Is it permissible for him to divide his wealth among his heirs when he is still alive?

Question

Praise be to Allah.

Yes, that is permissible subject to conditions, unless he
intends thereby to harm some of his heirs, such as withholding from some or
giving them less than they are entitled to in order to harm them.

Allaah Himself has stated how the inheritance is to be
shared, and He has issued a warning against ignoring this division. He says
(interpretation of the meaning):

“These are the limits (set by) Allaah (or ordainments as
regards laws of inheritance), and whosoever obeys Allaah and His Messenger
(Muhammad) will be admitted to Gardens under which rivers flow (in
Paradise), to abide therein, and that will be the great success.

14. And whosoever disobeys Allaah and His Messenger
(Muhammad), and transgresses His limits, He will cast him into the Fire, to
abide therein; and he shall have a disgraceful torment”

[al-Nisa’ 4:13, 14]

But it is better not to do that. Rather he should keep his
wealth with him, then when he dies it should be distributed among the heirs
who are present at the time of death, according to the manner outlined in
sharee’ah. No one knows who is going to die first so that he might share his
wealth among his heirs. He may live for a long time and need this money.

It says in al-Insaaf (7/142): It is not makrooh for a
living person to share out his wealth among his heirs, according to the
correct view. And it was narrated from him (i.e., Imam Ahmad, in another
report) that this is makrooh. It says in al-Ri’aayah al-Kubra: It is
makrooh for anyone to divide his wealth among his heirs when he is still
alive, if it is possible that he may have another child. End quote.

It says in Fataawa al-Lajnah al-Daa’imah (16/463): We
advise your father not to divide his wealth when he is still alive, for he
may need it after that. End quote.

And Allaah knows best.