a'ti%itie#'on#idered a# umum balwah g intere#t /rom /ixedde(o#it

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9


2 ' The ?0 "en'hmark 2 i# ,#ed to a##e## the le%el o/

'ontri",tion o/ mixed rental (ayment /rom #hariah non-

'om(liant a'ti%itie# #,'h a# rental (ayment# /rom (remi#e#

,#ed in gam"ling; #ale o/ li9,or et'

2 d The ?A "en'hmark 2 i# ,#ed to a##e## the le%el o/'ontri",tion /rom a'ti%itie# that are generally (ermi##i"le

and ha%e an element o/ ma#lahah to the (,"li' ",t there are

other element# that may a//e't the Shariah #tat,# o/ the#e

a'ti%itie# #,'h a# hotel and re#ort o(eration#; #hare trading;#to'k"roking and other# "e'a,#e the#e a'ti%itie# may

in%ol%e non-(ermi##i"le a'ti%itie#

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0


2 When there i# a 'hange o/ #tat,# /rom Shariah-

'om(liant to Shariah non-'om(liant

. Sell the #e',ritie# immediately i/ it i# (ro/ita"le to do #o

and take the (ro/it#

. Wait ,ntil the (ri'e o/ #e',rity e9,al# 'o#t i/ at the time

o/ 'hange o/ #tat,# the market (ri'e i# le## than (,r'ha#e

(ri'e

. While *aiting i/ there i# di%idend re'ei%ed the 'om(any

may take it

. &/ the 'om(any delay# #elling any (ro/it made m,#t "e

'lean#ed

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1


. x(lain ho* an iarah sukuk i# #tr,'t,red

2 )e/er to note#

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#


. What are the main di//eren'e# in the nat,re o/real e#tate and #e',ritie#

)eal e#tate: (hy#i'al (ro(ertie#; not li9,id; no

#tr,'t,red market; in/ormation not readilya%aila"le; not ea#ily tran#/era"le; re9,ire# third (arty or real e#tate agent#; immo"ile; h,ge in#ize; %al,e de(end# on #tate o/ de%elo(ment inthe #,rro,nding#; lo'ation; %ie*; #ize and#ha(e; long term; a((re'iating in %al,e

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3


. Se',ritie#: t*o ty(e# o/ #e',ritie#- e9,ity and

de"t; #tr,'t,red market#; 'om(lete in/ormation

a%aila"le; (ri'e# /l,'t,ate *ildly; (ri'e i#

kno*n; lot# o/ (layer#; ea#y tran#/er; ea#yentry and exit; #mall in%e#tment; %olatile; ri#ky

",t high ret,rn#; #hort termH

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4


. What are the di//eren'e# "et*een in%e#ting in

real e#tate and in%e#ting in #to'k market

2 )e/er to (re%io,# an#*er

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. &n%e#ting in de"t in#tr,ment# i# di//erent /rom

in%e#ting in e9,ity in#tr,ment# What are the

main di//eren'e# in the nat,re o/ de"t and

e9,ity in#tr,ment# 2 )e/er to (re%io,# an#*er

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. x(lain the di//eren'e "et*een e9,ity and

de"t in#tr,ment#

. )e/er to (re%io,# an#*er

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?


. What are the /eat,re# o/ sukuk that are glo"ally

a''e(ta"le

2 Sho,ld "e a##et "a'ked

2 Sho,ld not "e "a#ed on de"t

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. Do yo, think harmonization o/ glo"al Shariah

o(inion# *o,ld enhan'e /,rther de%elo(ment

o/ &#lami' /inan'e ind,#try

2 7(en 9,e#tion

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9


. When the 'ore ",#ine## o/ a 'om(any i# Shariah

'om(liant5 it may #till ha%e in'ome /rom non-Shariah

'om(liant #o,r'e# $or #,'h 'om(anie#5 the Shariah

!d%i#ory o,n'il o/ the Se',ritie# ommi##ion5Malay#ia ha# i##,ed /o,r "en'hmark# that #et the

maxim,m le%el o/ non-Shariah in'ome that 'o,ld "e

tolerated /or #,'h 'om(anie# to "e 'on#idered a#

Shariah-'om(liant #to'k Brie/ly ex(lain ea'h o/ the/o,r "en'hmark#


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?0


What are the main /eat,re# o/ in%e#tment# in 2 )eal e#tate; and

2 Se',ritie#

Di#',## their di//eren'e#)eal e#tate: (hy#i'al (ro(ertie#; not li9,id; no#tr,'t,red market; in/ormation not readily a%aila"le;not ea#ily tran#/era"le; re9,ire# third (arty or real

e#tate agent#; immo"ile; h,ge in #ize; %al,e de(end#on #tate o/ de%elo(ment in the #,rro,nding#; lo'ation;%ie*; #ize and #ha(e; long term; a((re'iating in %al,e

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?1


. Se',ritie#: t*o ty(e# o/ #e',ritie#- e9,ity and

de"t; #tr,'t,red market#; 'om(lete in/ormation

a%aila"le; (ri'e# /l,'t,ate *ildly; (ri'e i#

kno*n; lot# o/ (layer#; ea#y tran#/er; ea#yentry and exit; #mall in%e#tment; %olatile; ri#ky

",t high ret,rn#; #hort termH

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?#

Topic 6:

