Trust Fund
Question:
My Grandmother set up a trust fund to pay for education for her Grandchildren, but that we can ask for money from at any time, and any that is not used will be shared equally between the children as they each reach 25. Three have received theirs, and two have not. I recently asked for some money from this fund, and was sent an amount, but this time I noticed the money comes through a high interest account.
I do not know either whether the shares are in halal companies, but could find this out insha’Allah. The shares are not in our names as far as I understand.
Can you please comment on whether or not this would be halal, if it isn’t should I deposit the cheque and get rid of it, or just pretend I never received it!
Answer:
If the trust fund set by your grandmother is in an interest bearing account, and the money that is generated in this account is from interest, then to take the access amount (interest) will be unlawful. You must determine what was the actual sum that was deposited by your grandmother, thus to avail of this amount will be permissible. Anything extra, however, will be interest, thus unlawful.
Secondly, with regards to the excess amount, it should be taken out and given to the extremely poor without the intention of reward.
And Allah knows best
[Mufti] Muhammad ibn Adam
Darul Iftaa
Leicester , UK