Purpose This study aims to analyse the mechanism of trust instrument from a Shariah point of view. Analysis of the mechanism would determine the extent to which its implementation can resolve estate planning issues such as frozen estate and the issue of naming beneficiaries under the age of 18. Design/methodology/approach This is a qualitative study method through library research. To explore the mechanism of trust instrument, an in-depth interview with five participants using purposive sampling and analyses of documents were used. The selection of this sample allows the researcher to obtain specific data in their field of expertise. Therefore, two officers from the Trust Administration Department of Amanah Raya Berhad (ARB) and three Shariah advisors from ARB (MPS ARB) were interviewed to find out the mechanism of trust instrument from the Shariah perspective. The researcher also referred to the trust deed documents, ARB company policies, field case studies such nomination cases and trust accounts, articles and court cases. Findings The trust instrument meets Shariah requirements even though it is based entirely on the Civil Law. The comprehensive and flexible features of trust deeds can help donors to plan systematically during their lifetime. Research limitations/implications This study only focuses on the trust instruments that are currently being implemented in the ARB. Five trust products were analysed to achieve the objectives of the study, namely, the Normal Trust, Safecare and Safecare Premium, Takaful Care, Hibah (literally “gift”) as well as Trust and Declaration of Hibah. Practical implications The implementation of trust instrument at an early stage can ensure the property is well managed through a trust deed, guarantee the life of the beloved heirs after the death of the donor and prevent the property from being frozen. Originality/value This study comprehensively describes the trust instrument from the Shariah perspective and its implementation mechanism in the industry.

This article studies the hidden wisdom behind the pronouncement of conditional divorce, the rules and conditions prescribed by the jurists, as well as the forms and types of ta’līq in shariah law. This article also seeks to look at the practice of ta’līq in Malaysia as well as provisions under Islamic family law in Malaysia, as well as the practice direction issued by the Department of Syariah Judiciary Malaysia. The study employed library research to expound the opinions of earlier jurists from various schools of Islamic jurisprudence, and textual studies on the provisions of law related to the issue concerned. The study found that the wording of the official pronouncements of ta’līq varies from state to state, hence the consequences can also differ. The researcher is of the view that the practice of pronouncing ta’līq after the solemnization of a marriage contract should be reviewed. It needs to be said that the validation of a divorce by ta’līq is a more complicated process than an ordinary divorce.

The study of penal clauses is one of the most important aspects that should be jurisprudentially studied and highlighted. This is because in their contracts, most of the Islamic banks have stipulated several penal conditions to preserve their financial rights, achieve guarantees, reduce their risks in dealing with customers, address the problem of procrastination in debt settlement and financial obligations. No contract exists without a set of penal clauses, such as the condition of penalty for delay in the event of late payment, the requirement that the expenses of the lawsuit should be paid by the procrastinator of debt and other conditions. There is an urgent need to study these penal conditions and identify the extent to which they agree or disagree with the rulings of Islamic Shariah so that the transactions of Islamic banks can be free of forbidden or suspicious transactions, especially those in which there is ribā or suspicion of ribā. This paper is an attempt to highlight the position of Sharia on the penal conditions applied in the Ijārah contract that leads to ownership.

Amanah Saham Bumiputera (ASB) is a Malaysian initiative trust fund that was established in 1990 with the basic aim of enhancing the financial independence and improves the economic control of the Bumiputera Malaysians. This effort has provided investment opportunity for its target audience as an alternative savings scheme in order to generate long term consistent and competitive returns on investment.  Despite the achievement and successful result recorded by the establishment, there are continuous quest particularly among the Bumiputera on the extent of Shariah compliance of the investment channels of ASB trust fund. Although ASB was designed as a fixed price equity income fund at RM1.00 with no sale charges, the return on investment as declared dividend is questionable. More so, the means of investment and in which product or services to invest pool fund is a question for debate among the investors. Despite the latest Fatwa MKI pronouncement by Muzākarah Jawatankuasa on this issue in 2012, which declared that investments in ASB and other relative investments are “harus”, that is investing in ASB is neither prohibited nor allowed from an Islamic perspective. It is rather Mubāḥah; based on free choice. Hence, there are still arguments as to whether ASB is prohibited in Islam. The researcher therefore aims to explore into the methodology of the Fatwa committee of the National Council for Islamic Affairs on how and why permissible position was taken in comparison with the position of PNB on its permissibility. The study also conducts textual analysis on Islamic principles, maxims and conditions on issuing fatwa on matters relating to Islamic financial transactions as reported in Islamic literatures. The study also employs the Maqāṣid shariah approach in arriving at suitable findings and recommended the stakeholder of ASB trust fund and other Islamic financial institutions in Malaysia need to come to a common ground on the use of maṣlaḥah as evidence for the permissibility of the ASB in Malaysia context.