Assalam u Alaikum,
I started an RESP accont for my daugter in Dec 2006. This account is dedicated to my daughter and she is the one who can collect this money when she will start gong to University. Money reached to Nisab (On Silver) in almost 7 months after the start date. How I can calculate zakat on this account. My daughter have no access on this account and she can’t get a single penny till she start going to University in 2024. If I want, I can cancel this account any time and withdraw the money but will have to pay a big penalty.
Q1- Who is responsible for this Zakat. Me or my daughter?
Q2- If me than why when I gifted this money to my daughter?
Q3- If my daughter, than she became baligh in 2017, so I have to pay zakat from 2018? Althogh she doesn’t have any access of the this amoutn.
Q4- Goverment also added some money to this account but this amount will be available at the time of the maturity of account in 2024. If you cancel this account before that date, goverment will take this amount back. Do we have to pay zakat on this amount too?
Your quick answer will be highly regarded.
Jazak Allah Khair
بسم اللہ الرحمن الرحیم
الجواب وباللہ التوفیق
In answer to your question:
- The amount you have deposited for your daughter’s higher education will continue to be considered your money until your daughter assumes possession and access to that account. Therefore you will remain responsible to pay Zakat on it, until that time.
Presenting a gift means giving full possession and disposal of that item. Even though you have set aside that amount for your daughter’s future needs but she does not yet have the possession and disposal of it. So that money will be counted as yours and Zakat will be obligatory on you. However, after having true possession and gaining access to that account, Zakat will become obligatory on her after completion of “Zakat Year” on that money.
- If the money invested by the government is interest-based as it seems so, then Zakat is not obligatory on that portion of money, but instead it will be necessary to give it out in charity without the intention of reward. But if the government’s share of money is interest-free (as a gift) then that money will be liable for Zakat, but only after having received that amount.Please note that if the government-provided share of money becomes equal to “Nisab” or when added to the money already deposited by you into your daughter’s account, totals up to “Nisab”, in either case, Zakat will become due only when a complete “Zakat Year” has passed on that money.
فقط واللہ اعلم بالصواب