&n#,ran'e !nd Taka/,l S'heme#

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?3


. De#'ri"e the role# o/ in#,ran'e and taka/,l in *ealth

(lanning

2 &n#,ran'e and taka/,l are %ery im(ortant /or *ealth

(re#er%ation and di#tri",tion a# they 'reate an in#tant e#tate

*ith a #mall (remi,m

2 &t hel(# in 'a#e o/ #,dden death; tem(orary or (ermanent

di#a"ility in (ro%iding

. &n'ome re(la'ement need#

. $,neral ex(en#e need#

. De"t re(ayment need#

. d,'ation need#

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?4


. x(lain the di//eren'e# "et*een the ,nderlying

(rin'i(le# o/ in#,ran'e and taka/,l 'ontra't#

2 &n#,ran'e 'ontra't "et*een the 'om(any and the

'lient i# one o/ indemnity 2 Taka/,l 'ontra't i# one among the (arti'i(ant# *ho

are *illing to donate (art o/ their 'ontri",tion# to

'om(en#ate lo##e# in',rred "y any (arti'i(ant

Thi# donation i# 'alled tabarru'. The 'om(any i#

only the manager or o(erator

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?


. Brie/ly 'om(are the di//eren'e# in the taka/,l model# 2 udharabah model *here the 'om(any i# the o(erator

8mudharrib and the gro,( o/ (arti'i(ant# i# the (ro%ider o/'a(ital 8rabbul mal The 'om(any #hare# the ,nder*riting#,r(l,# and the in%e#tment (ro/it# *ith the (arti'i(ant#

2 Wakalah model 2 'om(any take# an ,(/ront /ee /ormanaging the taka/,l ",#ine## 8,nder*riting andin%e#tment (l,# the o(eration# The 'om(any may #harethe (ro/it# /rom in%e#tment i/ it only take# /ee /or,nder*riting and o(eration#

2 Wakalah!wa#f model 2 #imilar to wakalah model ",t thedonation (ortion i# ,#ed to 'reate wa#f /,nd *hi'h i# ,#edto (ay o// lo##e# in',rred "y (arti'i(ant#

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?


. x(lain the main di//eren'e# in the li/ein#,ran'e 'ontra't# 2 Term li/e 2

. $or a #(e'i/i' (eriod

. &t i# lea#t ex(en#i%e

. an terminate and rene*ed at a higher (remi,m

. o,ld "e ,ntil age A or NA or 100 *ith no rene*al

g,arantee#. To remain in#,red the in#,rer i##,e# rene*a"le term

in#,ran'e *hi'h *ill "e 'on%erted to (ermanent'o%erage

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??


2 Whole li/e 2 i# /or in#,red4# *hole li/e time

. @ery long (eriod #,'h a# or E0 or 100 year#

. &# a /orm o/ (ermanent in#,ran'e

. &t ha# element o/ #a%ing# 'alled 'a#h %al,e

. Straight li/e 2 (remi,m (aya"le a# long a# in#,red li%e#

. Fimited-(ay li/e (oli'y 2 (remi,m (aya"le /or #(e'i/i'

(eriod #ay ?0 year# or ,ntil A

. !/ter that no (ayment needed ",t in#,red i# 'o%ered,ntil death

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?


. ndo*ment i# another /orm o/ (ermanent

in#,ran'e #imilar to *hole li/e

2 The only di//eren'e i# that the 'ontra't# (ro%ide

death "ene/it# /or a #(e'i/ied (eriod o/ time 2 &t ha# 'a#h %al,e and in#,red i# (aid /a'e amo,nt at

the end o/ the (eriod i/ in#,red i# #till ali%e

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?9


. &n%e#tment-li/e in#,ran'e 'ontra't# i# di//erent/rom any other li/e in#,ran'e 'ontra't# 2 The (remi,m i# di%ided into t*o a''o,nt# 2

in%e#tment a''o,nt and ri#k a''o,nt 2 &n%e#tment a''o,nt "elong# to in#,red

2 )i#k a''o,nt "elong# to 'om(any *ho *ill 'ond,'to(eration# and (ay o// 'om(en#ation#

2 !t death the in#,red (arty *ill get the in%e#tmenta''o,nt (l,# the /a'e %al,e o/ the ri#k a''o,nt

2 The #ame a# in%e#tment link in#,ran'e

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0


. Fi#t the main di//eren'e# "et*een the'on%entional in#,ran'e o(eration# and tho#e o/taka/,l 8&#lami' in#,ran'e

2 &n#,ran'e i# a 'ontra't o/ indemni/ying the (oli'yholder# /rom the ri#k# related to the (oli'y Taka/,li# the m,t,al #haring o/ ri#k# and 'om(en#atingtho#e that /a'e any hazard#

2 &n#,ran'e in%ol%e# am"ig,ity 8al!gharar 5gam"ling 8al!maisir and intere#t "earingin%e#tment# 8riba Taka/,l a%oid# all three

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1


. x(lain the 'on'e(t o/ tabarru' a# i# ,#ed intaka/,l 2 Tabarru' 'ome# /rom the !ra"i' root *ord <al!birr =

*hi'h mean# <righteo,#ne##= Tabarru' i# a #in'ereor %ol,ntary donation "y taka/,l (arti'i(ant# /rom (art o/ the 'ontri",tion /or a (oli'y The (arti'i(ant# ha%e no right to the amo,nt donatedand *ill not re'ei%e any "ene/it o,t o/ it "e'a,#e heha# <gi%en ,( hi# right on it= Thi# i# the (art that i#managed "y the taka/,l o(erator to (ay o,t 'laim#

i i

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#


. What are the mean# a%aila"le today that 'anhel( ,# (rote't o,r *ealth

2 &n#,ran'e and taka/,l

2 There are a%aila"le taka/,l (rod,'t# that aremeant to 'om(en#ate lo##e# on (ro(erty d,e to/ire5 the/t5 and *here a (ie'e o/ (ro(erty i# "eing

(,r'ha#ed ,nder #ome /inan'ing arrangement5

the (,r'ha#er 'an ha%e a (oli'y that *o,ld (ayo,t the total /inan'ing in 'a#e o/ death orin'a(a'itation o/ the (,r'ha#er

i + i !

