What is the ruling regarding an orphan's property being used for trade by the guardian or entrusted agent?
Chapter on Selling the Musarrah (Animal with milk retained in udder)
Al-Mughni
Book of Sales
Primary text
The guardian of an orphan's wealth is permitted to trade with it or entrust it to another for trade, setting a predetermined share of the profit for the trader, whether the trader is a guardian, judge, or an appointed trustee. This is preferable to leaving the wealth stored. This practice is supported by the majority, including Ibn Umar, Malik, Al-Shafi'i, and the Companions, based on the Hadith attributed to the Prophet, peace be upon him, stating, 'Whoever is guardian over an orphan with wealth, let him trade with it and not leave it until charity consumes it,' which is also narrated from Umar ibn al-Khattab and is considered sounder than the prophetic narration. Trading must be conducted only in secure locations and only entrusted to the trustworthy, avoiding risk to the wealth.
Supporting text
If the guardian trades with the wealth himself, all the profit belongs exclusively to the orphan, as profit is the growth of the orphan's wealth and cannot be claimed by another without a valid contract, and the guardian cannot contract for profit-sharing with himself. However, if entrusted to another, the trader receives the share agreed upon with the guardian, as the guardian acts in the orphan's best interest, making his disposition equivalent to that of an owner.