Parental Grants to Children and Their Relation to Inheritance

Definition of Grant (Hibah) and Its Difference from Inheritance

A grant (hibah) is the giving of property from one person to another during their lifetime, without expecting anything in return. Within a family, parents often give grants to their children, for example giving a house, land, or money. This differs from inheritance, which only transfers after the owner of the property passes away. A grant is binding and cannot be revoked, except under certain circumstances discussed by the scholars.

Although separate, grants and inheritance can be interrelated. A parent who gives a large grant to one child, then passes away, may raise the question: does that grant reduce that child's share? This is where KHI provides guidance.

What Does KHI Say about Grants and Inheritance?

The Compilation of Islamic Law (KHI) Book II regulates inheritance, including grants. Article 211 of KHI states: "A grant from a parent to their child may be counted as inheritance." This means that if a parent gives a grant to a child, the grant may be considered part of that child's inheritance. The aim is to ensure the distribution of inheritance remains fair and no child receives more than the others.

However, not all grants are automatically counted. This calculation is usually done if:

• The grant is given to only one or a few children, while other children receive none.
• The value of the grant is significant compared to the inheritance.
• The heirs agree to count it, or a court ruling orders it.

If the grant is given to all children in fair portions, or given to non-heirs, it is usually not counted as inheritance. KHI also regulates that a will (wasiyat) may only be a maximum of 1/3 of the inheritance, whereas a grant has no numerical limit, but must still observe fairness.

Example Calculation of a Grant Counted as Inheritance

Let us look at the following illustration. Mr. Ahmad passed away. He left three children: Budi (male), Citra (female), and Doni (male). Before his death, Mr. Ahmad gave a house worth Rp300 million as a grant to Budi. The remaining inheritance after debts and funeral expenses is Rp600 million.

Since the grant to Budi may be counted as inheritance, the total property to be divided is Rp600 million + Rp300 million = Rp900 million. The distribution follows Islamic rules: a son receives two shares of a daughter. So Budi : Citra : Doni = 2 : 1 : 2. Total shares = 5.

Value per share = Rp900 million : 5 = Rp180 million. Thus:

Budi has already received a grant of Rp300 million, so he is still entitled to an additional Rp60 million from the remaining property. Citra receives Rp180 million, and Doni receives Rp360 million. Thus, the total received by Budi is Rp300 million + Rp60 million = Rp360 million, the same as Doni. This distribution is fair and in accordance with KHI.

Things to Consider Before Giving a Grant

A grant is the right of parents, but to avoid conflict in the future, several things should be considered:

• Intention and purpose of the grant. Is the grant to help a child in difficulty, or as part of the inheritance? Both are valid, but the consequences differ.
• Fairness among children. Islam encourages parents to be fair to their children. Giving a grant to only one child without strong reason can trigger jealousy and dispute.
• Form of the grant. For immovable property such as land and houses, the grant should be made with a notarial deed or PPAT so that it is legally valid and easy to prove.
• Records and communication. Record the value of the grant and inform the other children. Openness is far better than keeping secrets that can explode into conflict.
• Consultation. If in doubt, ask an ustadz, notary, or Religious Court. They can provide advice according to your family's situation.

Practical Checklist for Parents and Children

Before giving or receiving a grant, use this simple checklist:

1. Ensure the grant is made consciously and without coercion.
2. Make a list of the property to be granted along with its value.
3. Discuss the grant plan with all children, or at least inform them.
4. For land and buildings, process the grant deed at a notary/PPAT and record it at the land office.
5. Keep proof of the grant (deed, receipt, transfer) neatly.
6. If there is a child who does not receive a grant, consider whether there will be compensation later.
7. Consult whether the grant will be counted as inheritance according to KHI Article 211.

Next Steps for Fair and Peaceful Inheritance

Grants and inheritance are two things that can go hand in hand, as long as they are managed transparently and fairly. The key is open communication and good record-keeping. If parents plan to give a grant, explain to the children why and how it is calculated. If parents have passed away and a grant is only then discovered, the heirs can calculate it together, or request help from a competent party.

IndoWaris can help you draw a family tree and calculate inheritance shares automatically, including if there is a grant to be counted. However, the final decision must still be based on family deliberation and, if necessary, a Religious Court determination.

Practical steps you can take now:

1. Inventory all property, including any that has been granted.
2. Bring the family together to discuss the distribution plan.
3. Consult with a notary/PPAT for land grants, or with the Religious Court for inheritance disputes.
4. Use IndoWaris for calculation simulations so all parties see the same numbers.
5. If agreement is reached, put the agreement in a written document.

That way, inheritance does not become a source of division, but rather a means of strengthening family ties.

Note: This article is general information and not a fatwa or legal advice. For specific cases, consult an expert.