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Ruling 2171

A person who settles his property with someone must be of the age of legal responsibility (bāligh), sane (ʿāqil), and he must have an intention (qaṣd) to settle. Furthermore, no one must have compelled him [to settle], and he must not be foolish with finances (safīh)1 nor be prohibited from having disposal over that property because of bankruptcy.
 
1 Ruling 2091 provides further clarification of this term: it refers to someone who spends his wealth in futile tasks.