Hissa Amad (Income)
How is Wasiyyat paid on investments such as stocks, ETFs and other business ventures?
When a Musi invests in stocks, ETFs or any other business venture, Hissa Amad is payable on the profit realized from that investment, if any.
For example, if a Musi purchases stocks, ETFs or precious metals like gold, silver worth $10,000 and later sells them for $15,000, Hissa Amad is payable on the profit of $5,000.
Similarly, if a Musi invests $50,000 in a house-flipping business, remodels the house and sells it at a net profit of $20,000, Hissa Amad is payable on that $20,000 profit.
If, however, the Musi passes away while still holding the investment, its value forms part of his or her Tarka, on which Hissa Jaidad is payable.