Question
Dad passed away May 2013
Mum passed away Apr 2021
There was some gold (jewellery pieces) in a box, belonging to many people. Ownerships were not clarified for a few years (happened on various dates over years). It went through various processes, including stone removal, melting and assay, on different dates. Some delays due to covid. Everything was sold in jan 2023. Most of it was in safe keeping of the inheritors at various points. Some of it was in the possession of a non-inheritor in India until 2017/18. Some items were found a few years later in the UK.
From which date do the inheritors need to give Zakat (e.g. 2013, when ownership clarified, sold, etc.)?
Is Zakat on this gold from Jul 2014 (after having the money for 1 year) or Jul 2013 (less than 1 year)? I.e. is zakat due a year after the inheritors have had it in possession or is it due at the Zakats first due date (of each inheritor)?
Is Zakat due on the full amount, or after deducting previous year’s zakat, each year? E.g. on £100 in year 1, then on £97.50 in year 2, etc.
Some of it was in the possession of a non-inheritor in India until 2017/18. Some items were found a few years later in the UK. Is zakat due on these from day 1, or later (e.g. when brought back from India, or found)?
I (as executor) calculated zakat for Dad after he passed away, for the years before (as he was unwell). It was overpaid (deducted from his estate), because the gold weight was substantially overestimated (we didn’t know the actual gold weight and content until 2022).
Am I liable to repay the inheritors (as it was my calculation)?
Can I change the intention of the overpayment to my own zakat?
Mum had a bank account in India which wasn’t used for many years. We had tried to get access to it but couldn’t without Mum having to go India (not possible due to health). In 2022 we paid an Indian agent to sort access to the account. Of 92,000 rupees, 21,148 was clean money (rest was interest). The agent charged 20,000 rupees, leaving only 1148 rupees. At the end, the account was closed and we received a cheque for the balance (Sep 22). Zakat was probably paid until Dad passed away.
What amount do the inheritors need to pay zakat on?
From what date (ref number 1a)?
Some of the inheritance money was in an Indian Bank account, which can’t officially be transferred to UK (legally). The money was used when I went to India, many years later, and took the cash out.
From what date is zakat due on this money (see 1a)?
Mum and sister jointly owned a house. A few months after Mum passed away, we agreed that my sister would keep the house. However, she didn’t have the funds to pay for it, so she owes money to the estate (effectively, the brothers). Mum’s will specified one third of the estate to be donated as Sadaqah. As the house couldn’t be cashed, I paid part of this sadaqah element, so I am owed money from the estate (effectively, a loan from me to my sister).
Is the money owed to me subject to zakat?
If so, from what date (when mum passed away, when house agreed, or other)?
With some of the money, there was a delay (for various reasons) with sharing it out, so held for safekeeping by myself. It was usually due to establishing ownership or calculations.
What date is zakat due on the inheritors from (when the money was available, ownership established, or when shared)?
Dad owned shares in 6 Indian companies. We have spent years trying to get the shares transferred to the executors. Only 2 sets have so far been transferred, of which the majority has not been sold because of difficulties with getting access to the money. Some have been sold but are stuck in somebody else’s bank account (I will need to go to India, sort out the figures, and get the cash). We are still struggling to get hold of the other 4 sets because the companies keep asking for documents/clarifications. It is not guaranteed that we will get these shares.
From what point is Zakat due on the inheritors? From day 1, when transferred, when sold, or when we get the money in the UK?
Is zakat due on the 4 sets of shares which are still outstanding (we won’t know the value until sold, as prices fluctuate)?
Answer
From which date do the inheritors need to give Zakat (e.g. 2013, when ownership clarified, sold, etc?)
Answer: Inheritors will pay zakat once they become aware of their share and have taken possession. Once they have access to their share that will be considered as taking possession.
Is Zakat on this gold from Jul 2014 (after having the money for 1 year) or Jul 2013 (less than 1 year)? I.e. is zakat due a year after the inheritors have had it in possession or is it due at the Zakats first due date (of each inheritor)?
Answer: Zakat will be due at the individual’s next zakat anniversary. Hence, if the gold was received in January and the inheritors zakat date is on 1st March then zakat of that gold will be paid on 1st March. For clarification on what a zakat date is please see the following video:
Is Zakat due on the full amount, or after deducting previous year’s zakat, each year? E.g. on £100 in year 1, then on £97.50 in year 2, etc.
Answer: Zakat is paid on the full sum each year. A person will only deduct the previous year’s zakat if they have not paid it yet. For example, if they had £1000 in year one and they did not pay zakat and in year two they still had £1000, they will first deduct £25, which is the zakat they owe for year one, and then pay zakat on £975.
Some of it was in the possession of a non-inheritor in India until 2017/18. Some items were found a few years later in the UK. Is zakat due on these from day 1, or later (e.g. when brought back from India, or found)?
Answer: As mentioned under the first answer zakat is only payable on inheritance after the inheritor has gained access to their share. Prior to this the estate is not zakatable.
I (as executor) calculated zakat for Dad after he passed away, for the years before (as he was unwell). It was overpaid (deducted from his estate), because the gold weight was substantially overestimated (we didn’t know the actual gold weight and content until 2022). Am I liable to repay the inheritors (as it was my calculation)? Can I change the intention of the overpayment to my own zakat?
