Can I Use the Return on Funds That I Plan to Gift?
Answered by Shaykh Muhammad Carr
Question
I plan to gift my share of the inheritance to my brother, but we haven’t been able to connect due to misunderstandings. Can I keep the money in my halal savings account, which generates profit, and use the profits while I wait to give him the full amount? Is this permissible?
Answer
May Allah resolve and replace the misunderstandings with love, compassion, and understanding.
Planning to gift the money to your brother does not constitute a contract and does not involve any transfer of ownership. Furthermore, a gifting contract (hiba) is only finalized once the recipient takes possession of the gift. [Bajuri, Hashiya]
As it stands, the principal amount belongs to you. If the savings account is genuinely Shari‘a compliant, the return also belongs to you; otherwise, it does not.
And with Allah alone is our success.
[Shaykh] Muhammad Carr
Checked and Approved by Shaykh Dr. Muhammad Abu Bakr Badhib
Shaykh Muhammad Carr has dedicated his life to studying and transmitting our beautiful deen. His studies have taken him around the globe, where he has benefitted from many luminaries. Under the guidance of his teachers – Shaykh Taha Karan, Shaykh Yaseen Abbas, Shaykh Muadh Ali and many others – Shaykh Muhammad has grown to appreciate the beauty and benefits of diverse scholarship. He completed his memorization of the Qur’an at Dar al-Ulum Zakariyyah in September 1997 and received an Alimiyya Degree in 2006 from DUAI (Darul Ulum al-Arabiyyah al-Islamiyyah). He is also affiliated with Masjid Auwal in Bo Kaap, Cape Town (the oldest mosque in South Africa), where he serves as a co-imam, and Dar Al-Safa, where he has taught since 2018. As a teacher, he imparts the wisdom of our heritage and tradition by opening the door for students. As an imam, he has the unique opportunity to serve his community in daily life.
In addition to his roles as a teacher and imam, Shaykh Muhammad Carr has contributed significantly to the administrative and advisory aspects of Islamic institutions. Since 2023, he has served as the Administrative Director at The Imam Kurani Institute, contributing to the institution’s growth and development. He continues to pursue traditional Islamic Sciences, possessing a keen interest in Islamic Contract Law and Finance. Shaykh Muhammad has been a Shari’ah Board Member for Islamic Asset Management & Insurance Companies since 2001, aligning financial practices with Islamic principles.