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3


. There are three main model# o/ taka/,l in o(erationtoday De#'ri"e the "a#i' +,rani' (rin'i(le that

,nderlie# all the di//erent taka/,l model#

2 The "a#i' +,rani' (rin'i(le o/ <Ta'awun= or hel(ing oneanother in righteo,#ne## and (iety i# the ,nderlying

(rin'i(le that i# "eing em(loyed in /orm,lating taka/,l

model# >Surah l!aidah 8A: %er#e 3 *hi'h mean#5

<Hel( ye one another in righteo,#ne## and (iety5 ",t hel(

ye not one another in #in and ran'o,r=

) i + i !

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4


. x(lain in #ome detail the o(eration# o/ one o/

the model#

2 )e/er to the (re%io,# an#*er

7/23/2019 u103


Topic 7:

#tate Planning

) i + i !

7/23/2019 u103



What i# the (,r(o#e o/ e#tate (lanning and *hy i# itim(ortant to ha%e a (lan #tate here mean# all the mo%a"le and immo%a"le

(ro(ertie# o/ an indi%id,al

#tate (lanning there/ore 'on'ern# the %ario,# #te(# to "etaken in order to a'',m,late5 'on#er%e5 enhan'e anddi#tri",te the e#tate o/ the indi%id,al &n &#lam5 it al#oin'l,de# 'lean#ing or (,ri/ying the e#tate *hi'h in%ol%e#%ol,ntary and 'om(,l#ory di#tri",tion and a/ter death5the im(lementation o/ the la* o/ inheritan'e

&t i# %ery im(ortant to ha%e a (lan #o that the *i#he# o/the indi%id,al 'an "e /,l/illed and hi# de(endent# are*ell taken 'are o/

) i + i !

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?


What are the mo#t im(ortant 'om(onent# o/ a WillBrie/ly ex(lain the (,r(o#e o/ ea'h 'om(onent

! *ill i# a de'laration o/ the intention# o/ a te#tator 8o*ner

o/ an e#tate *ith re#(e't to hi# (ro(erty *hi'h he de#ire#

to "e di#tri",ted ,(on hi# death

&t #ho,ld in'l,deThe li#t o/ hi# (ro(ertie# 8 to kno* *hat he ha# a# (ro(erty

The li#t o/ "ene/i'iarie# and the (ro(ortion# o/ the (ro(erty he

allo'ated 8to *hom #ho,ld "e gi%enThe admini#trator or exe',tor o/ the *ill 8to exe',te hi# *ill

) i + ti !

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When doe# a Will take e//e't and 'an one'hange hi# Will &/ #o5 ho* many time#

! *ill take# e//e't only a/ter the death o/ the

te#tator 7ne 'an 'hange hi# *ill any n,m"er o/ time# ,ntil

hi# death

) i + ti !

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9


. What i# the <Po*er o/ !ttorney= When doe#it "e'ome ne'e##ary Who 'an get it 2 &t i# an in#tr,ment 'reated "y the (er#on granting

the (o*er o/ attorney 8Donor in /a%o,r o/ a (er#on or (er#on# named "y the Donor in the (o*er o/ attorney in#tr,ment 8Donee

2 &t "e'ome# ne'e##ary *hen the Donor may not "e

a%aila"le to exe',te hi# (lan or tran#a'tion 2 The (er#on named "y the Donor in the in#tr,ment

o/ the Po*er o/ !ttorney

) i + ti !

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90


. Di//erentiate "et*een a 'ontentio,# and non-'ontentio,# Pro"ate 2 on-'ontentio,# Pro"ate i# *hen the de'ea#ed ha#

le/t a Will and named an exe',tor5 or i/ all the "ene/i'iarie# ha%e 'on#ented to a (arti',larexe',tor5 e%en i/ hi# name i# not mentioned in theWill

2 ontentio,# Pro"ate i# *hen the exe',tor i# notnamed in the Will or *hen the "ene/i'iarie# do notgi%e 'on#ent to the exe',tor

) i + ti !

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91


. Di//erentiate "et*een a Tr,#t and Will

2 Will i# a de'laration o/ the intention# o/ an e#tate

o*ner on ho* hi# e#tate i# to "e exe',ted *hen he

die# 2 Tr,#t i# the right gi%en to a (er#on or (er#on# to

manage or handle an intere#t 8'o,ld "e a (ro(erty

or anything o/ %al,e on "ehal/ o/ another (er#on

) i + ti !

7/23/2019 u103


9#


. What are the role# o/ a )e(re#entati%e in theadmini#tration o/ an e#tate

2 He ha# to /,l/il all the intention# o/ the te#tator

a''ording to the Will 2 ##entially5 he ha# to en#,re that the e#tate i# *ell

managed5 tran#a'ted and di#tri",ted to the right/,l

"ene/i'iarie#

) i + ti !

