The Ruling on Disposing of an Orphan's Wealth
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Question: If a man has an orphan in his care who possesses wealth, and the man is managing the orphan's affairs, is it permissible for him to dispose of that wealth, given that the orphan's principal capital is preserved and will be returned to him?
Answer: Allah (Glorified and Exalted is He) has commanded the improvement of the condition of orphans and prohibited approaching their wealth except in the best manner. He, the Exalted, said: [al-Baqarah:220]. And He, the Exalted, said: [al-An'am:152].
Therefore, it is obligatory for the guardian of the orphan to act in accordance with these two verses. This means improving the orphans' wealth, making every effort to develop and increase it, and preserving it; either by trading in it, or by entrusting it to a trustworthy person to trade in it for a shared portion of the profit, such as half or similar, according to the custom in the country of the transaction. If the guardian donates the entire profit to the orphan, that is better and more excellent. As for the guardian disposing of the orphan's wealth for the guardian's own benefit, to meet his needs, or to develop his own trade, or the like, it appears that this is not permissible, because this is not an improvement for the orphan, nor is it approaching their wealth in the best manner.
However, if he spends it to preserve it for the orphan, with the intention of a loan, because he fears its loss, theft, or the like if it remains, and he cannot find a trustworthy person to work with the orphan's wealth, then in this situation, this is considered an improvement and preservation of the orphan's wealth, provided the guardian is wealthy and there is no risk to the orphan's wealth remaining in his liability.
In summary: The obligation upon the guardian of the orphan is to do what is good for the orphan. And Allah (Glorified and Exalted is He) is the One who knows the corrupter from the improver; He rewards every worker for his work; if it is good, then good, and if it is evil, then evil.
And we ask Him to make us and you successful in what pleases Him.
Answer: Allah (Glorified and Exalted is He) has commanded the improvement of the condition of orphans and prohibited approaching their wealth except in the best manner. He, the Exalted, said:
And they ask you about orphans. Say, "Improvement for them is best. And if you mix your affairs with theirs - they are your brothers. And Allah knows the corrupter from the amender
وَيَسْأَلُونَكَ عَنِ الْيَتَامَى قُلْ إِصْلاَحٌ لَّهُمْ خَيْرٌ وَإِنْ تُخَالِطُوهُمْ فَإِخْوَانُكُمْ وَاللّهُ يَعْلَمُ الْمُفْسِدَ مِنَ الْمُصْلِحِAnd do not approach the orphan's property except in a way that is best until he reaches maturity
وَلاَ تَقْرَبُواْ مَالَ الْيَتِيمِ إِلاَّ بِالَّتِي هِيَ أَحْسَنُ حَتَّى يَبْلُغَ أَشُدَّهُTherefore, it is obligatory for the guardian of the orphan to act in accordance with these two verses. This means improving the orphans' wealth, making every effort to develop and increase it, and preserving it; either by trading in it, or by entrusting it to a trustworthy person to trade in it for a shared portion of the profit, such as half or similar, according to the custom in the country of the transaction. If the guardian donates the entire profit to the orphan, that is better and more excellent. As for the guardian disposing of the orphan's wealth for the guardian's own benefit, to meet his needs, or to develop his own trade, or the like, it appears that this is not permissible, because this is not an improvement for the orphan, nor is it approaching their wealth in the best manner.
However, if he spends it to preserve it for the orphan, with the intention of a loan, because he fears its loss, theft, or the like if it remains, and he cannot find a trustworthy person to work with the orphan's wealth, then in this situation, this is considered an improvement and preservation of the orphan's wealth, provided the guardian is wealthy and there is no risk to the orphan's wealth remaining in his liability.
In summary: The obligation upon the guardian of the orphan is to do what is good for the orphan. And Allah (Glorified and Exalted is He) is the One who knows the corrupter from the improver; He rewards every worker for his work; if it is good, then good, and if it is evil, then evil.
And we ask Him to make us and you successful in what pleases Him.
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.