What is the ruling on disposing of the income from a residential building that was built in place of an orchard bequeathed by the grandfather for its produce to be spent on a sacrifice for him and his parents, and as charity on the nights of Ramadan's Fridays, knowing that the building's income is much greater than the orchard's income?

What your grandfather did is considered a waqf (endowment) contingent upon his death, and it falls under the ruling of a will. If his share of the orchard is equal to one-third of his estate or less, then his will must be executed. If it exceeds one-third, then one-third of it is executed, and the remainder depends on the permission of the heirs.

Building a building on the endowed land is permissible if there is an overriding benefit, and the cost of construction should be taken from its income.

As for benefiting from the building's income, it must be in accordance with the condition of the endower (your grandfather) for sacrifices (adhaahi) and charities (sadaqat) on Friday nights of Ramadan (definition). The poor among you are permitted to take from the charities and the meat of the sacrifices according to their need. However, the rich are not permitted to take from charities, nor from the meat of sacrifices on behalf of the deceased, according to the majority of scholars.