Zakat on Inheritance
Zakat is not due on inherited money immediately. It is due after the inherited wealth has been in your possession for one full lunar year (the Hawl) at or above the Nisab threshold. Here is the complete scholar-reviewed ruling with worked examples.
The ruling: Inherited money becomes part of your zakatable wealth from the date you receive it. Zakat is then due based on your next Hawl anniversary — not on the date of inheritance itself. No Zakat is due immediately on receipt.
Two scenarios: already above Nisab, or below Nisab
Scenario 1: You were already above the Nisab before the inheritance
If you were already above the Nisab and your Hawl was running, the inheritance simply adds to your wealth. It is included in your Zakat calculation on your next Hawl anniversary (the usual date). No new Hawl starts; you don't pay extra Zakat sooner.
Example: Yusuf's Hawl runs 1 Ramadan to 1 Ramadan. He holds £30,000. In Sha'ban he receives an inheritance of £50,000. On 1 Ramadan, his zakatable wealth is £80,000 and his Zakat due is £2,000 (2.5%). He does not calculate Zakat in Sha'ban when he received it.
Scenario 2: The inheritance takes you above the Nisab for the first time
If you were below the Nisab before receiving the inheritance, and the inheritance takes you above it, a new Hawl begins on the date you receive the inheritance. Zakat becomes due one full lunar year later.
Example: Mariam holds £200 in savings (below the Nisab). She receives an inheritance of £15,000 in Muharram, taking her total to £15,200. A new Hawl begins. If her wealth remains above the Nisab, Zakat on her total wealth is due the following Muharram (12 lunar months later).
What if the inheritance is in multiple forms?
- Cash and bank accounts: Full balance is zakatable from date of receipt. Included in your next Hawl calculation.
- Gold and silver: Zakatable from date of receipt at the current market value on your Hawl date.
- Stocks and shares: Zakatable at market value from date of receipt.
- Your family home (inherited): If you live in it, it is exempt from Zakat (like any primary residence).
- Investment property (inherited): Not directly zakatable. Rental income accumulated is included as cash.
- Business assets (inherited): Business trade stock and cash are zakatable. Fixed assets (equipment, premises) generally are not.
Does the deceased's unpaid Zakat affect my inheritance?
If the deceased had unpaid Zakat at the time of death, this is a debt that must be settled from the estate before the inheritance is distributed — in the same way as any worldly debt. Heirs should check with the estate executor to ensure the deceased's Zakat obligations were settled before they divided the inheritance.
Frequently asked questions
Is Zakat due on inherited money?
Yes — but only from the point you receive it, not from the date of the deceased's death. Once the inheritance lands in your possession, it joins your zakatable wealth. If it takes your total wealth above the Nisab, Zakat is calculated on the next Hawl anniversary (after the full 12 lunar months have passed with you holding wealth above the Nisab).
Does inheritance start a new Hawl?
It depends on your existing wealth. If you were already above the Nisab before receiving the inheritance, the inheritance is simply added to your wealth and your Hawl continues running from its original start date. If the inheritance took you above the Nisab for the first time, a new Hawl begins from the date you received it — and Zakat becomes due one full lunar year later.
Is Zakat due immediately on receiving an inheritance?
No. Zakat is not due on the day you receive an inheritance. It becomes due after your wealth (including the inheritance) has been at or above the Nisab for one complete lunar year (the Hawl). You cannot owe Zakat on money you only just received.
What if I inherit property?
Property you live in (your home) is exempt from Zakat regardless of how you acquired it. Investment property is not directly zakatable — but rental income you accumulate from it is treated as cash and included in your Zakat calculation. See our Zakat on property guide for full details.
What if the inheritance is still being processed and I haven't received it yet?
Zakat is not due on wealth not yet in your possession. If an inheritance is going through probate, is tied up in estate administration, or you are uncertain of receiving it, it does not count as part of your zakatable wealth until you actually receive it.
Is the Hawl for inherited money linked to when the person died?
No. The Hawl for Zakat on inherited money begins from the date you (the heir) take possession of it — not the date of the deceased's death. This is the agreed position among all four Sunni schools of jurisprudence.
Calculate your Zakat. Include inherited wealth alongside all your other assets in our Zakat calculator.
Open Zakat Calculator →