Question
I had two brothers who were killed and my parents got an amount of money from the governmental authorities as a compensation or blood money. Is it permissible for any of their brothers who performed Hajj beforehand to use this money to perform Hajj on their behalf? May Allah bless you.
Answer
All perfect praise be to Allah, the Lord of the worlds. I testify that there is none worthy of worship except Allah, and that Muhammad is His Slave and Messenger.
There is no harm if any of your brothers perform Hajj on behalf of your dead brothers by using the abovementioned money if that person has already performed Hajj for himself. The Prophet heard a man performing Talbiyah (The Hajj-related chant) on behalf of a person called Shubrumah, so he asked: "‘Who is Shubrumah?” The man said, “He is a brother (or a relative) of mine.” The Prophet said: ‘Perform Hajj for yourself first, then perform it for Shubrumah.’" [Abu Daawood and Ibn Maajah] [Ibn Hibbaan: Saheeh (Authentic)]
The money that will be used for Hajj is lawful and does not include any doubt as the blood money is the right of the inheritors that Allah The Almighty made lawful for them to take. Thus, taking from this money to perform Hajj is permissible.
The Fatwas (rulings) of the Permanent Committee include the following:
"It is permissible to perform Hajj from the blood money for every inheritor from his own share if he is competent for religious assignment."
As long as it is permissible to perform Hajj for one's self from the blood money, it is permissible to perform Hajj on behalf of the dead person provided that one has already performed Hajj for his own self, as we mentioned before.
You should also know that if your brothers were capable of performing Hajj and they did not perform it before their death, it would be obligatory to perform Hajj on their behalf from their estate.
And Allah knows best.