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Hadith 6336

عَنِ ابْنِ عَبَّاسٍ رَضِيَ اللَّهُ عَنْهُمَا قَالَ لَمَّا نَزَلَتْ وَلَا تَقْرَبُوا مَالَ الْيَتِيمِ إِلَّا بِالَّتِي هِيَ أَحْسَنُ عَزَلُوا أَمْوَالَ الْيَتَامَى حَتَّى جَعَلَ الطَّعَامُ يَفْسُدُ وَاللَّحْمُ يُنْتِنُ فَذُكِرَ ذَلِكَ لِلنَّبِيِّ صَلَّى اللَّهُ عَلَيْهِ وَآلِهِ وَسَلَّمَ فَنَزَلَتْ وَإِنْ تُخَالِطُوهُمْ فَإِخْوَانُكُمْ وَاللَّهُ يَعْلَمُ الْمُفْسِدَ مِنَ الْمُصْلِحِ قَالَ فَخَالَطُوهُمْ
It is narrated from Sayyiduna Abdullah bin Abbas (may Allah be pleased with them both) that when this verse was revealed: "Do not go near the wealth of the orphan except in the best manner," people separated the wealth of the orphans from their own wealth. (But due to this, the problem arose that) the orphan's food would spoil and the meat would become foul-smelling, and thus his wealth would be wasted. So when this matter was presented before the Noble Prophet (peace and blessings be upon him), this command was revealed: "If you mix them (the orphans) with yourselves, then they are your brothers, and Allah knows the corrupter from the reformer."
Hadith Reference الفتح الربانی / مسائل الوصايا / 6336
Hadith Grading محدثین: ضعیف
Hadith Takhrij «اسناده ضعيف، عطاء بن السائب كان قد اختلط۔ أخرجه ابوداود: 2871، (انظر مسند أحمد ترقيم الرسالة: 3000 ترقیم بيت الأفكار الدولية: 3000»
Brief Explanation
Benefits: … Hafiz Ibn Kathir said: Mujahid, Ata’, Sha’bi, Ibn Abi Layla, Qatadah, and many among the Salaf and Khalaf have narrated this very context of revelation (shan al-nuzul) for these two verses. (Tafsir Ibn Kathir: 1/375)

The requirement of the first verse mentioned in the hadith is that whoever is made responsible for the care (kafalah) of an orphan, it becomes obligatory upon him to act with complete goodwill towards the orphan in every way. Whatever wealth the orphan has received from inheritance, it must be safeguarded with utmost sincerity until the orphan reaches the age of maturity and understanding. It should not happen that, under the pretext of guardianship, the orphan’s wealth or property is disposed of before he attains the age of discernment. When the noble Companions (radi Allahu anhum) heard these instructions, in order to protect themselves from every kind of warning and accusation, they began to keep the orphan’s wealth and belongings entirely separate. However, this led to harm and loss for the orphan’s wealth. Then Allah Ta’ala revealed the second verse, clarifying that for the purpose of reform and improvement, it is permissible to mix their wealth with your own.