There is a family that needed the money of Zakaah but before the money reached it, its state had improved. Is it lawful for this family to use the money that reached it late?

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His Slave and Messenger.

The mere improvement of the state of the mentioned family does not necessarily mean that it does not deserve Zakah. Therefore, one should consider this improvement, if it does not exclude the members of this family from being poor and needy; then, the money is their right and they received it while they deserved Zakah. If the improvement of their state disqualifies them as poor and needy, then, the money is not their right because they only received it after their state improved as the poor do not own the Zakah except when they receive it. Thereupon, they should return this sum to the owner of the Zakah to give it to the poor.

Ibn Qudaamah said in Al-Mughni: “Imaam Ahmad said: 'if someone pays Zakah of five dirhams to a poor person who accepted to take it and told him to buy him a garment or some food then the dirhams were lost or he bought what he requested but lost it, he should give him instead of it because he did not receive it from him..’” Ibn Qudaamah said: “He said so because the poor person does not own the Zakah unless he receives it.” [End of quote with slight omission] Thus, in case the state of the mentioned family improved before receiving Zakah so that it no longer needed it, this family should return it to the giver of Zakah to pay it to those who deserve it because it only received it after it became undeserving of Zakah.

Allaah Knows best.