What is the ruling on a waqf (endowment) that its owners no longer need? And is there zakah due on the money collected from it?
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The questioner : Shaykh, may Allah reward you: A man passed away, and before his death he endowed a house and wrote a will stating that the proceeds from selling this endowment should be for the needy among his children, for his 'Id al-Adha sacrifice, and for the maintenance of the house. Now, the children no longer need the income from this endowment, and its income exceeds the cost of the sacrifice and the maintenance. The question now is: Is there zakah due on the money collected from this endowment? And what should be done with the remainder?
The Shaykh : As for the answer to this question, in reality, I am unable to answer until I look at the document, because there may be a word in the document that changes the meaning we have understood so far.
The questioner : The document, do you see, I know it, and my father mentioned: that it is for the needy, for the maintenance of the endowment, and for the 'Id al-Adha sacrifice...
The Shaykh : Well, if it is for the needy, for the 'Id al-Adha sacrifice, and for the maintenance of the endowment, the common practice is that people say: prioritize the maintenance of the endowment, this is the common practice, then the 'Id al-Adha sacrifice, then the needy among the descendants or the relatives. There is no group of people, or clan, or tribe that does not have needy people. So it is spent either on the descendants if they are in need, or on other relatives.
The questioner : What if the will did not specify these people?
The Shaykh : Yes, yes, even if it did not specify this, and it is not permissible for the money to remain restricted.
The questioner : And is there zakah due on it...?
The Shaykh : There is no zakah due on it as long as the beneficiaries do not own it.
The questioner : If it is preserved, there is no zakah due on it.
The Shaykh : There is no zakah due on it because it has no owner, because these people do not have a right to it as long as the entitlement is conditional on need, and they are not in need, so they do not have a right to it and do not own it. In that case, it is money that has no owner, and one of the conditions for the obligation of zakah is that the money has an owner. But as I told you, I do not think you should hold it back; I think it should be spent in a direction of good, so that the deceased may benefit from it, and so that it does not become subject to loss in the future.
The questioner : We are afraid of deviating from the text of the will.
The Shaykh : It does no harm as long as the specified beneficiaries do not need it, and it is conditional on need, it can be spent in other channels.
The Shaykh : As for the answer to this question, in reality, I am unable to answer until I look at the document, because there may be a word in the document that changes the meaning we have understood so far.
The questioner : The document, do you see, I know it, and my father mentioned: that it is for the needy, for the maintenance of the endowment, and for the 'Id al-Adha sacrifice...
The Shaykh : Well, if it is for the needy, for the 'Id al-Adha sacrifice, and for the maintenance of the endowment, the common practice is that people say: prioritize the maintenance of the endowment, this is the common practice, then the 'Id al-Adha sacrifice, then the needy among the descendants or the relatives. There is no group of people, or clan, or tribe that does not have needy people. So it is spent either on the descendants if they are in need, or on other relatives.
The questioner : What if the will did not specify these people?
The Shaykh : Yes, yes, even if it did not specify this, and it is not permissible for the money to remain restricted.
The questioner : And is there zakah due on it...?
The Shaykh : There is no zakah due on it as long as the beneficiaries do not own it.
The questioner : If it is preserved, there is no zakah due on it.
The Shaykh : There is no zakah due on it because it has no owner, because these people do not have a right to it as long as the entitlement is conditional on need, and they are not in need, so they do not have a right to it and do not own it. In that case, it is money that has no owner, and one of the conditions for the obligation of zakah is that the money has an owner. But as I told you, I do not think you should hold it back; I think it should be spent in a direction of good, so that the deceased may benefit from it, and so that it does not become subject to loss in the future.
The questioner : We are afraid of deviating from the text of the will.
The Shaykh : It does no harm as long as the specified beneficiaries do not need it, and it is conditional on need, it can be spent in other channels.