From the above Hadith, it is evident that the descendants of Rasulullah Sall-Allahu alayhi wa sallam can not accept Zakaat. They should be assisted with Lillah funds only. If a Sayyid is in dire need and Lillah funds are not available, then only may he be assisted with Zakaat funds. Is it right? what is the meaning Lillah fund?
Ref. No. 1008/41-167
In the name of Allah the most gracious the most Merciful
The answer to your question is as follows:
The sayyid family members are not eligible to receive obligatory Sadaqat (Zakat). So, if a sayyid is poor and in dire need, it is duty of all Muslims to look after him and help him with voluntary sadaqat (sadaqat-e-nafila), indeed there is a duty on wealthy aside from zakat as it is said in a Hadith recorded in many books.
It is the matter of great concern if a sayyid family is in dire need and Muslims do not help them with voluntary sadaqat. May Allah give us taufeeq to support the sayyid family with gifts and voluntary sadaqat to show our gratitude towards this blessed family!
And Allah knows best
Darul ifta
Darul Uloom Waqf Deoband