Fatwa No : 35496
Distributing One's Wealth during One's Lifetime

Distributing One's Wealth during One's Lifetime

الجوابُ حامِدا ًو مُصلیِّا ً

In the name of Allah, the Beneficent, the Merciful
Every person (while he is alive, fit and has not reached his death bed) is the sole owner of all of his wealth and possessions, and is free to dispose of it in any permissible way. It is not necessary for him to distribute it to his children or family members during his lifetime. However, if one, while he is fit and healthy, happily decides to distribute his wealth to his children during his lifetime, then it would be permissible for him as per Shari’ah. However, this distribution of wealth is not counted as inheritance, in fact, it is a gift from him to his children. A good method distributing one’s wealth will be to firstly deduct/keep for oneself the amount of wealth that would be enough for him to maintain himself for the remainder of his life, and then distribute the rest equally amongst his children, making them he sole owner and possessor of their share so that the gifting process will be complete and valid as per Shari’ah. Merely writing their names on documents is not enough to complete this process. Nonetheless, even though it is also permissible to gift some of them a greater or lesser amount than the others, it is still better to be equal. However, a parent gives any of his children a larger amount due to his dutifulness to him or his piety, then he is free to do this. However, one must not deprive any of his hairs from their share of inheritance without a lawful (Shar’ee) reason. This is indeed a sinful act.
And Allah knows best.