Question Summary:
Can I give zakat to an elderly couple?

Question Detail:

My question is regarding zakat, more about the conditions that qualify on to receive it. I understand that it is better to give directly to a needy person than giving zakat to an organisation.

There is an elderly couple. The husband is still working and should be on retirement but still continues to work because they cannot survive if he does not.
From the information I have gathered and received, their household position (T.V, furniture, appliances etc) cannot be more than R3000-4000 in total and most of it was given to them by family or friends which has been confirmed.
The income they receive is enough to pay rent, buy some food and pay accounts; etc before the month is over they have no more cash. They had to sell their car due to their financial problems so they do not currently have a car. They do possess some cash which they keep for emergencies and some wedding jewellery; I have requested the weight of the gold. 
My understanding is that their debt and monthly living exceeds their procession.
1.      I do understand that if their cash and jewellery add up to the nisab amount for zakat, they do not qualify to receive zakat, but if it is below the nisab, they should qualify to receive zakat, is this correct?
2.      If their cash and jewellery amount to the nisab but their debt is far more e.g: they have R15,000 cash and jewellery and their debt is R50,000, do they qualify for zakat?

Answer :

In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh

The first thing we need to establish is that both the husband and wife are separate entities and their zakāt must be calculated individually.[1] In all probability, the jewellery will belong to the wife. If the wife herself possesses value of the nisāb (and fulfils the other conditions), she will have to give zakāt individually.[2] Thus the husband won’t include the wife’s assets when calculating his assets.

1.      If the value of the jewellery and cash amounts to less than the nisāb, these people will be eligible to receive zakāt.
2.      If a person possesses the nisāb amount, however, he is in debt to such an extent that if the debt was subtracted from his wealth he would no longer possess the nisāb; it will be permissible to give such a person zakāt.[3] [4]
And Allah Ta’āla Knows Best
Mawlana Saanwal ibn Muhammad,
UK
Student Darul Iftaa 
Checked and Approved by,
Mufti Hussain Kadodia.
www.daruliftaa.net