Is the amount of Zakat allocated to a person who passed away before receiving it considered part of the inheritance that must be handed over to their family, or is it permissible to disburse it to another family deserving of Zakat?

The association acts as an agent for the zakat payer in delivering zakat to its rightful recipients, and not as an agent for the zakat recipient in collecting it. Therefore, if the association disburses this amount to any legitimate charitable cause or to any other deserving recipient, there is no harm in that. This amount is not considered an inheritance for the family of the first deserving individual because a poor person does not own zakat until they take possession of it. If it is destroyed before possession, it remains under the guarantor-ship of the zakat payer.