Sayyiduna Umar (may Allah be pleased with him) narrated that the wealth (gardens, etc.) of Banu Nadir was among those things which Allah Almighty granted to His Messenger (peace be upon him) without fighting. The Muslims did not make their horses and camels run to acquire them, so this wealth was exclusively for the Messenger of Allah (peace be upon him). From it, he (peace be upon him) would give his noble wives their annual maintenance, and the remainder he would spend on weapons and horses so that there would always be readiness (for jihad) in the way of Allah.

Malik bin Aws bin Hadthan Al-Nasri narrates that Umar bin Khattab (may Allah be pleased with him) had called him (he was present in the service of the Commander of the Faithful) when the guard of the Commander of the Faithful, Yarfa’, came and said:“Uthman bin Affan, Abdur Rahman bin Awf, Zubair bin Al-Awwam, and Sa’d bin Abi Waqqas (may Allah be pleased with them) wish to come in. Do you permit them?”The Commander of the Faithful said:“Yes, let them in.”After a short while, Yarfa’ came again and said:“Abbas and Ali (may Allah be pleased with them both) also seek permission. Do you allow them to enter?”He said:“Yes.”When these two elders also entered, Abbas (may Allah be pleased with him) said:“O Commander of the Faithful! Decide between me and him (Ali, may Allah be pleased with him).”They were disputing over the property which Allah Almighty had given to His Messenger (peace and blessings be upon him) as Fay’ from the wealth of Banu Nadir. On this occasion, Ali and Abbas (may Allah be pleased with them) spoke harshly to each other and criticized one another, so those present said:“O Commander of the Faithful! Decide between these two elders so that no dispute remains between them.”Umar (may Allah be pleased with him) said:“Do not be hasty. I ask you by Allah, by whose command the heavens and the earth are established, do you know that the Messenger of Allah (peace and blessings be upon him) said: ‘We, the Prophets, do not leave inheritance; whatever we leave behind is charity,’ and by this, the Messenger (peace and blessings be upon him) meant himself?”Those present said:“Yes, the Messenger (peace and blessings be upon him) said this.”Then Umar turned to Abbas, Ali, and the rest (may Allah be pleased with them) and said:“I ask you both by Allah, do you also know that the Messenger of Allah (peace and blessings be upon him) said this hadith?”Both elders replied in the affirmative. After this, Umar (may Allah be pleased with him) said:“Then I speak to you about this matter. Allah, the Exalted, had given His Messenger (peace and blessings be upon him) this Fay’ property (which was obtained from Banu Nadir) especially for him. Allah, the Exalted, said about it: ‘Of the goods which Allah has given to His Messenger from them (Banu Nadir), you made no expedition with either cavalry or camelry (i.e., you did not fight for it), but Allah gives power to His Messengers over whom He wills, and Allah has power over all things.’ So this property was specifically for the Messenger of Allah (peace and blessings be upon him), but by Allah, the Messenger (peace and blessings be upon him) did not keep it exclusively for himself, nor did he prefer himself over you. First, he gave you from this property and distributed it among you, and finally, this property remained from the Fay’. Thus, he used to take out the annual expenses for his pure wives from it, and whatever remained, he would spend in the ways of Allah, the Exalted. The Prophet (peace and blessings be upon him) spent this property in these ways during his lifetime. Then, when he passed away, Abu Bakr (may Allah be pleased with him) said: ‘I have been made the successor of the Messenger of Allah (peace and blessings be upon him).’ Therefore, he took it into his possession and spent it in the same ways as the Messenger of Allah (peace and blessings be upon him) used to spend, and you people were present. After that, Umar, Ali, and Abbas (may Allah be pleased with them) turned to each other, and he said:“You know that Abu Bakr (may Allah be pleased with him) also adopted the same method, as you also acknowledge, and by Allah! He was truthful, sincere, on the right path, and a follower of the truth in his conduct.”Then Allah, the Exalted, took Abu Bakr (may Allah be pleased with him) as well. I said:“Since I have been made the successor of the Messenger of Allah (peace and blessings be upon him) and Abu Bakr (may Allah be pleased with him), I have possessed this property for two years of my caliphate and spent it in the same ways as the Prophet (peace and blessings be upon him) and Abu Bakr (may Allah be pleased with him) did, and Allah, the Exalted, knows that I too am truthful, sincere, on the right path, and a follower of the truth in my conduct. Then you both came to me; you both are one and your matter is one. Then you came to me.”(By this, Umar meant Abbas, may Allah be pleased with him.)“So I clearly told you both that the Messenger of Allah (peace and blessings be upon him) said: ‘Our inheritance is not distributed; whatever we leave behind is charity.’ Then, when I give this property to you both for management, I said to you: If you wish, I can give this property to you, but on the condition that you fulfill all the responsibilities of the covenant made before Allah, the Exalted. You know the method that the Messenger of Allah (peace and blessings be upon him), Abu Bakr (may Allah be pleased with him), and I myself, since I became caliph, have adopted regarding this property. If you do not accept this condition, then do not discuss this matter with me. You both said: ‘Fine, hand over this property to us on this condition.’ So I handed it over to you. Do you want any other decision from me in this matter besides this? By Allah, by whose command the heavens and the earth are established, I cannot make any other decision until the Day of Judgment. If you are unable (to manage it according to the condition), then return the property to me, and I will manage it myself.”