The Ruling on Zakah in Money Held in Trust

Question:
If a person has money that does not belong to him, but is merely a trust, or one-third of a deceased person’s estate, and a lunar year has passed over it, does he pay zakah on it?

Answer:
If it is a bequest from the deceased’s one-third or a waqf (endowment), there is no zakah in it. If it is a trust held by him for someone else, he does not pay zakah on it; the owner who entrusted it to him is the one who pays zakah. However, if the owner appoints him as an agent and says, “Pay the zakah,” then there is no harm in him doing so if he is appointed as an agent. Otherwise, he does not dispose of it; he preserves the trust. There is no objection to him advising the owner and saying to him, “Pay the zakah on it, or give me permission to pay the zakah on it.” Otherwise, he does not pay it out except by order from the owner of the money and his appointment as an agent.
As for endowments and bequests made by the deceased intending good, there is no zakah in these.