Compensation Fund Increased in Value: Halal or Haram

My cousin suffered an accident when she was younger and was granted compensation. This was then held in a trust fund until she was eighteen (she was not allowed to have the money by law) and as a result the money is more than the original amount. She is not sure whether the money was gathering interest or whether it was derived from investment..

Walaikum assalam,

1. If able to, she would need to ask how the money increased in value.

2. If unable to ask, she has to see:

(a) if those overseeing the trust are practicing, religiously-conscious Muslims, then she can assume that the increase was through halal means;

(b) if those overseeing the trust are non-practicing Muslims, or non-Muslims, then she could not keep the amount above and beyond the initial compensation until reasonably certain that it was through a means permitted in the Shariah.

The Prophet (Allah bless him & give him peace) instructed, “Leave that which makes you doubt to that which does not make you doubt.” [Tirmidhi & Nasa’i, Nawawi confirmed that it is sound (hasan) in his Majmu`]

See answer in Related Q&A on what to do with haram money…

Walaikum assalam,
Faraz Rabbani