Answered by Shaykh Amjad Rasheed
My non-Muslim grandmother died and she left me less than one-third of her wealth. Should I return it to her non-Muslim relatives? Is it permissible for me to give it to poor Muslims, or can I use it for my family for study since we really need it?
If your grandmother left it to you as a gift before her death, then it is lawful property for you and you can do as you wish with it. Also, if she left it to you as a bequest for you to take after her death, it is also lawful property for you.
If she did not do so, then a Muslim does not inherit from a non-Muslim, nor a non-Muslim from a Muslim [f: because of the explicit hadiths of the Messenger of Allah (peace and blessings be upon him) that establish this]. In such a case, the wealth is the right of her non-Muslim relatives. You may not use it for yourself, nor for poor Muslims, except with the permission of those who deservedly inherited the wealth.
Amjad Rasheed
[Translated by Sr. Shazia Ahmad]