Paying interests to cover burial expenses of one’s relative
12-10-2010 | IslamWeb
Question:
Assalamualaikum, I am working in Dubai and I have a savings account in an Indian bank where in I send money monthly. I have received some intereset money from the bank and it was lying in that account. So I removed it and gave it to one of my uncle who was responsible for handling medical expenses of my Grand Father's (Paternal) brother as he was in need. I have not informed my uncle that it is "Interest Money". Today morning I came to know that my Grand Father's brother expired. My question is "Is it ok if my uncle uses the money for the funeral expenses like burial ground, purchasing kafan cloth etc. did i do anything wrong by giving the money. I want to know whether we can use the interest money for muslim's funeral services. Did i do anything wrong? Jazakallahu Khair Mohammed Irfan Yusuf
Answer:
All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad 
is His slave and Messenger.
First of all, you should know that it is not permissible to open an account in a bank that deals with Riba (interest and/or usury) except in case of necessity as we clarified in Fataawa 90054 and 88694. Also, the interests should be spent on the general welfare of Muslims and it is permissible to give it to the poor and the needy. So, if there is a relative who is needy and poor, it becomes permissible to give it to him for his treatment or burial expenses and it is not an obligation to inform the person to whom you give the money about the reality of that money, as this money is considered lawful and good for him.
However, if he is rich, it is not valid to pay it to him and you are not acquitted from sin by giving it to him; rather, it must be spent on the permissible fields and you should not benefit from it or give it to whomever you are obligated to spend on.
Therefore, you should check the condition of the person to whom you gave those interests, if he was rich, then what you paid to him is from your own money [i.e. it is like a charity] and you have to give an amount equal to the interests that you had given to him in the permissible fields as mentioned before, so that the remaining money of yours will be lawful and good for you. But if this person [to whom you gave the interests] was poor and needy, then you are not sinful for what you did. For more benefit, please refer to Fatwa 135049.
Allaah Knows best.