Title: Can We Use Zakah to Clear Debts For a Relative? Question: Some 20 years ago my parents advised a person to deposit some money in one of the financial companies to help one of our relatives who was a new employee there to improve his position in that company. After some time that company defaulted and was closed down .The investors lost whatever was deposited. This raises few questions in our minds. Is it appropriate to hold my parents responsible for this lost amount? Can we use zakat funds to clear that debt? The responsibility of the person for whom this was done to help him in this new job. Answer: Following are the responses to your questions: Your parents cannot be accountable in this matter. They can only be held responsible if the advice given was of a contractual nature. The contract should have had the stipulation your parents would be financially responsibility for any losses incurred to the investor. If there is no such contract then the advice is merely just that, advice. One has to consider that your parents were giving that recommendation to benefit another person. If this was not a loan and the person gave this money out of goodwill then nothing can be expected in terms of compensation; the investment was his choice to make. From what little information you have given us (if there was a contract or not) it seems that your parents are not responsible for the amount lost. Zakat (religious donation) can be paid for a debt if the debtee (person whom money is owed) cannot be paid back. Otherwise, all debts are to be paid in full to the rightful person. In light of the reply to the first question it seems that there is no fault on your parents' part and therefore there is no debt due. With the lack of information, and maybe even the lack of knowledge of the relative, it seems that this person has nothing to do with the matter. I hope I have clarified the issue. God knows best. Ronnie Hassan February 3, 2007