I lent my father a sum of money that exceeds the Nisaab. I used to send him a certain sum every month for two years on the basis that I would get it back by taking a piece of land or house from his possessions in consideration of this borrowed money. Should I pay Zakaah for this money?
All perfect praise be to Allaah, The Lord of the worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad , is His slave and messenger.
This money that you lent to your father follows the same ruling of debt. Our opinion is that Zakah is obligatory on debts at the beginning of every lunar year or the lender may delay paying Zakah for the debt till he receives the money, so he pays the Zakah for the previous years.
The fact that you intend to take from your father some of his possessions in consideration of this money does not release you from the obligation of paying Zakah for it. The money in the possession of your father is eligible for Zakah. If you agree with him upon taking an item that is not eligible for Zakah from his possessions, then you should not pay Zakah in the coming years. Concerning the previous years, their Zakah is obligatory upon you because it remained your liability by the end of the lunar year. The debt of Allaah The Almighty is more worthy to be paid.
Allaah Knows best.
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