• Bank account nominee

My mother owns a bank account with a very large amount of money. She lives with my brother and his family because I am single and travel frequently for my job. She is very old and in very poor health. Due to pressure from my brother, she designated him as the nominee on the bank account. It is her wish that after her death the money in the bank account be divided equally between my brother and I. But she also worries that my brother will just take all the money and not give me anything. She has overheard my brother plotting with his wife to do the same. I am also worried that after my mother's death, my brother will simply take control of the account and electronically or otherwise transfer all the money to his account. I understand that there is a recent Supreme Court decision prohibiting a nominee from owing all the money and that a nominee's role is merely to distribute the money to all legal heirs. However, if my brother takes all the money, I would have to go to court to get it my share which could take many years. What can I do to prevent my brother from taking all the money after my mother's death?
Asked 4 years ago in Property Law
Religion: Hindu

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21 Answers

See your brother won't able to withdraw money from the bank till you give a no objection certificate to your brother he has a succession certificate in both cases your consent is required.

The bank follow procedure of indemnity bond and no objection certificate from all legal heirs to disburse fund in name of the nominee for legal heirs.

Please refer the below link rbi has made it clear so he will require a Succession certificate or a noc from you.

https://m.rbi.org.in//scripts/NotificationUser.aspx?Id=2284&Mode=0

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Sir

Nominee is only a facilitator to receive the money... your mother can execute a WILL at home specifying as to how her money need to be shared in the presence of witnesses.. that will solve the issue. If that doesn't happen still all her legal heirs will be entitled for equal share..

Sricharan Telaprolu
Advocate, Hyderabad
156 Answers
67 Consultations

4.9 on 5.0

1) nominee is only trustee for legal heirs

2) on your mother demise write to bank to not release funds lying in bank to your brother

3) obtain mother death certificate

4) apply for and obtain succession certificate from district court

5) mother can also execute will bequeathing money lying in bank account to you and your brother jointly

6) duplicate copy of willshould be in your possession

Ajay Sethi
Advocate, Mumbai
87932 Answers
6207 Consultations

5.0 on 5.0

Just because he is made a nominee your brother will be having an easy access to the money in her account after her lifetime.

Therefore to avoid giving him an opportunity to legally Swindle the money, your mother may change the nomination and nominate you as her nominee to the account.

It is not necessary that the nominee to be always present with the account holder.

You can decide and plan things when they are still under control.

T Kalaiselvan
Advocate, Vellore
78089 Answers
1543 Consultations

5.0 on 5.0

Hi.

As correctly pointed out, a nominee is only a trustee and not legal heir.

It is the pristine duty of the nominee to distribute the monies of nominator to his/her legal heirs after their life time.

In order to avoid any future complications,

1) your mother can execute a registered will bequething her monies lying in her bank account to the person or persons she wishes to distribute or

2) she can add you as a nominee(in addition to your brother) in the bank account and both of you can be joint nominees.

2nd option is easy to implement and can prevent unauthorised withdrawals by nominees after the life time of your mother

or

3) yourself or your mother can also submit a letter to bank wherein you can always direct the bank to make payment only on production of succession certificate or letter of administration by legal heirs of your mother. pls ensure to take acknowledgment of the letter by bank so as to hold bank responsible in event of any mischief.

hope this information is useful

Rajgopalan Sripathi
Advocate, Hyderabad
2169 Answers
394 Consultations

5.0 on 5.0

It is normie is like a trustee. Nominee has no power to withdraw money and utilise it as he is the owner of that money. Nominee is bound to distribute the money among all the legal hairs of the account holder. If the nominee does not distribute the money you should file a civil suit before the concerned civil judge junior division for distribution of money

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

4.9 on 5.0

If you think that your brother may utilise this money then immediately after death of your  mother you should file a civil suit and take temporary injunction against the withdrawal of money from your mother's bank account.  after passing of temporary injunction nominee cannot withdraw the amount without taking prior permission of the court.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

4.9 on 5.0

If there are no chances of appointing you as a nominee, then, advise your mother to withdraw the cash and distribute when she is alive. Once she is no more, your brother may have all rights over the cash as your mother is residing with him and none of the SC judgments may be in favour of you as law is not uniform.

Rajaganapathy Ganesan
Advocate, Chennai
2085 Answers
8 Consultations

4.9 on 5.0

1) You can take Injunction from court for with of amount and later on take succession certificate from court and than distribute all amount within all legal heirs.

Ganesh Kadam
Advocate, Pune
12335 Answers
191 Consultations

4.9 on 5.0

Ask your mother to draw up a Will in which she desires that the money in her bank account be distributed equally between her two sons. Also she can make joint nominations in favour of you and your brother and allocate the amounts lying to the credit in her account in equal proportions between the two nominees. The Will has to be proved after your mother passes away by filing a petition in court. So even if there arises any complication in that petition, the joint nomination will take care of your situation.