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93


. x(lain the di//eren'e# "et*een the onte#tedand the on-onte#ted Bene/i'iarie# 2 on-'onte#ted "ene/i'iarie# are tho#e *ho#e

name# ha%e "een li#ted and their (ro(ortion# o/e#tate ha%e "een allo'ated

2 onte#ted "ene/i'iarie# are tho#e *ho#e name# arenot li#ted5 the#e may 'ome /rom #(o,#e#5

,nmarried da,ghter#5 in/ant #on# andOor mentallyor (hy#i'ally di#a"led minor# *ho are in'a(a"le o/looking a/ter them#el%e#

) i + ti !

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94


&#lami' Fa* o/ inheritan'e #eem# to gi%e /a%o,r tomale# than /emale# What #eem# to "e the rationale

&#lami' la* o/ inheritan'e i# "a#ed ,(on the

re#(on#i"ilitie# o/ the male# o%er the /emale# Thi# i#

'lear /rom the +,rani' in6,n'tion#

The h,#"and /or in#tan'e are to (ro%ide e%erything /or

the *i/e e%en i/ the *i/e ha# her o*n in'ome and the

*i/e doe# not ha%e to #hare her in'ome i/ #he doe# not

*ant to The h,#"and 'an only ,#e her in'ome i/ #he'on#ent#

) i + ti !

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9


an #ome*hat gi%e a*ay hi# (ro(ertya''ording to hi# o*n (er#onal (re/eren'e

He 'an do #o *hile he i# #till ali%e and not on hi#

death "ed

) i + ti !

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9


! man die# lea%ing a *i/e and a #on What arethe (ro(ortion# o/ the e#tate that the *i/e and

the #on #ho,ld get

The *i/e #ho,ld get 1O5 and the re#t goe# to the#on

)e ie + e#tion# !n# er#

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9?


! lady lea%e# her h,#"and5 her /ather and t*oda,ghter# What (ro(ortion# o/ her (ro(erty

*ill ea'h get

h,#"and get# U or 83O1? t*o da,ghter# get ?O3 or8RO1? ea'h and /ather *ill get the re#id,e *hi'h i#

1O1? Thi# i# the 'a#e *here the /ather *ill not get

hi# /ixed #hare o/ 1O


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9


. Fi#t the main /eat,re# o/ the &#lami' la* o/inheritan'e 8 faraid

2 Di#tri",ted "a#ed on re#(on#i"ilitie#5 need and

nearne## or 'lo#ene## to the de'ea#ed


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99


. x(lain *hy it /orm# the "a#i# o/ e#tatedi#tri",tion in &#lam

2 Be'a,#e it i# 'om(rehen#i%e5 'o%er# all the heir#

and i# e##entially +,rani'


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100


. ! man die# and lea%e# "ehind t*o *i%e#5 a #on5 t*oda,ghter# and a "rother /rom the #ame (arent &/ hi#total e#tate i# *orth GSD1005000 ho* m,'h *ill ea'ho/ the "ene/i'iarie# get

2 The t*o *i%e# *ill #hare 1O or 1O1 ea'h or ?O3? ea'h 2 The t*o da,ghter# and the #on *ill #hare NO in the

(ro(ortion that the #on *ill get t*o (ortion# and theda,ghter# one ea'h So5 NO to "e di%ided "y R *hi'h i#NO3? ea'h So the #on get# 1RO3? 8LR35NA05 the da,ghter#NO3? 8L?1NA ea'h and the *i%e# ?O3? 8L?A0 ea'h

2 The "rother doe# not get anything a# he ha# "een "lo'ked "y the #on


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101


. The &#lami' la* o/ inheritan'e i# deri%edmainly /rom the +,r4an Fi#t do*n the main

(rin'i(le# o/ the la*

2 See the (re%io,# an#*er


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10#


. ! *oman die# and lea%e# "ehind a da,ghter5 a "rother /rom the #ame (arent#5 t*o grandda,ghter#and a grand#on *ho are the 'hildren o/ her late #on&/ hi# total e#tate i# *orth GSD1005000 ho* m,'h

*ill ea'h o/ the "ene/i'iarie# get 2 Da,ghter *ill get V J LA05000

2 rand#on and ? grandda,ghter# *ill #hare the other hal/*ith the grand#on getting ? (ortion# and grandda,ghter#

get one (ortion ea'h The "rother get# nothing 2 So the grand#on get# U J L?A5000

2 The grandda,ghter# get 1O ea'h or L1?5A00

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103

Topic Eight:

)etirement (lanning


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104


. What do yo, ,nder#tand "y retirement (lanning

2 )etirement (lanning i# a 'om(rehen#i%e (ro'e## o/

re%ie*ing and analy#ing o,r a##et#5 lia"ilitie#5#a%ing and in%e#tment #trategie# to en#,re there i#

#,//i'ient in'ome /or all o,r need# *hen *e retire

2 &n other *ord#5 "a#ed on the *ealth that *e ha%e

*e *o,ld like to make a 'om(rehen#i%e (lan to

en#,re *e ha%e eno,gh d,ring o,r retirement


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10


. Why i# retirement (lanning "e'oming more im(ortantno* 2 &n the (a#t5 the a%erage in'ome le%el o/ indi%id,al# *ere

not high eno,gh to *arrant a 'om(rehen#i%e (lan

2 Se'ondly5 the a%erage li/e ex(e'tan'y ha# #igni/i'antlyin'rea#ed d,e to ad%an'ement o/ medi'ine andim(ro%ement in 9,ality o/ li/e

2 Thirdly5 there i# al#o an in'rea#e in the 'o#t o/ li%inge#(e'ially medi'al5 *hi'h re9,ire# (ro(er (lan /or healthyli/e

2 $o,rthly5 there i# #igni/i'ant in'rea#e in the a%erage in'omele%el o/ #o'iety that *arrant# a 'om(rehen#i%e (lan to meetall the need# o/ modern li%ing


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10


. There are many /a'tor# that lead to the need/or retirement (lanning Fi#t /o,r o/ them



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10?


