Zakat on lifetime estate distribution
| Fatwa #1446 | Category: Zakaat & Sadaqah | Country: | Date: 16th April 2025 |
| Fatwa #1446 | Date: 16th April 2025 |
| Category: Zakaat & Sadaqah | |
| Country: | |
Question
I have a query which I’ll put it ina scenario form. InshaAllah like that it will be understood better.
Abu Bakr’s father Umar is alive. And Abu Bakr has 1 sister, and 2 brothers.
Whilst the father (Umar) is alive, Abu Bakr was given the responsibility to distribute the wealth of Umar to all the siblings in the presence of the father Umar.
Abu Bakr gave the sister her share,
But for the other two brothers, Abu Bakr used their money in an investment. And has to return them their share now.
Umar the father is still alive also now.
So the question is. Abu Bakr is owing the two brother’s their share. So will the two brother’s remove Zakaat from their share which is expected to reach them soon?
Answer
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
In principle, an estate distribution within ones lifetime is considered to be a gift from the parent to his children. Therefore, assuming the prerequisites of gifting are fulfilled, such that transfer of ownership from the parent to the children has occurred, and possession has been taken by the children, the gift will be valid.
Assuming Abu Bakr used his brothers shares with their consent,
- If he simply used their money, without them receiving any share of profits, then this shall be treated as a loan, as such, the two brothers shall have to pay zakat on the debt/loan receivable.
- If he was using the money for an investment with returns to be paid out to the brothers as well, then zakat will still be due, however, the amount on which zakat is due will be dependent on the type of investment entered into.
Kindly revert to us with further details regarding the nature of investment if it is applicable to the situation at hand.
And Allah Ta’āla Knows Best
Mufti Bilal Pandor
Concurred by
Mufti Muhammad Patel
Darul Iftaa Mahmudiyyah
Lusaka, Zambia