Yusuf Rampurawala
Advocate, Mumbai
6881 Answers
79 Consultations

5.0 on 5.0

Hello,

Ask your mother to execute a will, writting thereupon that the money in the bank account will be divided equally amongst you two.

Get the will probated after her death and divide the money amongst yourself.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

The nominee acts as a trustee for all the legal heirs, and cannot, therefore, claim any exclusive right over the bank accounts of the deceased. Better to put the bank on notice immediately upon happening of the eventuality about your intention of challenging your brother's claim in a court of law.

Swaminathan Neelakantan
Advocate, Coimbatore
1920 Answers
20 Consultations

4.9 on 5.0

Dear Client,

Ask your mother to execute WILL, clearly mentioning how much property/money will inherit between brothers.

After her death, u can file for succession certificate and seek injunction against withdrawal of money.

Nothing recent, its clear law, nominee vest with authority to receive monies in his hand on behalf of legal heirs,

Property will devolved acc. to Hindu Succession Act than.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

- In case of death of the depositor, the nominee is eligible to claim the amount held in the deposit account along with interest.

- The Supreme Court (SC) has clarified the nominee of a depositor in a bank does not get ownership of the money in the account after death of the depositor.

- According to Section 45ZA of the Banking Regulation Act , the nominee gets exclusive right to receive the money lying in the account. It gives him all the right of the depositor as far as the depositor's account is concerned, But the banking law is not concerned with the succession. The money in the account will form part of the estate of the deceased depositor and devolve according to the rules of succession.

- Hence,as your brother is nominee in the account of your mother, the bank will not hesitate to release the amount after the sudden demise of your mother. However, certain bank ask for declaration from the nominee.

- Your mother can nominate more than one her legal heirs i.e.you. or she can also move an application for the same to the bank .

- OR you can also inform the bank for not issuing the amount to the nominee because he has not obtained the ownership of the amount being nominee.

- If,bank deny to do the same as per your wish, then you will have to file a case in the court of your jurisdiction for stopping the release of the amount after her life.

Mohammed Shahzad
Advocate, Delhi
9895 Answers
121 Consultations

5.0 on 5.0

You can change the nomination in the bank and you can be the nominee. You can execute the will of your mother and get it Registered.

Prashant Nayak
Advocate, Mumbai
27261 Answers
88 Consultations

4.4 on 5.0

Nominee is only trustee for legal heirs

2) banks generally decline to transfer funds to nominee without noc of other legal heirs

3) if amount lying in bank account is large sum of money banks insist on succession certificate if other legal heirs refuse to give NOC

4) apply for and obtain succession certificate

5) issue legal notice to bank not to transfer funds to the nominee

Ajay Sethi
Advocate, Mumbai
87932 Answers
6207 Consultations

5.0 on 5.0

If nominee is there, then no need for any succession certificate. Bank is right

Brother will hold money as a trustee. He has to give your share. If he runs away you can file a criminal complaint

Yusuf Rampurawala
Advocate, Mumbai
6881 Answers
79 Consultations

5.0 on 5.0

Sir when nomination are there bank doesn't ask for succession certificate as such but ask for NOC generally from the legal heirs in absence of that to be fully satisfied before disbursing funds bank can ask for succession certificate,

See if bank is not asking for both from him directly disbursing funds you apply for the succession certificate and take a stay on the disbursement of the funds.

that would be civil dispute and a suit for same has to be filed for your share, though a complaint for breach of trust can be filed in police.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Yes, the bank's contention is correct in accordance with the Nomination Rules. Once somebody is nominated by a depositor, the bank gets a good discharge legally if it pays the nominee upon a claim following the depositor's death.

In a sense yes. You may make out a case of criminal breach of trust based on admissible evidence.

Swaminathan Neelakantan
Advocate, Coimbatore
1920 Answers
20 Consultations

4.9 on 5.0

One of you stated that my brother who is the nominee will require a succession certificate and NOC from me before the bank will disburse the funds to him. But the bank informed me that it is not the case as he the nominee can simply withdraw the funds without any succession certificate or NOC. The bank further stated that the purpose of the nominee is to avoid the production of the succession certificate and NOC from the legal heirs. IS THE BANK CORRECT?

The bank is correct in its statement that the nominee is authorised to withdraw all the amount that had been left in the account of deceased.

However the other legal heirs can make a claim to the bank for this if the nominee is not ready to share the amount among the legal heirs.

Nominee is the trust to receive such amounts on behalf of the legal heirs.

Second, if my brother as the nominee runs away with the money without giving me my share as my mother's legal heir in the absence of any will, IS THAT A CRIMINAL OFFENSE?

It will not fall under criminal offence, however you can file a suit for recovery of your share in that amount

T Kalaiselvan
Advocate, Vellore
78089 Answers
1543 Consultations

5.0 on 5.0

Nomminnee can not take away the rights of the legal heir.

if he does so then you will have to file a civil suit to claim your money.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

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