My wife and her sisters together with her brother recently inherited shares in their late fathers business.
The 4 sisters decided to sell their shares to their Brother for an amount of R400000.00 per sister so in Total R1.6million.
The brother does not have any cash to pay this amount upfront so he has agreed to pay this amount off within 3years In-Sha-Allah. This deal was done during Ramadaan
My wife’s zakaat date is now this month so we wanting to calculate her zakaat.
To the best of my understanding she has to add whatever amounts are owed to her into the calculation which would include the R400000.00 owed to her for the business share.
Problem is she has not received any payment from that sale of share as yet and she does not have sufficient cash to cover the zakaat amount which is about R10000.00.
What other option does she have for this year and going forward for the next years until everything is paid?
From my understanding you add any amount owed to you to your zakaatable assets, but in a case like this where they haven’t received anything and the amount is to be paid over a few years how should zakaat be calculated and paid?
We got three opionions from within the family…
1) Full zakaat must be paid every year with Full outstanding amount added to zakaatable assests;
2) She must take the total amount owed(app R400000.00) divide by the number of years that has been agreed to be paid back(in this case 3yrs) and then only pay every year on that specific year’s amount;
3) She must pay on what she received in the 1st year but then in the 2nd year whatever amount is received, she can pay for year 1 and 2, and then in year 3 whatever she received, she can pay for year 1, 2 and 3.
Please advise if either of these is correct or is there some other method.