NEW DELHI : Keshav Singhania & Roopal Bajaj
Is the nominee of a checking account, mounted deposit, financial institution locker, and different investments routinely qualify to be the proprietor of such property within the occasion of the demise of the unique holder?
-Atit Dalal
A nominee shouldn’t be the authorized proprietor of such asset and might solely maintain the asset in fiduciary capability for the advantage of the authorized heirs, both decided by the use of a will or as per related succession legal guidelines.
In essence, a nominee is a person appointed by the asset proprietor to carry the asset in good stead as an interim association, till duly succeeded by the authorized heirs and at no level has absolute title to the asset. Legal heirs are the rightful financial proprietor of the property of the deceased. A nominee’s proper will probably be on a decrease pedestal vis-à-vis the rights of a beneficiary beneath a will and a will would prevail over nomination.
Fixed deposits and financial institution accounts may be held singly or collectively. Joint holding (in case of two or greater than two holders) is purposeful through ‘jointly’ or ‘either or survivor’ or ‘former or survivor’ and ‘anyone or survivor’.
In the occasion of demise of one of many mounted deposit/ checking account holder, the proceeds will probably be transferred foundation the underlying mode of operation, protecting in perspective that rules of nomination can by no means override the legal guidelines of succession, i.e. surviving holder merely acts because the custodian of the property till the authorized heirs undertake the needful. The similar has additionally been upheld by varied Indian courts.
Are the grandchildren of a Karta additionally part of his Hindu Undivided Family (HUF)? Does it make any distinction if the grandchildren are the offsprings of his married daughters (and never of sons), and if they’re feminine offspring?
—Name withheld on request
In accordance with the Hindu legislation, a joint Hindu household consists of all individuals lineally descended from a typical ancestor and embrace their wives and single daughters. These members of the family can additional be categorized as members and coparceners.
The idea of Hindu coparcenary, nonetheless, is way narrower. It includes the propositus (the particular person from whom the road of descent begins) and three generations of lineal descendants.
Following a 2005 modification, daughters of coparceners at the moment are acknowledged as coparceners by beginning, in the identical manner as sons. In a landmark choice, the Supreme Court affirmed that this modification aimed to make sure equal rights for daughters.
Consequently, daughters additionally possess equal coparcenary rights inside their grandfather’s HUF.
However, additionally it is important to acknowledge that the legislation shouldn’t be fully clear concerning whether or not the kids of daughters would have rights of their maternal grandfather’s HUF. Consequently, it might be prudent to hunt applicable authorized steering when coping with instances involving such conditions.
Keshav Singhania is non-public consumer chief, Singhania & Co. LLP, and Roopal Bajaj is leader-funds, Singhania & Co.
“Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!” Click right here!
Catch all of the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.
More
Less
Updated: 01 Oct 2023, 10:05 PM IST
