Sayyiduna Abu Huraira (may Allah be pleased with him) said: The Messenger of Allah (peace and blessings be upon him) said: "Whoever dies leaving wealth, it is for his heirs, and whoever leaves a debt, it is upon us."
Hadith Referenceمسند اسحاق بن راهويه / كتاب البيوع / 444
Hadith Takhrij«بخاري ، كتاب الكفالة ، باب الدين ، رقم : 2298 . سنن ابوداود ، رقم : 2900 . مسند احمد : 287/2 . صحيح ابن حبان ، رقم : 5054 .»
Explanation & Benefits
Hafiz Abdush Shakoor Tirmidhi
Benefits: ➊ From the mentioned hadith, it is understood that whatever wealth the deceased leaves behind should be distributed among his heirs.
➋ ... From the mentioned hadith, the compassion and mercy of the Noble Prophet (sallallahu alayhi wa sallam) upon his ummah is also established. He said: "Whoever leaves behind a debt or children, then that is our responsibility." It is understood from this that it is the responsibility of the government that if someone dies indebted, the government should pay off his debt and take care of the helpless young children and widows. However, if the government does not pay the debt, then whatever inheritance he has should first be used to pay off the debt, and only afterwards should the inheritance be distributed.
As is mentioned in a narration: Sayyiduna Sa'd bin Atwal al-Juhani (radi Allahu anhu)'s brother passed away leaving behind three hundred dirhams as inheritance. Since the deceased also had family, Sayyiduna Sa'd (radi Allahu anhu) says that he intended to spend these dirhams on the family of the deceased, but the Noble Prophet (sallallahu alayhi wa sallam) said: "Indeed, your brother has been held back because of his debt, so pay off the debt on his behalf (first)." (Sunan Ibn Majah, no. 2433; Musnad Ahmad: 5/7)