Creating a Halal Family Trust in Illinois To Avoid Riba and Probate

 Posted on October 09, 2025 in Family Law

For Muslim families in Illinois, estate planning is about more than money. It is also about following Islamic principles while protecting loved ones. A halal family trust can help you do both. With the right plan, your trust can prevent riba (interest-based gains) and avoid the probate process. It can also make sure your assets are shared fairly according to Islamic values. Our Oakbrook Terrace, IL Islamic estate planning lawyers can help you create a trust that meets both state and religious requirements.

What Makes a Family Trust Halal?

A family trust is a legal arrangement that allows you to manage your assets while you are alive. After you pass away, it ensures those assets are transferred to the people you choose. To make a trust halal, it must follow both Illinois and Shariah law. This means it should not earn or pay interest and must be managed honestly and responsibly (amanah). It should also divide assets according to Islamic inheritance rules (mirath).

Illinois law allows private trusts as long as they meet basic requirements for intent, property, and purpose under the Illinois Trust Code. This means you can include faith-based instructions in your trust while keeping it valid under state law.

Avoiding Riba in Your Family Trust

Many traditional investment accounts and bank products involve interest. This is something you have to carefully consider when creating a family trust. To keep your trust halal, your trustee should work with advisors who understand Islamic finance and use investments that follow Shariah guidelines. For example, a halal trust should not use savings accounts or bonds that earn interest. Instead, it can invest in Islamic mutual funds, real estate, or shared business profits. These options allow your wealth to grow while following your faith.

How a Family Trust Helps To Avoid Probate in Illinois

Probate is the court process that is used to transfer someone’s assets after they pass away. It can take months, cost money, and make private family matters public. Under the Illinois Probate Act, most estates that do not have a trust must go through probate.

A revocable living trust can help your family avoid this. When you place property into the trust, it can be given directly to your heirs after your death without court involvement. This saves time, reduces stress, and protects your privacy. It also allows quicker handling of funeral costs, charitable giving, or sadaqah jariyah.

Who Should Be the Trustee of a Halal Family Trust?

A trustee is the person or company that manages your trust. Under 760 ILCS 3/801, Illinois law says trustees must manage the trust in good faith and in accordance with its terms. That includes respecting the grantor’s religious choices. A good trustee for a halal trust should:

• Know about halal investment practices

• Be trustworthy and financially responsible

• Be open to getting advice from Islamic scholars if needed

Some families choose co-trustees, with one responsible for handling the finances and the other chosen for their understanding of Islamic law. This helps ensure that both faith-based and legal duties are met.

Contact a DuPage County, IL Islamic Estate Planning Attorney

Every family’s needs are different. To ensure that yours are met, get help from someone who understands both Illinois law and Islamic principles.

Attorneys Naveed S. Husain and Ausaf Farooqi use their legal experience and deep knowledge of Islamic law to guide Muslim families throughout Chicago. They help clients bridge the gap between faith and law so their estate plans meet both spiritual and legal goals. Call Farooqi & Husain Law Office today at 630-909-9114 to speak to an experienced Oakbrook Terrace, IL Islamic estate planning lawyer about creating your halal family trust.