FatwaFederal TerritoriesInheritance, Wills & Gifts
AL-KAFI #1637: MENGGUNAKAN WANG KWSP UNTUK MELUNASKAN HUTANG ARWAH
Can a widow use her late husband's EPF money to settle his car debt and assume the car becomes hers?
Short answer
EPF money remains part of the deceased's estate and the nominee acts only as an administrator, so it may be used to settle the deceased's debts, including a car loan.
A reference, not a fatwa. First sentence of the summary below — read the original fatwa and consult your state authority before acting.
- Authority
- Federal Territories Mufti Office
- Date
- Status
- Opinion (irsyad)
- Series
- Al-Kafi li al-Fatawi
- Topic
- Inheritance, Wills & Gifts
No evidence of gazettement in the source — this is not a gazetted fatwa.
Summary
EPF money remains part of the deceased's estate and the nominee acts only as an administrator, so it may be used to settle the deceased's debts, including a car loan. However, the belief that the car becomes the wife's by paying off the debt is not correct. The car remains part of the estate and is divided under faraid among heirs such as the parents and children, unless it was gifted and the registration transferred to her name during his lifetime. Full ownership is possible only if the other heirs waive their rights for free or release them after receiving payment for their shares.
Written in our own words from the original fatwa — check the source before acting on it.
Memandangkan duit KWSP dianggap sebagai harta arwah, maka tidak menjadi masalah kepada ahli waris khususnya penama untuk menggunakan duit tersebut bagi menyelesaikan segala hutang-piutang arwah termasuklah hutang kereta.
Read the full fatwa on the Federal Territories website (new tab)
How to cite
Cite the original fatwa and its authority. Rujuk Fatwa is only where you found it.
Federal Territories Mufti Office. “AL-KAFI #1637: MENGGUNAKAN WANG KWSP UNTUK MELUNASKAN HUTANG ARWAH”, 2 March 2020. https://muftiwp.gov.my/ms/artikel/al-kafi-li-al-fatawi/4261-al-kafi-1637-menggunakan-wang-kwsp-untuk-melunaskan-hutang-arwah. Found via Rujuk Fatwa: https://rujukfatwa.com/en/fatwa/using-epf-money-to-settle-deceased-debt/