. x(lain the #ix #tage# o/ retirement (lanning (ro'e## 2 The #ix #tage# o/ retirement (lanning (ro'e## are:

. Setting retirement (lan goal# 8#etting retirement goal# and the

de#ired li/e #tyle 2 they m,#t "e #(e'i/i'5 reali#ti' and mea#,ra"le

. 7"tain ne'e##ary in/ormation to determine retirement need#8in/ormation (ertaining to /inan'ial #tatement5 re9,ired retirement

in'ome5 re#o,r'e# a%aila"le5 intere#t and in/lation rate5 in%e#tment

o((ort,nitie# 2 *ill hel( a'hie%e the goal# #et a"o%e The#e

in/ormation *ill "e ne'e##ary to 'al',late the /,t,re in'ome need#

,#ing the )e(la'ement in'ome method or the x(en#e method


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10


. !naly#e in/ormation and 'al',late #a%ing needed tomeet the o"6e'ti%e# 8*e need the 'a#h /lo* #tatement

#ho*ing 'lient4# ',rrent ann,al #o,r'e# o/ in'ome and

,#e# o/ 'a#h5 ann,al ",dget li#ting o/ (re#ent and /,t,re

in'ome5 re%ie* o/ all a%aila"le a##et# that *ill "e,tilized to meet retirement need#

. Plan the di#tri",tion o/ the in'ome 8m,#t take into

'on#ideration the ri#k a((etite5 the in/lation rate#5 et'

. &m(lementation o/ the (lan

. )e%ie*ing the (lan 8to re%i#it and re"alan'e the

#trategie#

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109

Topic Nine:

Tax Planning and Management


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110


. What are the 'riteria ,#ed to e%al,ate a tax #y#tem 2 ertainty 2 !ll tax lia"ilitie# #ho,ld "e 'ertain and not

ar"itrary

2 $air 2 !ll tran#a'tion# #ho,ld "e treated /airly /or tax

(,r(o#e# 2 //i'ien'y 2 The tax #y#tem #ho,ld "e a"le to generate the

amo,nt o/ re%en,e re9,ired "y the o%ernment

2 Fo* 'om(lian'e 'o#t 2 Tax la*# #ho,ld "e #im(le #o that'om(lian'e 'o#t# 'an "e ke(t to a minim,m

2 $lexi"ility 2 !#(e't# o/ the tax #y#tem 'an "e %aried9,i'kly to ha%e an immediate im(a't and to a'hie%e othere'onomi' o"6e'ti%e#


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111


. De/ine the /ollo*ing term# 2 hargea"le in'ome 2 S'o(e o/ taxation 2 Tax re"ate#

2 Tax exem(tion# 2 hargea"le in'ome J in'ome that i# taxa"le *hi'h i# gro##

in'ome le## all relie/ allo*ed 2 S'o(e o/ taxation J the de/inition o/ in'ome that i# taxa"le

&t de(end# on *hether the (er#on i# a re#ident o/ the

'o,ntry or not and that hi# in'ome i# earned /rom a'ti%itie#'ond,'ted in the 'o,ntry or remitted /rom o,t#ide &/ a

(er#on i# a re#ident then all in'ome he dri%e# /rom the'o,ntry or remitted /rom a"road *ill "e taxa"le


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11#


2 Tax re"ate J ded,'tion /rom the tax 'harged gtax re"ate i# granted to indi%id,al# *ho#e

'hargea"le in'ome i# le## that L35A00 The re"ate

i# /ixed at #ay L3A000

2 Tax exem(tion J in'ome that i# not taxa"le5 #,'h

a# (en#ion5 intere#t (ayment on 'ertain loan#


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113


. x(lain the /ollo*ing term# 2 Ded,'ti"le ex(en#e#

2 Tax a%oidan'e

2 Tax e%a#ion 2 Do,"le ded,'tion#

2 a(ital allo*an'e

2 Ded,'ti"le ex(en#e# J ex(en#e# that 'an "eded,'ted /rom 'hargea"le in'ome5 #,'h a# ex(en#e

on 'om(,ter5 "ook#5 medi'al "ill# /or (arent#5 et'


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114


2 Tax a%oidan'e 2 legal *ay o/ red,'ing tax "y ,#ingla',nae or mean# o/ e#'a(e or loo(hole# in tax la*#

2 Tax e%a#ion 2 illegal *ay o/ e%ading the (ayment o/ tax

2 Do,"le ded,'tion# 2 do,"le ded,'tion# are #(e'ial

ded,'tion# gi%en to #ome ex(en#e# &t mean# that i/ yo,#(end L?05000 then yo, get a tax ded,'tion o/ LR05000

2 a(ital allo*an'e 2 'a(ital ex(endit,re on ma'hinery5

",ilding# /or 'ertain ",#ine##e# 'an "e ded,'ted /rom the

in'ome "e/ore 'om(,ting the 'hargea"le in'ome


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11


. x(lain the ad%antage# o/ tax (lanning 2 Tax (lanning i# a *ay o/ organi#ing ",#ine##e# in order to

red,'e the (ayment o/ tax in a legal *ay g one may'reate #,"#idiarie# in a *ay that allo*# /or more taxded,'tion# and hen'e red,'e (ayment o/ tax

2 There are many *ay# that 'an "e done to red,'e tax in a ",#ine## en%ironment g the go%ernment may *ant toen'o,rage 'ertain ind,#try and hen'e gi%e# tax holiday#

(ro%ided 'ertain 'ondition# are /,l/illed Then one #ho,ldtake ad%antage o/ #,'h ad%antage# "y /,l/illing the

ne'e##ary 'ondition# /rom the "eginning #o that *hen it'ome# to tax 'om(,tation5 yo, are a"le to 'om(ly *ith there9,irement# to red,'e the tax

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11

Topic :10

Cakat 8zakah


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11?


