Pri-Hibah (Declaration of Hibah)
Advantages of creatingPri-Hibah
The Pri-Hibah asset is not considered part of Settlor’s estate (as it takes effect immediately according to the terms and conditions in the Declaration of Hibah) and consequently is outside the Faraid distribution rules. It can therefore be used to balance distribution.
The settlor has the power to revoke the Hibah (if the gift is from parent to child)
The settlor can be sure that the intended beneficiaries are taken care of even upon his incapacity, not solely on death.
The settlor continues to enjoy part of the benefits of the Pri-Hibah asset while he is alive and can appoint a protector to safeguard minors’ interests.