The Prophet (peace and blessings be upon him) is reported to have said, “When a son of Adam passes away, he is cut off from his deeds except for three things: a current or perpetual charity, good knowledge that benefits someone, and a good child who makes du`a’ (supplication) for him.”
Sheikh Ahmad Kutty, a senior lecturer and Islamic scholar at the Islamic Institute of Toronto, Ontario, Canada, states: “it is the view of the majority of Muslims, including the scholars of jurisprudence and Hadith, that we are allowed to read the Qur’an on our own volition and donate the rewards for the dead parents or relatives or friends. If we do so, Allah being generous, we believe He will not refuse to send such rewards to them.
Therefore, you may read any part of the Qur’an and pray to Allah to send rewards for any of your dead parents, relatives, or friends you may wish. Since Yaseen is an important surah of the Qur’an and is often referred to as the heart of the Qur’an, there is no reason to exempt it. There is also a report from the Prophet (peace and blessings be upon him) which states, “Read Yaseen on your dead ones!” Although some scholars take this hadith to mean that it refers to the time of dying as opposed to the time after death, there is no need to stop anyone from reading it even if we were to accept the above interpretation.
Having said this, however, I must hasten to add the following:
Reading Qur’an in return for payment for this purpose is considered a bid`ah (innovation). Likewise, it is also wrong to consider this as part of prescribed Islamic funerals.”