QA-ID-0028
QUESTION
If parents have saved money that will be given to the children when they get older does zakaat need to be paid on it.
The money saved is in the parents name but doesn’t be used on anything. The reason being is because setting up a bank account for a child the bank charges money
The children are aged 1 and 2. The money we plan to give them when they are over the age of 18 for when they need to buy a car or house etc.
ANSWER
﷽
If you have set aside funds in this bank account for your children, planning to transfer ownership when they reach 18, zakāt is mandatory on this amount annually. This is because reserving money in this manner, intending to give it to them in the future, does not qualify as a valid gift to your children currently.
والله تعالى أعلم
And Allāh Knows Best
Muhammad Kalim Misbahi
