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Ruling 1949

If a poor person dies and his estate is insufficient to repay his debt, one may count the amount he is owed by the deceased towards his zakat. In fact, if his property is sufficient to repay his debt but his inheritors do not settle his debt, or, if for some other reason one cannot reclaim the money he loaned the deceased, he can count the amount he is owed towards his zakat in this case as well.