Answer: The excess money you gave as zakat from your father’s estate belonged to the inheritors. Therefore, you will have to inform the inheritors of the situation. They may choose to forgive you or demand the money from you.
Once the money is given to the poor with the intention of zakat, one cannot later change their intention in order for it to be for someone else.
Mum had a bank account in India which wasn’t used for many years. We had tried to get access to it but couldn’t without Mum having to go India (not possible due to health). In 2022 we paid an Indian agent to sort access to the account. Of 92,000 rupees, 21,148 was clean money (rest was interest). The agent charged 20,000 rupees, leaving only 1148 rupees. At the end, the account was closed and we received a cheque for the balance (Sep 22). Zakat was probably paid until Dad passed away. What amount do the inheritors need to pay zakat on? From what date (ref number 1a)?
The amount left by your mother in her account belongs to the inheritors immediately upon her passing away. Hence, there is no separate zakat upon the amount itself. However, it would be advised that the inheritors pay any outstanding zakat owed by your mother in order to absolve her of her obligation.
Some of the inheritance money was in an Indian Bank account, which can’t officially be transferred to UK (legally). The money was used when I went to India, many years later, and took the cash out. From what date is zakat due on this money (see 1a)?
Answer: Again, as mentioned above the inheritors will only pay zakat once they have received their share of inheritance. Hence, once you accessed the money you would pay zakat on it at your next zakat date if the wealth is still there and not spent.
Mum and sister jointly owned a house. A few months after Mum passed away, we agreed that my sister would keep the house. However, she didn’t have the funds to pay for it, so she owes money to the estate (effectively, the brothers). Mum’s will specified one third of the estate to be donated as Sadaqah. As the house couldn’t be cashed, I paid part of this sadaqah element, so I am owed money from the estate (effectively, a loan from me to my sister). Is the money owed to me subject to zakat? If so, from what date (when mum passed away, when house agreed, or other)?
Answer: If you made an agreement with your sister and made the payment on her behalf this would be considered a loan to her. As this is a loan to your sister, you will have to pay zakat on that loaned amount at your next zakat date.
With some of the money, there was a delay (for various reasons) with sharing it out, so held for safekeeping by myself. It was usually due to establishing ownership or calculations.
What date is zakat due on the inheritors from (when the money was available, ownership established, or when shared)?
Answer: Zakat is payable on inheritance once inheritors have access to their share.
From what point is Zakat due on the inheritors? From day 1, when transferred, when sold, or when we get the money in the UK?
Answer: When the inheritors have access to this wealth. This will most likely be when the money is transferred to the UK.
Is zakat due on the 4 sets of shares which are still outstanding (we won’t know the value until sold, as prices fluctuate)?
Answer: Not until the inheritors are aware of their exact share and have access to the money.
In summary, the estate of the deceased belongs to the rightful inheritors immediately upon death. There is no separate zakat owed upon the inheritance money itself but every inheritor should give zakat upon reaching their own individual zakat date when due. Also, the inheritor does not have to give zakat on the amount they are to receive from inheritance until it is in their possession, for example it is in their bank account. For instance, Ahmad passes away with £10,000 in his estate. Khalid is to inherit £6000 from that. Khalid’s zakat is due on the 1st Muharram (as determined from before). He will not have to give zakat on that £6000 when the 1st Muharram enters if he has not yet received the inheritance amount. If he does receive the £6000 by the 1st of Muharram he will add that to his entire zakatable assets and give zakat accordingly. Lastly, if an individual does not give zakat for that year, it will remain a debt upon them. If they possessed £1000 on their zakat due date and did not give zakat, and a year on from then, by their next zakat date they also had £1000, they will give zakat on £975 as £25 of that is a debt owed as zakat from before.
مراقي الفلاح شرح نور الإيضاح (ص: 271) وزكاة الدين على أقسام فإنه قوي ووسط وضعيف.
فالقوي: وهو بدل القرض ومال التجارة إذا قبضه وكان على مقر ولو مفلسا أو على جاحد عليه بينة زكاة لما مضى ويتراخى وجوب الأداء إلى أن يقبض أربعين درهما ففيها درهم لأن ما دون الخمس من النصاب عفو لا زكاة فيه وكذا فيما زاد بحسابه.
والوسط: وهو بدل ما ليس للتجارة كثمن ثياب البذلة وعبد الخدمة ودار السكنى لا تجب فيه الزكاة فيه ما لم يقبض نصابا ويعتبر لما مضى من الحول من وقت لزومه لذمة المشتري في صحيح الرواية.
والضعيف: وهو بدل ما ليس بمال كالمهر والوصية وبدل الخلع والصلح عن دم العمد والدية وبدل الكتابة والسعاية لا تجب فيه الزكاة ما لم يقبض نصابا ويحول عليه الحول بعد القبض وهذا عند الإمام وأوجبا عن المقبوض من الديون الثلاثة بحسابه مطلقا.
Answered by:
Ifta Research Fellow
Checked & Approved by:
Mufti Abdul Rahman Mangera
Mufti Zubair Patel