Is zakat obligatory on compensation money that was endowed for two orphan girls, and if it is obligatory, is it permissible to spend from it on the two poor orphan girls?
Scholars have differed on the obligation of zakat on the orphan's wealth, with the majority affirming its obligation. Compensation money is considered an inheritance, where the wife receives one-eighth, the two daughters two-thirds, and the remainder goes to the residuary heir. Zakat becomes obligatory for anyone whose share reaches the nisab and a full year (hawl) has passed on it. Zakat is not given back to the one from whom it was taken. Instead, it can be given to other poor or needy heirs. For example, the zakat of one daughter can be given to the other. However, it cannot be given by the mother or one of them to the other if there is an obligation of maintenance.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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