Inheritance of Shares, Family Businesses, and Digital Assets: A Practical Guide
Today's inherited wealth is not only houses and rice fields. Shares, family businesses, and digital assets must also be calculated and divided according to faraid. Here is how to understand and prepare for it.
Inherited wealth is now broader than houses and rice fields
Many families still imagine inherited wealth as land, houses, or rice fields. In fact, when a Muslim passes away today, what is left behind may be a share portfolio, mutual fund accounts, ownership in a family business, digital wallet balances, and even accounts with economic value such as online stores or work royalties.
In KHI Book II, specifically Article 171 letter e, inherited wealth is formulated as inherited property plus the share from joint property, after deducting the deceased's needs during illness until death, funeral expenses, debt payments, and gifts to relatives. This means that all types of property — whatever their form — are basically included in the calculation, as long as they were owned by the deceased and still had value at the time of death.
Allah instructs you concerning your children (inheritance)… (QS. An-Nisa 4:11)
This verse and KHI Book II (Articles 171–214) are the main references, while the forms of property to be divided continue to develop with the times.
Shares, mutual funds, and sukuk: what is actually divided?
What is divided is not the share certificates as physical objects, but the value of those assets. Therefore, the first step is to value the portfolio on the date of death, not on the date of division. If the price rises or falls after the deceased's death, that change becomes the right or risk of the heirs jointly, according to their respective portions.
Several matters to note:
- Record all securities accounts, mutual funds, sukuk, and digital gold along with their account numbers and latest values.
- Separate which are joint property (gono-gini) and which are the deceased's inherited property.
- Settle the deceased's debts first, including margin obligations, loans, or unpaid administrative fees.
- Ask the securities firm or investment manager directly about the documents they require; generally this involves a death certificate and heirs' documents.
The safest way is to sell part of the assets to pay the shares of heirs who do not want shares, then divide the remainder in the form of shares if everyone agrees.
Family business: its value and continuity
A family business is often the most valuable asset, but also the hardest to divide. Not all heirs want to continue the business, and a business that is stopped can quickly lose its value.
There are several options commonly taken by families. First, some heirs continue the business and buy out the shares of other heirs based on an agreed value. Second, the business is sold to a third party and the proceeds are divided. Third, ownership is converted into shares or a certain percentage, so that each heir holds a portion according to their inheritance share and the business continues to operate.
Whatever the choice, the business value should be calculated with the help of an accountant or independent appraiser, and the agreement should be made in writing and known to all heirs. If the heirs are still unsure about the validity of the form of the agreement, consult a notary or the local Religious Court (Pengadilan Agama).
Digital assets that are often forgotten
Digital assets are easily overlooked because they are not physically visible and are often known only to their owner. In fact, digital wallet balances, marketplace account balances, investment account balances, and crypto assets can be quite valuable. An online store account that has been running for a long time can also have economic value.
What most often becomes a problem is not the division, but access. Without records, the family does not know what accounts the deceased had. Therefore, get into the habit of recording a list of digital assets in a safe place known to the spouse, without sharing passwords carelessly during one's lifetime.
It should be noted that legal recognition and treatment of digital assets in Indonesia is still developing and may differ between service providers. For the technical steps of withdrawal, request official information from each service provider, and if the value is large, involve a notary or tax consultant.
A simple example: house, shares, and digital assets
Mr. Hamid passed away and left a wife, two sons (Rizki and Fajar), and one daughter (Sari). After joint property is separated and debts are paid, the remaining inherited wealth is worth Rp900,000,000, consisting of a house portion of Rp300,000,000, shares of Rp400,000,000, and digital assets of Rp200,000,000.
| Heir | Share | Amount |
|---|---|---|
| Wife | 1/8 (because there are children) | Rp112,500,000 |
| Rizki (male) | Remainder divided 2:1 | Rp315,000,000 |
| Fajar (male) | Remainder divided 2:1 | Rp315,000,000 |
| Sari (female) | Remainder divided 2:1 | Rp157,500,000 |
The total is Rp900,000,000, exactly fully divided. This division applies to the value of the entire estate, not per type of asset. So Sari does not automatically "receive digital assets," and the wife does not automatically receive the house; what is divided is the value, then the family agrees on which assets are given to whom.
Practical steps before and after division
- Make a complete list of all assets: land, savings, shares, mutual funds, business, and digital assets.
- Separate joint property from inherited property, then deduct funeral expenses, debts, and will (maximum one-third).
- Ensure who the heirs are, including whether there are substitute heirs according to Article 185 of KHI.
- Calculate each person's share based on An-Nisa 4:11, 4:12, and 4:176 as well as KHI Book II.
- Agree on the form of transfer: assets are sold first, or divided in their original form.
- Put the agreement in writing and handle its administration, such as share name transfer or account transfer.
- Consult the Religious Court (Pengadilan Agama), notary/PPAT, or a trusted ustadz if there are differences of opinion.
Calculating the value and portions of property such as shares, businesses, and digital assets is indeed more complicated than calculating rice fields. To make it easier, IndoWaris can draw the family tree as well as calculate each heir's share, so that the family has a clear picture before moving on to administrative matters.
This article is general information, not a fatwa or legal advice. Every family has different circumstances, so it should still be consulted with the competent authorities.
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