Allah (SWT) created our spirits before creating our bodies as we read in Hadeeths. Our spirit will leave our body when we leave this world in death. No question of incarnation at all. Every spirit is for the same person and will ever go into another persons body. Allah (SWT) does not lack ability to create spirits for every creature and does not need to incarnate a soul or spirit into another person or creature. It is also against justice to believe in incarnation because it amounts on imposing behavior of a person on another person.
The Hadeeth says: Allah has created the spirits f people two thousand years before He created their bodies.
The spirits were living where ever Allah has made them to live. We believe in The World of Thar where all people were created but not in their bodies but before that.
Thank you for your question. The soul is immortal meaning that it will not be taken out of existence once Allah has brought it into existence. Death is not the annihilation of the soul but rather its transition from one plane to another. Allah has promised an eternity of bliss in heaven for those that follow His guidance and such a reward is only possible if the soul is immortal.
Soul is not immoral at all. There are three types of souls mentioned in Quran;
1. Al-Nafs Al-Ammarah which trends towards bad desires. This Nafs is to be avoided when it instigates towards bad. Allah (SWT) provided man with intellect (Aql) or reason to tackle the bad temptation. ونهى النفس عن الهوى فان الجنة هي المأوى
2. Al-Nafs Allawaamah which blames the person when and after doing bad to rectify him.
3. Al-Nafs Al-Mutma'innah which is in full peace and tranquility because of the high state of Imaan.
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