Hi, I recently lost my father. He has few FDs and I am the nominee on them. However, I would like to know if my mother can be made legal heir (We are hindu) and FDs can be transferred to her? If yes, then how can a nominated person (its me) transfer the FDs to legal heirs (in my case, my mother)? Is there any legal process or I can just take it granted and can transfer proceedings (FD maturity amount) to her bank account? thanks for the assistance with these queries. Regards, Ravi
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your mother should apply for and obtain succession certificate from district court . enclose father death certificate , schedule of FD lying in bank
2) you can file consent affidavit that you have no objections that SC be issued in favour of mother for money lying in FD in bank
3) court would issue SC in favour of mother and money lying in FD can be transferred in her name
Nomination dose not give any special inheritance right, On father intestate death his assets will inherit in you and mother equally.
But nominee can withdraw it and execute fresh FD in mother name.
Nomination is not ownership it's a just Trusteeship. If your father has a will it will be divided as per the will. Else she needs to submit the death certificate and your noc to bank for claiming it. In some cases bank may also ask for legal heirship or succession certificate.
Better is to draw the amount of FDs as a nominee and deposit it in the name of your mother in SB or FD A/C as you wish because power of change of nominee was vested in your father and he is no more so don't hesitate and get the work done as suggested.
Dear Sir,
The following information may kindly be read:
Rights of nominees and legal heirs
There is a general perception, that the nominee becomes the owner of the asset, once it is transferred in his name or is handed over to him. However, the rule is subject to a few exceptions, that the nominee becomes a trustee to hold the property on behalf of the legal heir.
Under the Insurance Act, an insurance company is discharged of its liability, once it pays the amount of claim to the nominee. It is the responsibility of the nominee, to hand over the claim amount to the legal heir/s. The judiciary has made this amply clear. The Supreme Court, in the case of Sarbati Devi, which was decided in 1983, held that the nominee is a trustee of the property and is liable to hand it over to the legal heirs. This applies to deposits in bank accounts, as well.
Those who reside in cities, often have their residential properties in cooperative housing societies. Such properties are governed by the cooperative society laws that are applicable in each state. According to Section 30 of the Maharashtra Cooperatives Societies Act, for instance, the society is legally allowed to transfer the property in the name of the nominee, in case the owner has submitted the nomination form to the society, in respect of that property. However, such a nominee, who is registered as the owner of the property in the records of the housing society, represents the legal heir/s. It is only the legal heir/s, who have the beneficial ownership rights of the flat, ruled the Bombay High Court, in the celebrated case of Ramdas Shivram Sattur in 2009, which dragged on for 25 years.
In the case of provident fund dues, the law provides that the nominee becomes the legal and beneficial owner of such property. The Bomaby High Court, in the in the case of Saraswat Bank Limited, had decided that the nominee becomes the absolute owner of share but the the same has been overruled in the later case of Shakti Yezdani and Anr vs Jayanand Jayant Salgonkar, decided on December 1, 2016, again by the Bombay High Court. So, even in case of shares in a compay, the rights of the legal heirs are better than that of nominees and the nominee is accountable to the legal heirs/successors.
Importance of nominating
Home owners should make nominations for all their assets, wherever such a facility is available. As the nominee/s are also the legal heir/s in most of the cases, the making of such nominations, will help transfer of the asset to the legal heir/s. Even in other cases, it will ensure that that the property does not remain unclaimed or become subject to litigation. While making a nomination for shares and provident fund dues, one needs to remember that the nominee will become the owner of these assets.
After realization transfer to her account .
Regards
G.Rajaganapathy
Lawyer
High Court of Madras
a nominee is a trustee and not the owner of the assets.
It is mandatory to get succession certificate to prove that you are legal heir of your father. You will have to move in court for to obtain the certificate it is a process of about two or three months.
See you and mother both are legal heirs of your father, as you are nominee you can submit required documentation before bank and can gift the amount to mother .
The bank shall first credit it to you then you can freely transfer same.
You can first take FD's on your name and later you can transfer to your mother's name all FD's.
1. The Banks are legally bound to transfer the FD proceeds ONLY in the Nominee's name registered in their records.
2. AFTERwards you can simply transfer /gift the amount to your mother.
The nominee only acts as a trustee for all the other legal heirs, and shall not automatically succeed to the deceased's assets. In your case, if the deposit has matured, you may submit a claim under the nomination, withdraw the deposit and transfer the proceeds to your mother.
- Since, you are nominee, hence after the demise of your father , you are eiligible to get the amount of fixed deposits along with interest.
- You should approach the bank with an application , alongwith death certificate, and identity proof.
- Further, you should know that a nominee is olnly a trustee for the deceased person and he has no absolute authority to own and enjoy the properties held by the depositor. In case of any demand by the legal heirs, the nominee is bound to settle the amount in their favour.
- Being the legal heirs, you both have the absolute authority to enjoy the properties of the deceased.
- So, dont be confused and ask the bank to transfer the amount in your account , and further you can proceed to transfer the same in your mothers name.
Good luck and dont forget to rating Positively.
A nominee is just a custodian of funds in bank accounts of deceased person.
So the fund generally belongs to legal heirs of deceased so yes you can transfer the fund to your mother account if you both are only legal heirs of your father.
Being a nominee you can collect the FD amount from the bank and it is your duty to distribute the same to the legal heirs of the deceased account holder.
You being one of the legal heirs you can relinquish your rights over this and transfer your share also from the FD amount in favor your mother to her account.
Thank you all, for your advise on my question. Really appreciate it. So as everyone mentioned, I can collect it from Bank (I too confirmed that banks will only give to me as I am the nominee) and then transfer the amount in my mother’s name or new FD in my mother’s name. Like everyone mentioned, I am only the custodian of these FDs, so can I just transfer to mother’s bank account or WILL I HAVE TO GIVE TO ALL LEGAL HEIRS? In this case, me and my mother are not the only legar heirs. We are 5 (my mother, son 1, son 2, and daughter 1 – all married). Personally I want entire amount to go to my mother. If others too want to relinguish their right over this and transfer the entire share from the FD amount in favour of my mother to her account, DO I STILL NEED TO CREATE ANY LEGAL DOCUMENT? Or simply transfer the amount to my mother’s account?
All have to give their noc by way of Gift. Have to show in their returns.
Gift of movable assets dose not require legal documentation. Just execute MOU gifting all to mother.
The FDs devolve equally on all the legal heirs.
You can relinquish your rights alone in it, you cannot force others to relinquish their rights in it.
If they volunteer to relinquish their rights then they may have to give a no objection for transferring the entire amount to your mother's name.
With the above documents you can safely travel to accomplish your desire to transfer the entire amount to your mother's name.
You have to give other legal heirs if there are other legal heirs too other then you and your mother.
See.you can give your share to.mother to.others you have to.give there share.
See you need to.take affidavit.and consent from you.
All legal heirs have equal share in money lying in FD
2)let other legal heirs execute affidavit relinquishing their share
3) you can obtain succession certificate from district court
1. ALL the residual legal heirs, who wish that the properties of deceased should go to Mother, MUST execute a registered release deed in favor of mother, mentioning the properties and undertaking that they relinquish all their rights, whatsoever, over all the property of deceased.
2. This will take care of the Income Tax component for mother on receipt of the properties.
Yes registered relinquishment deed or noc for the same in favor of your mother
It is better for you to obtain a consent letter/ no-objection letter or an affidavit duly notarized from all the other legal heirs for remittance of the FD proceeds into your mothers account to the exclusion of all others.