How a lady can switch shares to her son on dissolution of HUF
What are the steps {that a} lady must take to switch shares to her son upon the dissolution of a HUF (Hindu undivided household)?
—Name withheld on request
The question infers that the HUF is proposed to be dissolved and subsequently some fairness shares held by the HUF are to be distributed/ transferred to the son, who’s a coparcener of the HUF.
It is vital to notice that dissolution of HUF can occur after partition of properties of the HUF. In order to provide impact to a partition of an HUF, a deed of partition recording the entitlement of every coparcener of the HUF within the HUF properties/ belongings is required to be executed by all the prevailing coparceners of the HUF.
Therefore, on this case, a deed of partition recording the son’s entitlement to such shares must be executed after which such shares held by the HUF must be distributed/ transferred to the son.
My father, who was the karta of our HUF account died one month in the past. Now, I need to proceed with the identical account by altering the title of karta, however the financial institution refuses, saying that account has deposit of greater than ₹1 lakh. Please counsel what I ought to do subsequent.
—Name withheld on request
Your question infers that you’re the eldest coparcener of your father’s HUF. Upon the dying of a karta, the eldest coparcener can turn into the karta, put up which the financial institution’s information could be up to date. Here, the banks ask for a replica of the dying certificates and the consent / no-objection of the opposite coparceners of the HUF within the format prescribed by them.
Upon submission of those paperwork, the banks replace the title and signature of the karta of their information which allows continuity and operational ease of the identical checking account of an HUF.
The quantities mendacity within the HUF’s checking account shouldn’t be crucial for such change of title. If you’ve gotten complied with the above (i.e. supplied the consent/ no-objection of different coparceners) however the financial institution is refusing to vary the title of karta, we advocate that you simply provoke formal correspondence with the financial institution to know the compliance necessities and accordingly adjust to the identical.
Rishabh Shroff is associate & co-head, Private Client, Cyril Amarchand Mangaldas.
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