. De#'ri"e the 'ondition# o/ Cakat (ayment 2 M,#t "e a M,#lim#

2 i%er i# /reeman and not a #la%e

2 The *ealth ha# rea'hed the ni#aa" i#aa" i# the amo,nt ,(on *hi'hthe zakat i# d,e and o"ligatory

2 ! minim,m d,ration o/ 1year 8ha*l ha# (a##ed #in'e o*ner#hi( o/ the*ealth 'on'erned

2 7*ner#hi( o/ the *ealth i# kno*n

2 The *ealth i# /,lly o*ned 8milk,t taamm

2 When a (er#on die#5 hi# zakat d,e m,#t "e (aid /rom the inheritan'e

"e/ore di#tri",tion When a (er#on die# /o,r (ayment# need to "emade:

. De"t# *hi'h in'l,de zakat d,e

. Wa#iyyah 2 a *ill

. B,rial ex(en#e#

. inheritan'e


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11

. De#'ri"e the eight 8 'ategorie# o/ (eo(le *ho 'anre'ei%e Cakat: 2 eedy M,#lim# 8/a9eerO/akir

2 Poor M,#lim#8mi#kin

2 !4amil

2 M,-alla/at, 9,loo"oh,m 8ne* 'on%ert# to &#lam

2 $ir-ri9aa"- #la%e# *ho are M,#lim# *ho are m,kaata"#la%e# They are #la%e# *ho ha%e "een allo*ed "y theirma#ter# to *ork to*ard# /reeing them#el%e# and (aying theirma#ter# the amo,nt d,e in in#talment#

2 !l-ghaarimeen- M,#lim# *ho are in de"t 2 $i#a"ilillah 2 #tri%e in the 'a,#e o/ !llah

2 &"n,#-#a"il 2 tra%eller# 8m,#a/ir *ho are tra%elling /or a (io,# or (ermi##i"le (,r(o#e5 or to ret,rn to their o*n'o,ntry


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119


. De#'ri"e tho#e *ho 'annot re'ei%ed the Cakat 2 on M,#lim#

2 )i'h (eo(le ; they #till 'an get zakat i/ the /all# ,nderghaarim5 or the amil o/ the /i#a"ililah 'ategory

2 The de(endent# o/ tho#e *ho gi%e zakat (ro%ided they are (oor and no longer 'on#idered hi# de(endant#

2 The /amilie# o/ the Pro(het 8(",h

2 Sla%e# 'annot re'ei%e zakat "e'a,#e they already re'ei%ing

maintenan'e /rom their ma#ter#


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1#0


. What are the TW7 ty(e# o/ Cakat 2 Cakat,l-Maal 8 zakat on *ealth namely gold5 #il%er5

',rren'ie#5 #to'k in trade or ",#ine## mer'handi#e5li%e#to'k 8al-an4aam5 'ereal and /r,it# like date# and the

dried gra(e# 2 Cakat,l-/itr - zakat on the (er#on (aid d,ring the month o/)amadhan Cakat,l-/itr i# a((roximately ?3kg o/ the#ta(le /ood o/ the 'o,ntry or it# %al,e


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1#1


. What are the 'ondition# o/ Cakat,l-/itr 2 i%er i# a M,#lim

2 &# a m,kalla/

2 &# a /ree man and not a #la%e

2 !"le to (ay the zakat,l-/itr

2 He i# li%ing d,ring or "e/ore the #,n#et on the e%e o/ eid,l-/itr on theal#t day o/ )amadhan &/ a 'hild i# "orn a/ter the #,n#et on the e%e o/eid,l-/itr5 zakat i# not o"ligatory on him #in'e the e%e i# the #tart o/ 1#t #ha*al


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1##

. What are the 'hara'teri#ti'# o/ Wa9/ 2 &rre%o'a"ility 2 'on#en#,# among M,#lim 6,ri#t that the /o,nder 'annot

re%oke the dedi'ation i/ the (ro(erty ha# already "een de'lared a *a9/

2 Per(et,ality 2 ma6ority o/ M,#lim 6,ri#t "elie%e *a9/ m,#t "e (er(et,al on'e it i# 'reated and thi# *ill en#,re that no 'on/i#'ation o/*a9/ (ro(erty "y go%ernment or "y indi%id,al#

2 &naliena"ility- /eat,re originate# a# the (ro(erty o/ *a9/ i# tran#/erredto !llah8#*t altho,gh the ,#,/r,'t deri%ed /rom it 'an "ene/it man

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1#3

Topic :11

Wa9/


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1#4


. What are the 3 ty(e# o/ *a9/ 2 Wa9/ Khayri 8(,"li' *a9/ 2 i# an endo*ment made "y the /o,nder to

