Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh. (May Allah's Peace, Mercy and Blessings be upon all of you)

One of our brothers/sisters has asked this question:

SALAMS BROTHER.

CAN U GIVE ME A SIMPLE & BASIC ZAKAT PAYMENTS TO BE MADE FROM PROPERTY & CASH IN HAND AND PROFITS FROM A FACTORY.

ALSO WHAT ABOUT A WILL IN ISLAM.? ARE WE ALLOWED TO WRITE A WILL

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Answer:

Zakah and will

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is none worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.

Your Question: ….CAN U GIVE ME A SIMPLE & BASIC ZAKAT PAYMENTS TO BE MADE FROM

PROPERTY & CASH IN HAND AND PROFITS FROM A FACTORY.

If the total net worth of any believer (man, woman, or child) is more than the prescribed ‘nisaab’ of 7.5 tolas of gold (app. 85 grams or app. Value US$2,100.00), then the person is liable to pay the obligatory zakat of 2.5% on their excess wealth which has been in their possession for a full calendar year.

For the purpose of determining ‘zakah’, the ‘Net Excess Assets’ would be the current market value of all of one’s assets (properties, investments, jewelry, cash, etc.) except:

1. the value of the house one owns and actually lives in
2. the value of the car/vehicle one uses on a regular basis
3. the value of the furniture and fixtures one uses on a regular basis.

Your Question: ….AND PROFITS FROM A FACTORY.

Respected brother, ‘zakah’ in Islam is not due from one’s annual income or the yearly profit one generates (or does not generate)….but rather ‘zakah’ is due on the net ‘excess’ wealth of every believer after it has been in their possession for a period of one year.

Thus say one has a factory worth 100,000.00, goods in the factory worth 50,000.00, and liabilities (or accounts payable) are 25,000.00. Irrespective of whether the factory makes a yearly profit or a loss, the one who owns the factory would be liable to pay ‘zakah’ on 100,000 + 50,000 – 25,000 = 125,000.00 at the rate of 2.50%.

Your Question: ALSO WHAT ABOUT A WILL IN ISLAM.? ARE WE ALLOWED TO WRITE A WILL

One is well within one’s rights in Shariah to write or dictate a ‘will’ before their death if they wish to do so, but a few basic guidelines must be honored:

1. Because the exact shares of each of one’s legal heirs are prescribed by Allah Subhanah, one cannot add or subtract or bequeath any property to their legal heirs in their ‘will’.
2. One is at absolute liberty to bequeath upto a maximum of 1/3^rd of their property to any person or institution one wills and pleases, except one’s legal heirs.

Malik related from Ibn Shihab from Amir ibn Sad ibn Abi Waqqas that his father said, "The Messenger of Allah (saws) came to me to treat me for a pain which became hard to bear in the year of the farewell hajj. I said, 'O Messenger of Allah (saws), you can see how far the pain has reached me. I have property and only my daughter inherits from me. Shall I give two thirds of my property as ‘sadaqa’?' The Messenger of Allah (saws) said, 'No.' I asked 'Half?' He (saws) said, 'No.' Then the Messenger of Allah (saws) said, 'A third, and a third is a lot.’”

After one’s death, first and foremost the ‘will’ of the deceased will be determined, then the outstanding debts of the deceased will be honored, and then the rest of the wealth of the deceased will be shared by the legal heirs as prescribed by Shariah.

Allah Says in the Holy Quran Chapter 2 Surah Baqarah verses 11-14:

11 Allah (thus) directs you as regards your children's (inheritance): to the male a portion equal to that of two females: if only daughters two or more their share is two-thirds of the inheritance; if only one her share is a half. For parents a sixth share of the inheritance to each if the deceased left children; if no children and the parents are the (only) heirs the mother has a third; if the deceased left brothers (or sisters) the mother has a sixth. (The distribution in all cases is) after the payment of legacies and debts. Ye know not whether your parents or your children are nearest to you in benefit. These are settled portions ordained by Allah and Allah is All-Knowing All-Wise.

12 In what your wives leave your share is a half if they leave no child; but if they leave a child ye get a fourth; after payment of legacies and debts. In what ye leave their share is a fourth if ye leave no child; but if ye leave a child they get an eighth; after payment of legacies and debts. If the man or woman whose inheritance is in question has left neither ascendants nor descendants but has left a brother or a sister each one of the two gets a sixth; but if more than two they share in a third; after payment of legacies and debts; so that no loss is caused (to anyone). Thus is it ordained by Allah and Allah is All-Knowing Most Forbearing.

13 Those are limits set by Allah: those who obey Allah and His Messenger will be admitted to Gardens with rivers flowing beneath to abide therein (for ever) and that will be the Supreme achievement.

14 But those who disobey Allah and His Messenger, and transgress His limits will be admitted to a Fire to abide therein: and they shall have a humiliating punishment.

Thus for example say the deceased was worth 100 at the time of his death, had a debt payable of 40, and the deceased made a will to bequeath 1/3^rd of this wealth to charity…..in such a situation the distribution of the wealth of the deceased according to Shariah will be as follows:

1. 1/3^rd or 33.33 will be paid to charity as per the deceased’s will.
2. 40 will be paid to clear the outstanding debts of the deceased.
3. The balance (100-33.33-40) or 26.67 will be distributed amongst the legal heirs of the deceased.

Whatever written of Truth and benefit is only due to Allah’s Assistance and Guidance, and whatever of error is of me alone. Allah Alone Knows Best and He is the Only Source of Strength.

Your brother and well wisher in Islam,

Burhan