What is the fate of the share of the inheritance of her deceased father that belongs to a daughter who has lost her mind, and is it given to her children or to her?

A person afflicted with insanity does not lose ownership of their wealth. Rather, this wealth is given to their guardian (the one who manages their affairs) to spend on them from it. Allah Almighty has forbidden giving wealth to the foolish, because it is the sustenance for people's livelihoods. An incompetent person is interdicted due to minority, insanity, mismanagement, or bankruptcy.

If there are Sharia courts, the Sharia judge appoints a guardian for them. If not, her adult, sane children agree on one of them to be the guardian. If they disagree, they refer to people of knowledge to choose the most suitable. In case it is impossible to reach the ruler, the community of upright Muslims takes his place.