Pri-Hibah (Hibah Declaration)

Hibah is a transfer of property without any exchanges of consideration with a definite proposal on the part of the person who gives the gift and acceptance on the part of the person to whom the gift is given. “Pri-Hibah” is a product of as-Salihin so named to reflect the use of “Hibah” as a mechanism to protect the rights of the settlor’s intended beneficiary. In effect, it is a gift instrument.

What is Pri-Hibah?

Pri-Hibah is a declaration of Hibah by the owner of a specific asset stating that he gives the asset to the beneficiary and he is holding the asset for the benefit of the beneficiary. It is a written document wherein the terms and conditions on which the Settlor is holding the assets are set out.

Characteristics of Pri-Hibah at as-Salihin :

  • The declaration takes effect immediately (at the time the declaration is made).
  • Only gifts from a parent or a grandparent to a child or a grandchild is revocable.
  • It is not subjected to Faraid but subject to the terms of the Pri-Hibah.
Hadiah Untuk Semua

Advantages of creating Pri-Hibah

The Pri-Hibah asset is not considered part of the Settlor’s estate (as it takes effect immediately according to the terms and conditions in the Pri-Hibah) and consequently is outside the distribution rules of Faraid. It can therefore be used to balance distribution.

Subject to the above, the Settlor has the power to revoke the Hibah.

The Settlor can be assured that the intended beneficiaries are taken care of even upon his incapacity, not solely upon his death.

The Settlor continues to enjoy part of the benefits of the Pri-Hibah asset while he is alive and can appoint a protector to safeguard the interests of minors’.

Why Let Others Determine Distribution of Your Assets When You Depart?

You have the right to choose the administrator of your estate and its plan of distribution upon your demise.

Scroll to Top