#,((ort the general good and *el/are o/ (oor and the needy in #o'iety

2 !l-*a9/ al-Dh,rri5 !l*a9/ al-ahli and *a9/ ala-*lad 2 are #ame andre/er to /amily *a9/ The /o,nder endo*# hi# (ro(erty to hi# 'hildren5

grand'hildren5 relati%e# or other (er#on# *hom he #(e'i/ie# &/ the "ene/i'iarie# not longer ali%e5 then *a9/ (ro(erty *ill "e gi%en /or (,"li' *el/are (,r(o#e# n'o,rage "y the Pro(het 8(",h

2 !l-*a9/ al-m,#htarak 8'om"ined (,"li' and /amily *a9/ 2 'reated "ythe /o,nder to #,((ort "oth the (,"li' and hi# /amily


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1#


. De#'ri"e the 'ondition# /or %alidity o/ *a9/ 2 $o,nder m,#t "e a9il 8#o,nd mind5 "aligh 8ad,lt and h,rr

8 a /ree manO*omen and 'a(a"le to tran#/er the o*ner#hi(to the o*ner#hi( o/ !llah

2 Dedi'ated (ro(erty 'an either "e mo%a"le or immo%a"le 2 !((oint a m,tta*alli 8tr,#tee either him#el/ or #omeone

el#e

2 Bene/i'iarie# 'an "e #(e'i/ied "y the /o,nder in hi#*a9/iah 8*a9/ deed5 it 'an "e either hi# /amily mem"er#5#o'iety

2 reation 'an "e either oral ie %er"al or *ritten


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1#

. De#'ri"e the endo*ment !##et# 8al Ma*9,/ 2 &mmo%a"le and mo%a"le (ro(erty 2 land /ield5 /arm#5

",ilding#5 mo#9,e are immo%a"le Mo%a"le are 'attle andim(lement# o/ animal h,#"andry5 "ook#5 money5 'ro(#5*ea(on#5 and #hare o/ 'om(any

2 Wa9/ #ahih 8#o,nd *a9/ and *a9/ ghair #ahih 8,n#o,nd*a9/- *a9/ #ahih i# the *a9/ ,(on m,lk land ie Pri%atelyo*ned /reehold (ro(erty o%er *hi'h the o*ner held'om(lete right# o/ alienation Wa9/ ghair #ahih are #tateo*ned land and *ho#e (ro(erty "elong# to the em(ire4#

(,"li' trea#,ry 2 Dire't and indire't *a9/# 2 dire't *a9/ i# a *a9/ 'reated to

#er%e the (eo(le /ree o/ 'harge like mo#9,e5 #'hool# The'reation o/ indire't *a9/ i# needed in order to (ro%ider,nning ex(en#e# eg )enting (ro(ertie#


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1#?

What are the re#tri'tion# to *a9/

2 irre%o'a"ility 2 /o,nder 'annot re%oke the dedi'ation i/ the (ro(erty ha# already "een de'lared a# *a9/

2 Per(et,ity 2 *a9/ 'reated m,#t "e (er(et,ity thi# *illen#,re no 'on/i#'ation o/ the (ro(erty "y the go%ernment

or indi%id,al 2 &naliena"ility o/ the Wa9/- on'e the (ro(erty o/ *a9/ i#

tran#/erred to !llah 8#*t no one 'an e%er "e'ome o*ner o/it The ,#,/r,'t deri%ed /rom it 'an "ene/it man a#intended


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1#

. What are the T 810 #ti(,lation# /or the

'reation# o/ Wa9/ 2 Ciyadah 8in'rea#e and ,9#an 8de'rea#e 2the /o,nder 'an in'rea#e the #hare

o/ one "ene/i'iary or de'rea#e the #hare o/ another g 9,al #hare /or

mo#9,e and ho#(ital Ho#(ital re9,ire# more /,nd5 the /o,nder 'an 'hange the

re%en,e to in'rea#e /or ho#(ital and red,'e /or mo#9,e

2 &dkal 8addition and &khra6 8remo%al 2 add ne* "ene/i'iarie# and remo%eanother- /lexi"ility /or (,"li' *a9/

2 &4ta a 8granting and Hirman8di#(o##e##ion 2 allo*# /o,nder to grant all or a

(ortion o/ hi# *a9/ re%e",e to *home%er he 'hoo#e# /or a #(e'i/i' (eriod and

di#(o##e## )e%en,e /or #'holar#hi( 'an "e 'hannelled to heart (atient in

ho#(ital

2 Taghir8re(la'ement and Ta"dil 8'on%er#ion 2 /o,nder 'an re(la'e ,#e o/ the*a9/ re%en,e to (,r'ha#e o/ ho#(ital e9,i(ment in#tead o/ rental maintenan'e

*hile ta"dil allo*# the /o,nder# the right to 'hange the *a9/ (ro(erty

g'on%ert ,n(rod,'ti%e land to ho,#ing to gain re%en,e

2 &#ti"dal 8#,"#tit,tion and &"dal 8ex'hange &"dal a't,al #elling o/ non-

(ro/ita"le *a9/ (ro(erty *hile &#ti"dal i# the (,r'ha#e o/ another (ro(erty


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1#9

. De#'ri"e the mode# /or &mmo%a"le *a9/ 2 Hikr 8long lea#e right- *a# de%elo(ed to (re%ent the *a9/ (ro(erty /rom "eing

#old in 'a#e it 'ame to any harm The right i# gi%en to the tr,#tee to lea#e the*a9/ (ro(erty on a long lea#e at a nominal (eriodi' rent The right i# #old /or al,m( #,m5 *hi'h i# e9,al to the %al,e o/ the *a9/ (ro(erty in ad%an'e and *itha nominal (eriodi' rent (aid tot he tr,#tee

