THE PRACTICE OF HIBAH AS AN INSTRUMENT FOR GOLD ASSET DISTRIBUTION IN MALAYSIA

Hibah (inter vivos gift) is increasingly popular as a method of wealth distribution prior to the implementation of faraid (Islamic inheritance law). Although hibah is recommended (sunnah), its practice can help reduce inheritance conflicts within society by facilitating earlier wealth distribution before assets become part of the estate. This is important given the frequent reports of disputes over inheritance. Today, the potential for wealth accumulation has broadened, leading some individuals to convert a portion of their wealth into gold. This trend raises concerns that inheritance issues in Islamic law may become more complex, particularly in a society that traditionally focuses on land and real estate. This study aims to explore and develop an understanding of how hibah can be applied in the distribution of gold assets from both syariah and existing legal perspectives in Malaysia. The study adopts a library research methodology, using sources such as books, papers, journal articles, websites, and past research. This method supports analysis of the relevant knowledge, findings, and contributions related to the study's focus. Findings indicate that gold hibah can be used alongside other forms of hibah, without disregarding the importance of faraid and waqf (Islamic endowment). One key challenge in applying hibah to gold assets lies in the willingness of individuals to transfer ownership of gold to loved ones in advance or to legally prepare valid hibah trust documentation during their lifetime—without waiting for the gold to become part of their estate. As this is an exploratory study, it is recommended that future research should be conducted in more depth, involving direct field data collection. This would allow the study to move beyond theoretical and empirical discussions and become practically applicable, supported by sound knowledge within society. It is hoped that this research serves as an initial guide for future studies on the use of hibah as a wealth distribution instrument in the form of gold.