Grandfather of my wife bought a saving certificate having value of Rs. 10,000 some 17 years ago. He (grandfather) nominated his granddaughter to have the profit of this saving certificate. As per terms and conditions of saving certificate, it is needed to have the signature of grandfather for encashment of this certificate but the amount would be paid to the nominated granddaughter. The granddaughter draws this saving certificate after the death of her grandfather by providing all documentary proof of death and her identity.
By encashment of saving certificate, she got Rs. 104,500 by add up of all interest or profit what ever it is.
Is this amount of money is halal for her. She is saying that she had got this money from his grandfather as a gift so he can use it.
In the name of Allah, Most Gracious, Most Merciful
Assalaamu `alaykum waRahmatullahi Wabarakatoh
If the savings certificate value was Rs 10,000 seventeen years ago and now it is worth Rs 104,500, the surplus will be interest. Your wife cannot use that money. Furthermore, the actual value of the certificate being Rs 10,000 forms part of the grand-father’s estate. If the grand-daughter is not an heir of that estate, then the Rs 10,000 will be a bequest for her. She will be entitled to it only if the Rs 10,000 is within the 1/3 of the grandfather’s estate after burial expenses and paying of debts
And Allah knows best
Mufti Ebrahim Desai
Darul Iftaa, Madrassah In’aamiyyah