Fiqh-us-Sunnah Volume 4, Funerals and Dhikr, Fiqh 4.035B.

A person who dies and leaves some money behind should have his shroud purchased with his money. If the deceased did not leave any money, then, whoever is responsible for taking care of his living expenses should provide his shroud. In case the deceased leaves no money and there is no one to take care of him, then his shroud should be purchased by the Public Treasury of the Muslims. Otherwise individual Muslims should take care of it. The same applies in case of both the males and the females.

Ibn Hazm said: “The cost of a woman ‘s shroud and the digging of her grave should be met out of her own money. Her husband is not obliged to pay for it, for the properties of Muslims are forbidden to be used except by the authority of the Qur’an or sunnah.

The Prophet, peace be upon him, said, “Verily, your blood and property are sacred and are forbidden to each other.” Allah, the Exalted, imposed on a husband the responsibility of providing his wife with food, clothing, and housing. The shroud is not synonymous with clothing, according to the language in which Allah chose to address us, nor is the grave equivalent to housing.