Is it permissible for an ongoing charity (sadaqah jariyah) to be made on behalf of the deceased from the wealth of their heirs, and not from their own personal wealth?
Scholars have agreed that supplication (du'a), seeking forgiveness (istighfar), charity (), and Hajj all reach the deceased. They have based this on verses from the Quran and authentic hadiths. As for prayer (salat) and fasting (sawm), the of Imam Shafi'i and the majority of scholars hold that their reward does not reach the deceased, unless the fasting was obligatory upon the deceased and his guardian fasted on his behalf. However, groups of scholars have maintained that the reward of all acts of worship reaches the deceased. Furthermore, ongoing charity (sadaqah jariyah), such as endowments (waqf), digging a well, and planting trees, benefits the deceased. The best thing that benefits the deceased is supplicating for them, because it is among the deeds whose reward does not cease with the cessation of a human being's actions. Among the best forms of charity are striving in the path of Allah (jihad fi sabilillah), building mosques, and supporting students of knowledge.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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