Q: My step sister died in 2004 and had a cash balance at bank of £365,000.00 plus interest accrued of £40,000 making a total of £405,000. This estate was divided between 17 family members without considering that no Zakaat had ever been paid since 2004. My views are that zakaat should have been deducted and distributed and interest given away before the division.
A: Even if Zakaat was compulsory on your sister and she did not pay it, it will not be paid from the estate unless she instructed that it be done from the estate. (Raddul Muhtaar V29 P360).
Yes, the interest must be removed.
Moulana Yusuf Laher