Abu Dawud

(1) Thus, a needy person may take a wage for supervising and managing the property of an orphan, and that too only a very reasonable amount. However, for one who eats and drinks (from the orphan's property), it is better not to take any compensation for his supervision and so forth.

(2) If one engages in trade with the orphan's property with the intention of acquiring the profit for himself, then such trade is not permissible.

Benefits and Issues:

➊ Consuming the wealth of an orphan is a grave sin. Allah the Exalted has said:

“Indeed, those who consume the wealth of orphans unjustly are only consuming fire into their bellies, and they will be burned in a blazing fire.” (An-Nisa 4:10)

➋ If the guardian of the orphan is poor, he may fulfill his most essential needs from the orphan’s wealth, but he cannot spend it on luxuries or comforts.

➌ Even for a poor person, it is better that he meets his expenses through his own labor and keeps the orphan’s wealth preserved.

➍ The meaning of saving one’s own wealth through the orphan’s wealth is that, for example, if someone asks for a loan, he gives the orphan’s wealth and keeps his own safe; or he spends the orphan’s wealth on his personal needs and saves his own.

➎ Engaging in trade with the orphan’s wealth and giving the orphan his share (mudarabah) is permissible, but it is not permissible to trade with his wealth and keep all the profit for oneself, or to spend his wealth in the same unrestricted manner as one spends one’s own wealth.