Al-Muwatta Hadith 38.25

Malik related to me that he had asked Ibn Shihab about a slave who was released. He said, "He gives his wala' to whomever he likes. If he dies and has not given his wala' to anyone, his inheritance goes to the muslims and his blood-money is paid by them." Malik said, "The best of what has been heard about a slave who is released is that no one gets his wala', and his inheritance goes to the muslims, and they pay his blood-money." Malik said that when the slave of a jew or christian became muslim and he was freed before being sold, the wala' of the freed slave went to the muslims. If the jew or christian became muslim afterwards, the wala' did not revert to him. " He said, "However, if a jew or christian frees a slave from their own deen, and then the freed one becomes muslim before the jew or christian who freed him becomes muslim and then the one who freed him has become muslim, his wala' reverts to him because the wala' was confirmed for him on the day he freed him." Malik said that the muslim child of a jew or christian inherited the mawali of his jewish or christian father when the freed mawla became muslim before the one who freed him became muslim. If the freed one was already muslim when he was freed, the muslim children of the christian or jew had nothing of the wala' of a muslim slave because the jew and the christian did not have the wala'. The wala' of a muslim slave went to the community of muslims.