2 !l-i6aratian 8the lea#e *ith d,al (ayment 2 re#,lted /rom de#tr,'tion o/ #ome /o*a9/ (ro(ertie# "y /ire in on#tantino(le 810?0!H d,al method o/ /inan'e and

re'on#tr,'t the#e damage *a9/ (ro(ertie#5 Thi# i# al#o a long lea#e 'ontra't *itha large l,m( #,m to "e (aid in ad%an'e *hi'h i# a((roximately e9,al to the%al,e o/ the *a9/ (ro(erty /or re'on#tr,'tion and *ith a nominal (eriodi' rent

2 !l-i#ti"dal 8#,"#tit,tion- emerge /rom the /a't that the *a9/ (ro(erty 'annot "e#old M,#lim 6,ri#t agree# to ex'hange the *a9/ (ro(erty *ith another (ro(ertyor /or money in order to reno%ate the old one# &/ the *a9/ (ro(erty 'an no

longer generate re%en,e &t (ro%ide# li9,idity and the di#ad%antage i# that it lo#thal/ o/ the *a9/ (ro(erty or it# good lo'ation

2 !l-m,r#had modeX in *hi'h ad%an'e l,m( #,m i# (aid "y the le##ee to "e'redited "y the *a9/ de(artment to*ard# the agreed ,(on (eriodi'al renta((li'a"le a/ter re'on#tr,'tion !d%antage land i# de%elo(ed5 di#ad%antage i#that the le##ee *ill 'laim hi# o*ner#hi( o/ thi# land a/ter a long time


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130

. De#'ri"e the mode# /or mo%a"le *a9/

2 Ye*ellery 'an "e 'reated a# *a9/ and no zakat /or *a9/ (ro(erty

2 Mea#,ra"le and *eighta"le *a9/ (roe(rty 'o,ld "e #oldand it# (ro'eed# 'an "e in%e#ted in mudarabah ie 'hangingit# #tat,# /rom 'ro(# to 'a#h *a9/8*heat #eed grain gi%en

to (oor /or ',lti%ation and taken "a'k and gi%en to other#5in the *ay (er(et,ality o/ the *a9/ i# maintained

2 a#h *a9/ 8li9,id /orm 'an ,tili#ed udarabah (artner#hi( &mam C,/ar *ho a((ro%ed the %alidity o/

darahi 8money to dedi'ated a# *a9/ #ay# that the moneyde(o#ited a# a *a9/ 'an "e in%e#ted in m,dara"ah and theret,rn to "e ,#ed /or a (io,# (,r(o#e

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131

Topic 12:

&##,e# )elated to Wealth Planning andManagement


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13#

+

. De#'ri"e the ,#er# and (ro%ider# o/ *ealth (lanning#er%i'e# 2 G#er# o/ *ealth (lanning #er%i'e# are high net *orth

indi%id,al# *ho *ant to en#,re that they *ill "e a"le to

enhan'e their *ealth; 'or(oration# *hi'h are keen toenhan'e the a##et# they ha%e5 either /or the "ene/it o/#hareholder# or /or the em(loyee# retirement (lan#

2 Pro%ider# o/ *ealth (lanning are (ro/e##ional# *ho kno*a"o,t *ealth (lanning (ro'ed,re# and #trategie# The#e

'o,ld "e indi%id,al# or #(e'ial /irm# *ith #,'h ex(erti#exam(le# o/ #,'h (ro/e##ional# are "ank manager#5in#,ran'e O taka/,l agent#5 ,nit tr,#t agent#5 tr,#tee agent#


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133

+

. What in yo,r o(inion i# the mo#t im(ortant/,n'tion o/ go%erning "odie# in the *ealth

management ind,#try

2 To en#,re that the *ealth (lanning (ro/e##ional#are tr,ly 9,ali/ie# and 'erti/ied

2 To (rote't the intere#t o/ 'lient#

2 To en#,re there i# (ro(er training (rogramme# and9,ali/i'ation# /or *ealth (lanning (ro/e##ional#


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134

+

. &# there really a need /or reg,latory 'ontrol*hen yo, /ind that the "anking and other

/inan'ial #e'tor ha# gone into dereg,lation

in#tead 2 !ltho,gh *ealth (lanning i# #omething 9,ite

re'ent5 there #ho,ld "e e//ort# to*ard# normali#ing

the a'ti%itie# in the ind,#try Thi# i# %ery im(ortant

"e'a,#e 'lient# may loo#e o,t i/ the (ro/e##ional#

are not gen,ine


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13

+

. Why do yo, think ethi'# and the 'ode o/'ond,'t i# 'on#idered e##ential in the *ealth

(lanning and management ind,#try

2 To a'hie%e a high le%el o/ integrity5 o"6e'ti%ity5'om(eten'e5 /airne##5 'on/identiality5

(ro/e##ionali#m and diligen'e


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13

+

. Do yo, agree *ith B,rke hri#ten#en4##,gge#tion on <Pro/e##ionali#m= and *hy

2 B,rke hri#ten#en #,gge#ted5 <! (ro/e##ional i# a

(er#on engaged in a /ield that re9,ire# 81#(e'iali#ed kno*ledge not generally ,nder#tood "y

the (,"li'5 8? a thre#hold entran'e re9,irement5

83 a #en#e o/ altr,i#m5 and 8R a 'ode o/ ethi'#=

Di#',##

7/23/2019 u103


Thank yo,

and all the "e#t to all o/ yo,

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