Fatwa No : 84355
The ruling on giving money obtained through prize bonds to daughter-in-law

The ruling on giving money obtained through prize bonds to daughter-in-law

What do the honorable Islamic scholars say regarding the following issues: Our grandfather used to frequently purchase prize bonds. On one occasion, around the year 1956, he won a prize of five hundred thousand rupees. Later, when he learned that dealing in prize bonds is considered impermissible (haram) in Shariah, he completely abandoned the practice. He then inquired from the scholars about what to do with the five lakh rupees he had won, asking if he could give it to his children. The scholars said: “No, this money should be given to someone outside your family.” Then he asked, “Can I give it to my daughter-in-law (my mother)?” The scholars replied, “Yes, you may give it to your daughter-in-law, as she is not among your heirs.” Accordingly, the grandfather purchased a house with that amount and gifted it to my mother. Now my mother says, “This was haram money. We should sell this house and donate the proceeds to a madrasah (Islamic school),” and she also donates the rental income from the house in charity. Now we seek clarification: Is the rental income from this house permissible (halal) or not? What should be done with the house? Should we give away only the original five lakh rupees to a madrasah, or should we donate the current market value of the house? What is the ruling regarding the profit (increase in value) of the house? Is it haram or permissible in Shariah?

الجوابُ حامِدا ًو مُصلیِّا ً

Participating in a prize bond scheme with the intention of winning a prize, and accepting such a prize, are both impermissible and prohibited (haram) according to Islamic law. It is necessary to avoid both. If someone has already participated in such a scheme and received a prize, the primary ruling is that they should purchase prize bonds of equivalent value and destroy (tear or burn) them so that the amount effectively returns to the issuing institution. If that is not possible, then the amount must be given in charity (sadaqah) without the intention of earning reward.
After that it should then be clarified that if the questioner’s mother was eligible to receive zakat at the time when her father-in-law (the questioner's grandfather) purchased and gave her the house, then it was undoubtedly permissible and valid for her to take possession of that house. Even if she later became financially capable (a sahib-e-nisab), it remains entirely lawful and valid for her to continue using the house, and there is no need for her to worry. However, if she was already a sahib-e-nisab (not eligible to receive zakat) at that time, then it is mandatory to give the equivalent of the purchase price of the house — that is, five hundred thousand rupees — in charity. And Allah knows best.