In the legal context, the appointment is only a provision for the claim of property by the nominee as “custodian” in the event of the death/death of the owner of the property. In this scenario, however, there are some important aspects to consider: if no legitimate heir claims the assets, the nominee is obliged to keep them permanently. Indian law does not provide for a time limit within which the legal heir must claim ownership. You can nominate a candidate by completing the relevant application forms and submitting them to the relevant companies if you did not do so at the time of acquiring the assets. In the absence of a declared will or legal heir, under the Hindu Succession Act 1956, the property is divided equally into the following scenarios: When opening an ETH account, a candidate must be specified. This candidate inherits the fund. The legal heir has no right to this. However, if the nominee is a person other than those mentioned above, the general rule prevails, i.e. the nominee is only the guardian until the legal heirs claim the insurance money. Note that the policyholder does not have to nominate an advantageous candidate. The legal heir, unlike the nominee, is the person who has the right and authority to take over the property and property of the deceased person in accordance with the signed legal will and the applicable personal inheritance law. The legal heir is clearly mentioned in the will by the deceased person as the key heir. The legal heir can be one person or several people.
What happens to mutual funds if there are co-owners? If shares in investment funds are transferred to nominees, can they then be transferred to the legal heir? In the case of some AMS, they ask for a refund because they claim that the mutual funds are not transferable. Is there a step back by Mr. Hemant and/or someone else with personal experience? Otherwise, legal heirs must provide several proofs, such as a death certificate and proof of relationship to the deceased, among others. When the investor or owner prepares a will, it is best to distribute the assets after his death in order to avoid all these complications for the legal heirs. A nominee is a custodian/agent of the assets who is not the owner, but a person who is legally obliged to transfer the asset to the legal heirs. To respond to your later request regarding your brother claiming FD without the original documents, please note that he cannot do so legally. However, to exclude it, you can write to the bank where the FD is maintained, inform it of the death of the owner of the FD and have also submitted a request to receive “comfort letters” from one of the testator`s legal heirs and that no action will be taken without first informing all the legal heirs of the deceased. The Indian judicial system was faced with the difficult question of whether the legal successor or candidate had rightful ownership of the assets (including shares/securities, real estate, etc.). Due to the lack of clarity on this legal issue, nominees and legal heirs have been forced to turn to the courts, which has led to the legal principle that nominees only hold assets in the name of the legal heirs of the deceased and that the mere appointment of shares does not imply beneficial ownership of an asset.
What if the person is single and has their sibling as a candidate? Term deposit – Legal heirs receive ownership from the FDs upon the depositor`s death. The candidate will again only be an administrator. It can be observed that the nominee is only a trustee of the property, who must hand it over to the legal heir of the property on the basis of the will of the deceased. Candidates are named in term deposits and other investments only because the real investor`s funds are not withheld by banks or other organizations and transferred to someone the investor can trust. It also guarantees the investment that the nominee will ensure that the assets are smoothly distributed to all legitimate heirs. However, a will can only be made for property acquired by you, not for ancestral property. Future assets due to the testator after the execution of the will may also be inherited. The testator`s will takes effect after his death and can only be annulled during his lifetime.
A word of warning: the testator cannot donate his property to charity and thus deprive his family of the inheritance without providing such disinheritance with very good reasons that would stand up to legal scrutiny. A will, also called a will, is a legal document in which a person, known as a testator, appoints one or more executors to administer their estate and prepare for the transfer of their property after their death. In India, anyone over the age of 21 can draw up a will. In Ramdas Shivram Sattur v. Rameshchandra and others, the Bombay High Court, in finding the legality of the candidate, held that section 30 of the Act, which provides for the transfer of interests on the death of a member, does not set out any special rule of succession distinct from the rule of succession under the law of persons. He goes on to say that the role of a validly appointed agent in relations with the company is only to represent the legal heirs of the deceased member and that no interest is created in the assets for the benefit of the nominee, excluding those who have a legal right to the estate of the deceased member. The Honourable Bombardier shared this view. Without presenting a certificate of inheritance, all institutions, including banks, transfer assets to the nominee. In the meantime, the family will not be able to access or repay the investments. Therefore, it is important to regularly review and update all details of the nomination.
Real Property – Legal heirs receive ownership rights to real property in the event of the death of the original owner. The nominee is a trustee of the deceased`s estate until the estate passes to the true owners.
