Apr 29, 2013

Posted by in Q & A, Zakāt | 0 Comments

Do Children pay Zakaat over their wealth

Do Children pay Zakaat over their wealth

Question:

  • Is it true that if i share my gold amongst my kids n keep for them i dnt hav to pay zakaat til they reach puberty. Also that im not allowed to use then.
  • I hav gold fm my previous marriage/divorce and hav kept that for my eldest daughter. Do i hav to pay zakaat on that? Shes reached puberty?
  • Can husband help to pay? As i only work 12 hrs per week?
  • How can i get all this calculated? Jzk

Answer:

In the name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

  1. In principle, Zakat becomes wajib on a person only after he attains puberty. Hence if you gift your gold to your children who are not baligh as yet, then the zakat will not be wajib on them. However, the gold would be their possession and you will not have the right to use it against their well being. [i] At the same time, it must be noted that Zakah is a process of cleansing filth from one’s wealth. To find loop-holes to avoid paying out is just like making justification to keep dirt and filth in one’s home.
  2. As long as the gold is in your possession, and it reaches the level of nisaab, then you will have to pay out Zakat on it. Merely having intention to give it to your daughter is not sufficient to not pay Zakat on it. If you give it to your daughter as a gift, then she will be owner of that gold, and if the gold reaches the level of nisaab, then she will have to pay the zakah out on that gold.
  3. Yes, the husband may help and pay the zakat. However, this is his voluntary action and he will be rewarded for that. In such a case, the payment will be regarded as though the husband gave a gift to the wife, and then the zakat was paid with that money.
  4. Mufti Yusuf bin Yaqub Saheb has explained the calculation of Zakat in simplistic terms. Please see below:

Calculating Zakah:

Zakāh will become compulsory on a sane and mature Muslim when his / her wealth exceeds the Nisāb and this amount of wealth is maintained for the duration of one entire lunar year.The Nisāb is 20 Mithqals (87.479 g) for gold and 200 Dirhams (612.35 g) for silver.

Any currency equal to the amount of any of these Nisābs will also render Zakāh binding.

For example, if the price of silver is quoted at R4.40 per gram then the Nisāb will equal approximately R2, 702. If one’s wealth decreases below the Nisāb during the year but before the expiry of the year, it reaches the Nisāb, Zakāh will be binding contrary to the case of the wealth not rebounding to amount of Nisāb upon the expiry of the year.

However, if one loses his entire wealth, a new lunar cycle will begin after reaching the Nisāb for the second time.

All debts and liabilities will be deducted from his wealth before calculating his estate. Only that particular year’s liabilities will be deducted from long-term debts such as car / home financing. Loans given and other receivables into one’s estate will be accounted for even if the person is not paid by his debtor for several years.

Any gold or silver items such as jewelry, ornaments etc will also form part of Zakatable assets. If the percentage of gold or silver in the item is more than the metal alloy with which it is amalgamated the entire item will be considered as gold or silver. If the percentage of alloy is greater, if there is enough gold or silver where it is possible for it to be extracted, then Zakāh will be compulsory only on the value of the gold or silver therein and not on the entire item if the Nisāb is reached.

Similarly, any items purchased for trade will be subject to Zakāh and must be accounted for in the calculation. A person should add his / her cash savings, values of gold and/or silver, value of the merchandise of trade and any receivables from debts etc. Thereafter, he / she should deduct the amount of debts owed to others.

If the value of the net total equals the Nisāb of gold or silver, he / she will have to pay 2.5% of the amount in Zakāh. Hereunder is a brief chart illustrating the calculation of Zakāh:

Personal Wealth

Amounts:

1.   Amount of Cash and Savings at home or in the bank R 10,000
2.   Current value of any gold and silver jewelry, coins, utensils etc R 5,000
3.   Value of  assets and merchandise for trade R 20,000
4.   Receivables and loaned amounts to others R 5,000
Total these amounts here: R 40,000
Amount Debts to be paid: R 20,000
Subtract the total amount of debts for the year from the above amount.
Nett Total of Zakatable Wealth R 20,000
if the net total of Zakatable Wealth is more than the Nisab amount then…  

Multiply the nett total by 2.5% (nett amount x 0.025)

R 500

 

And Allah Ta’āla Knows Best
Mufti Faisal bin Abdul Hameed[1]

Checked and concurred by

Mufti Luqman Hansrot
Fatwa Dept.

www.efiqh.com

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[1] Canada, Montreal
www.fatwa.ca

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