In tie-in material from the film’s original release, it’s specified that the dwarfs would scatter sacks of gems right and left, so that “even the beggars and orphans and widowed mothers might have a happy Christmas.” Evidently, when Grimhilde came into reign, all this was changed and she decreed that the dwarfs should be driven out of the Seven Jeweled Hills, so that their jewels and gold might pour into her already overflowing coffers. They went back to the hills immediately, launched their little boats, heavily ballasted with precious jewels, and sailed away from the underground river. All sailed away but the seven brothers, the seven dwarfs, who lived apart from them in the quaint little house in the hills.
I believe, once Snow White married the Prince and moved to his castle, she signed over the rights to her father’s castle to the seven dwarfs. She would entrust their reign over her lands to ensure each orphan would be treated especially well, to bring back the dwarfs that sailed elsewhere and make it a type of sanctuary for those who had been forced out of these lands previously, and that the distribution of wealth should revert to what it had been when her kind mother and jovial father had been in power.
However, she’d see to it that no one would be made to enact as a servant. Snow White doesn’t feel that you should ever live in a place you, yourself, couldn’t clean and she feels the use of inflicting menial labor on another is cruel. It also gives her the perfect reason to visit the dwarfs as often as she likes, overseeing how clean they’re keeping the quarters, and rolling up her sleeves and joining in on the fun whenever she could!
