So whats the correct procedure
Ref. No. 40/1163
In the name of Allah the most Gracious the most Merciful
The answer to your question is as follows:
Islam commands the one who has orphans under his care to look after them properly and raise them well, and if they have wealth he is to guard it. A stern warning has been given in the Quran against those who use up the orphan’s wealth unjustly. Quran says: “Verily, those who unjustly eat up the property of orphans, they eat up only a fire into their bellies, and they will be burnt in the blazing Fire!”Surah An-Nisa (4:10)
When this verse was revealed, the Sahaba avoided eating with orphans. Even they threw the food left over by the orphan but they couldn’t eat. So another Quranic verse was revealed: “And they ask you concerning the orphans, Say: To set right for them (their affairs) is good, and if you become copartners with them, they are your brethren; and Allah knows the mischief-maker and the pacemaker. So the scholars say that the orphan’s wealth in the hands of guardian is an amanat (trust), which gave the guardians permission to eat with the orphans without crossing the limit. The guardians must look after the wealth of orphan and can eat with them without misusing his wealth. If the guardian is poor, he can eat from the wealth of the orphan for his services. The sincere guardians are advised to invest his wealth in business to increase his assets so that it will not end when he is in need at later stages of life.
Now you are advised to separate the orphan’s share from your all wealth and put it aside then take out monthly expenditure from it and spend jointly with your wealth. The shariah insists on not usurping the orphans’ shares and forbids misusing it. If you are needy, you can take from the wealth of orphans meant for your services with no intention of usurping. May Allah help you in this very important matter!
و فی الاستحسان یجوز ان یاکل بالمعروف اذا کان محتاجا بقدر ما سعی (رد المحتار، باب الوصی، 713/6)
And Allah knows best
Darul Ifta
Darul Uloom Waqf Deoband