Ours is a joint family and recently my grandfather has expired (and my grandmother long ago), we have some inherited wealth (cash deposits in the nationalized bank). Now we need to continue to run the family as before, so I am thinking to create a joint account in bank and transfer the amount from my grandfather's account to the joint account. However I have few fears about the future, I belong to the 3rd generation and let's say there are siblings A, B, C, D, E and there kids w, x, y , z (E has no kids). Further few people have separated from the family long back (C, D) and they agree to be not part of this joint account. So what i need to do is create a joint account for A, B and E and transfer the money to this account and in the long run after A, B & C, money should get transferred to W and X without any legal hurdles. So I am thinking to create a joint account in the name of A, B and E, further make W and X as nominees. So please let me know whether its sufficient or is there any possibilities in future either C or D ,or their legal heirs could create problems? Please note ours is Hindhu joint family and today everyone agrees with this plan, only my fear is in future if someone changes their mind or some legal heir gets married and opinion changes, … etc. Thanks in advance.
Apply for and obtain succession certificate in name of A, B , E
2) C and D can execute consent affidavit
3) you would get Succession certificate within 6 months
4) thenoperate bank account in name of A, B E
5) make children nominees
6) execute will in favour of children
The creation of joint account with or without consent of all co sharers is not a solution here.
If all of agree on any common formula like making a new joint account then first make a mutual deed of partition a and then register it.
This will effectively put all the future dispute on division of property at rest and you need not worry much if any of you retract from initial committeemen.
If your grandfather has not appointed any one as his nominee then cash in his account will be treated as ancestral property, which can be claimed by all the legal heirs as per their right as provided under Hindu succession Act 1956 and therefore if you want to open another joint family account in the name of few of the legal heirs to the exclusion of others and you want to avoid any kind of hurdle which may be created later on by excluded legal heirs then you must obtain their NOC or relinquishing deed in respect of their rights to have share in the said property.
Include C and D into the joint account or let them execute a confirmation deed stating that they shall not claim any rights over the joint family proper or the amount deposited in their fathers account in the Bank.
Dear Client,
You are 3rd generation and 4th generation is also in the line. AND the monies resting in account converted into ancestral property being great grand father`s, as passes undivided.
By coparcenary right, all heirs including w, x, y , z have equal share now, You can`t take away their share with the consent of other heirs, even with their parents except with the leave of court.
Thanks for all of your legal advice, however i have one basic question regarding the rights of bank account transfer, If a person A makes person B as a nominee then in that case after the demise of A does B is the absolute successor of the account or is there any chance other legal heirs can claim the succession too? (Assuming A only makes B as nominee without any legal documents like deed or affidavit from other heirs , also assume money that A has in account is self earned and A is father of B)
Nominee is only trustee for legal heirs
2) B would not be absolute owner of money lying in the bank account
3)other legal heirs can claim said amount
4) execute will in favour of B
Only the nominee can claim money on the demise of the account holder, if any dispute rises between the members that shall have to resolved amicably or through Court only.
Dear Client,
Right of nominee restricted up to receive the monies in hand, distribution will be acc. to succession act. Law is very clear.
Nominee is appointed to protect the subject matter, until legal heirs claim the right over it.
The amount left behind by your grandfather can be deposited to the HUF account.
The hidden danger in this is that all the coparceners are entitled to an equal share in the properties whether immovable or movable lying in the HUF.
You can consult your auditor for the modalities for transferring the same accordingly.
Thanks for all of your legal advice, however i have one basic question regarding the rights of bank account transfer, If a person A makes person B as a nominee then in that case after the demise of A does B is the absolute successor of the account or is there any chance other legal heirs can claim the succession too? (Assuming A only makes B as nominee without any legal documents like deed or affidavit from other heirs , also assume money that A has in account is self earned and A is father of B)
The bank has to disburse the amount lying in the name of the deceased account holder to the nominee of the deceased.
The nominee is a trust to the amount received, hence he may further disburse the amount to all the legal heirs as per law.