Can Zakat funds be used to pay the debts of a deceased person?
Chapter on Zakat on Sheep
Al-Mughni
Book of Zakat
Primary text
It is not permissible to pay the debt of a deceased person from Zakat funds. The ruling is that the debtor is the deceased, and payment cannot be made to him. If paid to the creditor, the payment ultimately goes to the creditor, not the debtor (the deceased).
Supporting text
It is permissible to pay the debt of a living person from Zakat funds. If the debt of the deceased is such that its payment benefits their dependents (ahluhu), then it may be permissible under the category of supporting the needy among the heirs.