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al kafi 1535


Assalamualaikum w.b.t, SS Mufti. I have a question regarding the ‘kutu fund’. If one involved in ‘kutu fund’ before he passes away and it is fated that he passes away before finishing all rounds of the ‘kutu fund’ payment. This means, the deceased still have some rounds to be paid for this fund. The question is if the heirs of the deceased intend to settle the payment on behalf of the deceased, should he say his aqad clearly in front of the other kutu funders by stating that the payment left will be settled by him (the heir’s name). This is because the deceased has already been free from that loan. Is it permissible for the heir to say that the kutu fund will be paid by the heir, but does not specify which heir will carry the burden? If the heir fails to settle the loan in the future, is it considered as a loan or burden upon the heir? Hope for a further explanation from ustaz on the above-said matter. Thank you.



Alhamdulillah, praise and thanks to Allah for the countless blessings He has blessed us all with. Blessings and salutations to the Prophet Muhammad PBUH, his wives, his family, companions and all those that follow his teachings to the day of judgement.

We start this with the words of Allah SWT:

مِن بَعْدِ وَصِيَّةٍ يُوصِي بِهَا أَوْ دَيْنٍ

after any bequest, he [may have] made or debt.

Surah al-Nis’ (11)

Through this verse, the scholars had decided that the division of inheritance may only be done after settling one’s debt and his will have been fulfilled. And in this verse, Allah SWT mentioned the will first and then followed by debt, but it does not mean that the will is prioritized than debt. However, it is a sign of concern and encouragement for the heirs to settle. [See: al-Fiqh al-Manhaji; 5/73-74].

Coming back to the question above, we will explain about this question by highlighting some important points.

The Ruling of Kutu Fund

In this matter, kutu or its real meaning is a teamwork effort to gather money each month and decide on the turn for those who are involved. [See: Kamus Dewan Edisi Keempat]. Basically, kutu fund is permissible. This has been discussed in depth through both religious and Malaysian laws’ perspectives in our article entitled AL-KAFI #131: THE RULING OF MODERN KUTU FUND.

Is it Considered as The Inheritance?

Quoting an excerpt from the article we mentioned before:

“money received by a person which is his own money, but gathered in the future. It is just that the benefit will rise when his turn comes. So, as a funder, he will be able to use it in advance due to the fund from other funders. The payment in advance through Islamic perspective is as an al-qardh al-hassan (benevolent lending) in which no benefit is gained or given from each funder. This means, each month, all funders will contribute a loan in which the same amount of money will be received by him when his turn comes”.

Based on the explanation given, it can be understood here that kutu fund is actually own personal savings, but in the form of loan. So, it is proven here that if a deceased passes away and already receive his portion from the kutu fund, it is considered as the inheritance and it should be divided to the rightful heirs.

The same is when the kutu fund is not yet received by him, so the heir should ask for it from the rest of the funders or the head of the kutu fund (leader) who organise it, and it is still considered as the inheritance because it is among the deceased’s savings.

Unsettled Kutu Fund for the Next Months

The next question that arises is when the money received before the deceased passed away, but the complete round for next months are not yet settled. Here, it is the obligation upon the heirs to settle it before the remainder of the property is divided among the heirs through faraid. This is because the deceased has a debt towards the other funders.

Settling debts is one of the four right of a deceased which should be done by the heirs. While all matters related to the settlement of debt should be taken from the property of the deceased unless there are heirs or any individuals who willingly settle the debt. This is because the debt is should still be paid by the debtor (the one who is in debt) whether while he was alive or after he passes away. The debtor will still be asked by the creditor (the one who provide the debt) to pay for it. And when he passes away, it is an obligation upon the heirs to settle the debt. This means the deceased will not be free from any debt if it is already settled, paid by the heirs on behalf of the deceased or if the creditor withdraws his right upon the property.

Aqad Tabarru’at (Welfare) / Guarantee

Here, the heir said that he is willing to pay for the debt of the deceased voluntarily. So, zimmah (obligation) of the debt is still upon the deceased because the heir has his right to revoke his intention to settle the debt. It should be reminded here that the mere difference is the money for this aqad is taken from the property of the heir and not from the deceased because it is a mere kindness of the heir upon his dead family member.

It is different from the aqad of guarantee in which it is taken from the deceased’s property first followed by the heirs’ if the debt is still there.


In conclusion, to answer the question presented, we state here that kutu fund received before the deceased passed away is part of the inheritance and it should be divided to the rightful heirs. Then, the rest of the needed payment for the next months should be settled by his heirs using the property left by the deceased unless if there is anyone among his heirs who is willing to pay for the debt and the deceased is considered free from the burden (zimmah) after the debt is settled. Lastly, we cite a hadith of the Prophet PBUH:

نَفْسُ الْمُؤْمِنِ مُعَلَّقَةٌ بِدَيْنِهِ حَتَّى يُقْضَى عَنْهُ

"The believer's soul is suspended by his debt until it is settled for him."

Jami’ al-Tirmidhi (1078)

May Allah SWT give us all understanding in His religion, blessings in our provision and protect us from the grip of debt.

Wallahu a’lam.