financialtreat – will explain about Wealth Purification and Wealth Distribution in Sharia Wealth Management that you will get in the following article. Let’s look at this article carefully!
The concepts of capitalist, socialist and Islamic economy certainly have differences. Capitalists with their freedom, socialists with equal concepts and Islam that combines the two. The existence of differences that cause in the concept of wealth management there is also a difference.
The most noticeable difference in the concept of conventional wealth management and Shariah is the existence of Wealth purification and wealth distribution. Both are characteristic of Sharia wealth management. Well, that’s a further explanation, check out the following article.
Purification and Distribution of Wealth
Islam requires good physical (body) and spiritual hygiene. Spiritual hygiene involves the cleanliness of the mind, so that it is free from bad intentions or the desire to commit acts that violate the law and cleanliness of the heart so that it is free from envy, hypocrisy and evil desires. Spiritual hygiene is linked to hope, truth, forgiveness, and compassion. The imposition of zakat in Islam aims to assist Muslims in achieving spiritual hygiene and purification of wealth.
Zakat is mandatory for any Muslim whose wealth has reache a certain level to pay zakat. The amount of zakat is 2.5% of financial assets owne or tradable goods. Zakat procurement is a means of narrowing the gap between rich and poor by helping to meet the needs of people who are still disadvantage. The distribution of wealth also occurs through inheritance law or in Islam known as faraid. The purpose of the faraid is to regulate the distribution of a Muslim’s property after death.
Faraid or Islamic inheritance law, automatically establishes spouses, biological parents, children known as heirs as state in the Qur’an. Grandchildren, adopte children, illegitimate children, foster parents, non-Muslim parents, non-Muslim children, and non-Muslim family members are not included as heirs under Islamic law.
A Muslim can give one-third (1/3) of his wealth when he is about to die. Therefore, one-third of his wealth can be passe on to heirs outside sharia through the provisions of the will. A will (will) is considere the religious obligation of all Muslims in the form of oral or written messages. Typically, a will or will must be declare in the presence of two witnesses in order to be valid or valid so that it can be accepte if it is written in the known handwriting of the heir and signe to his knowledge.
Paying zakat is a form of worship to Allah. The original meanings of the word zakat were “purification” and “growth”. According to the term zakat means the obligation of a Muslim to issue a net value of his wealth that does not exceed one nisab, given to mustahik with some predetermine conditions.
Zakat, in the sacre sense, is to cleanse oneself, soul, and treasure. A person who issues zakat means that he has cleanse himself and his soul from miserly diseases, cleansing his property of the rights of others. While zakat in the sense of blessing is the remaining property that has been issue zakat qualitatively will get blessings and will grow even though quantitatively the amount is reduce.
Paying zakat is an obligation for every Muslim. in addition Paying zakat is the third pillar of Islam, and it is also important no different from other obligations. Paying zakat means giving a certain percentage of a particular asset to give to a person who is in a particular classification.
A Muslim believes that paying zakat will cleanse the heart of bad traits. Zakat is generally divide into two types, namely: first, zakat relate to the human soul (body) namely zakat fitrah, and secondly, zakat relate to property or mal zakat.
Wealth Distribution Zakat Fitrah
Zakat fitrah is a number of basic foodstuffs issue in Ramadan by every Muslim for himself and for people he bears who have excess basic food for a day on Eid al-Fitr.
Wealth Distribution Zakat Harta (Mal)
Zakat property is the share of property set aside by a Muslim or a body owne by a Muslim in accordance with the provisions of the religion to be given to those who are entitle to receive it. In general, the treasures that must be increase are:
Gold and Silver
A Muslim who has gold and silver is oblige to issue zakat when in accordance with nisab and haul. The gold nisab is 20 dinars equivalent to 85 gr. And the silver nisab is 200 dirhams or equivalent to 672 gr.
Nisab is the minimum amount that causes a person to pay zakat. While haul is the ownership period of the goods has even a year. That is, when someone has gold weighing 100 grams. And has passe one year, then a must pay zakat, which is 2.5% of the money worth 2.5% of the mas weight.
Business property is all that is intende to be trade in various types, both in the form of goods such as tools, clothing, food, jewelry, and others. The business is pursue individually or in association such as: CV, PT, Cooperative, and so on. Nisab zakat trade is the same as gold nisab which is worth 85 grams of gold, with a zakat content of 2.5%. Zakat can be paid with money or goods and is impose on trade or the company.
Agricultural products are the result of plants or plants of economic value such as grains, tubers, vegetables, fruits, ornamental plants, grasses, leaves, and others. Nisab agricultural products are 5 wasq or equivalent to 750 kg. The zakat rate for agricultural products if irrigate with rainwater, or rivers / springs / water, then 10%, if irrigate by watering/irrigation (there is an additional cost) then the zakat is 5%.
Livestock that must be raise are camels, cows and buffalo, goats and sheep with conditions until senisab. Have reache haul, graze, and not employe. For livestock to be issue zakat, then the animal must be 1) healthy in the sense of not injuries, defects, limping. And other deficiencies that reduce the benefits and prices. 2) Female and sufficient age base on nash provisions. Nisab and animal zakat levels are different for each type of animal.
Rikaz (Hidden Treasure)
Rikaz is a hidden treasure since antiquity. And is found on a piece of land that is not owne by someone such as gold, silver, iron, tin, vessels, and so on. For this pent-up item, zakat must be issue 1/5.
Ma’din (mine products) are objects that are containe in the bowels of the earth. And have economic value such as gold, silver, tin, copper, marble, jade, petroleum, coal, and others. The wealth of the sea is everything that is exploite from the sea such as pearls, amber, marjan, and others. According to the Hanafi school and qaul shafi’i school argues that the mandatory issue of zakat is 1/5. While the Maliki, Shafi’i, and Hambali schools argue that the zakat must be issue is 1/40.
Prospects for Islamic Personal Wealth Management in Indonesia
The emergence of outlets. And products that are increasingly varie Islamic financial services turne out to slowly give rise to a new form of Islamic financial industry. It namely Islamic wealth management. Or in some aspects of the discussion of wealth management is also known as Islamic financial planning.
Various Islamic financial portfolios in the form of deposits, mutual funds, insurance. Capital markets and so on are the choice of upper-middle-class Muslim families in managing their property. The development of the industry is able to serve these groups of people to the needs of economic activity in accordance. This need arises along with the growing middle. And upper Muslim population of Indonesia which reflects also the growing Islamic spirit between them.
Adequate income and increasing savings rates among Muslim families, further stimulate the wealth management service industry. Moreover, these conditions are supporte by conditions where Muslim individuals are getting narrower free time to take care of their wealth. The presence of wealth managers will of course greatly help the segmentation needs of this society.
Also read Financial Management:
- Managing Billionaire-style Family Finances
- Get acquainted with the Financial Pyramid of Planning a Retirement!
Even this wealth management is not only in terms of profit-oriente management but also social orientation and other family needs. Such as the allocation of wealth to pay zakat, infak, alms or waqf obligations. In addition. for the expenditure of family needs, for example. Such as alternatives and allocation of Islamic school fees for children and recreation.
Islamic Wealth Management currently in Indonesia has considerable potential to be develope into Islamic banking products. This personal wealth management allows Islamic bank customers to be able to make investments in accordance with Sharia principles. In addition, with the management of personal wealth. It is also easy for parties intereste in the distribution and receipt of zakat. Thus, the prospect of personal wealth management in Indonesia has a fairly important role in the welfare of the community.
Well, that was an explanation of the concept of Wealth Purification and Wealth Distribution in Sharia Wealth Management. Good luck, yes!