Q: Can the debts of a deceased who was eligible to receive Zakaat be paid with Zakaat monies ?
A: It is not permissible to utilise Zakaat funds to pay off the debts of a deceased person. One of the fundamental requirement in the discharging of Zakaat is the aspect of Tamleek. Tamleek means to transfer ownership of the wealth to someone who is living and eligible for Zakaat. In this case (i.e. discharging the debt's of a deceased), this condition is not met, hence discharging the debts of a deceased with Zakaat is not valid.
And Allah Knows Best
Darul Ihsan Fatwa Dept.