• HUF property and liquid cash

My father who had an HUF died intestate. He left behind monies in his HUF bank account and had given unsecured loans of HUF money to distant relatives on interest and a member/coparcener of his HUF

We are two brothers and two sisters, all married. Eldest is my elder brother and then an elder sister, myself and a sister younger to me. Both my sisters got married before 2000.

Who will be the beneficiary of the monies that are lying in the bank account and given as loan. Will it be distributed between we two brothers or all four of us, two brothers and two sisters. We are from West Bengal and I assume are governed by Dayabhaga School
Asked 9 days ago in Property Law
Religion: Hindu

3 answers received in 30 minutes.

Lawyers are online now to answer your questions.

14 Answers

1. On death of Karta all his sons and daughters would inherit his properties,moveable or immovable, in equal share. 

2. This include the money lying with borrowers as well. 

3. Since you are Dayabhaga the daughters had all along equal shares in the property of father even before the 2005 amendment in Hindu Succession Act.

Devajyoti Barman
Advocate, Kolkata
20197 Answers
286 Consultations

5.0 on 5.0

All 4 are eqaul member in HUF and eldest brother will become if wants to continue HUF. Otherwise HUF will dissolve and monies will distribute by 1/4th share each.

It is a notable feature of the Dayabhaga School that the daughters also get equal shares along with their brothers.

Yogendra Singh Rajawat
Advocate, Jaipur
19328 Answers
25 Consultations

4.5 on 5.0

On father demise your eldest brother would be karta of HUF 

 

2) The death of the Karta does result in a partition which is deemed to take place under section 6 of the Hindu Succession Act as a result of which his share of the joint family property immediately prior to his death is regarded as having been the subject-matter of devolution amongst his legal heirs 

 

3) daughters would also be his legal heirs 

Ajay Sethi
Advocate, Mumbai
75798 Answers
4532 Consultations

5.0 on 5.0

You have to get Succession certificate from court and show in book if nominee is not mention otherwise nominees are mentioned in the bank than you can withdrawn the amount.

Ganesh Kadam
Advocate, Pune
10115 Answers
89 Consultations

4.9 on 5.0

Dear Sir,

The HUF does not end after death of father and eldest member of family will be next Karta and he will continue the HUF. If decided, there can be partition of HUF properties as per law.  

Ganesh Singh
Advocate, NEW DELHI
4938 Answers
9 Consultations

4.5 on 5.0

Huf money will be distributed between karta and all other coparceners equally

Prashant Nayak
Advocate, Mumbai
19636 Answers
35 Consultations

4.4 on 5.0

As per  the latest amendment to Hindu Succession Act in the year 2005, the daughters are also eligible for an equal share at par with the sons as coparcenary rights but with certain conditions:

Firstly the daughters should not have been married as on the effective date of this amendment in the law enacting the equal rights.

Secondly the father should be alive as on the date of this amendment.

If your sisters are not falling within the above said eligibility conditions then they may not be entitled to coparcenary rights in the HUF property

Prior to the 2005 HSA Amendment, a daughter ceased to be a coparcener in her father's HUF upon her marriage. However, as per the amended law, whilst a married woman becomes a 'member' in her husband's HUF (i.e. she has very limited rights in the husband's HUF), she also continues to be a coparcener in her father's HUF.

 

 

T Kalaiselvan
Advocate, Vellore
65774 Answers
858 Consultations

5.0 on 5.0

1. Elder brother steps in shoes of Father, as Karta of HUF and "ALL" other residual legal heirs become Karta members.

2. Dissolve HUF via  Resolution signed by all legal heirs and Decide on how the residual property/s are to be decided amongst (usually EQUAL share).  Conduct the Partition recordings. Inform CA who handles HUF and close PAN of HUF with the income tax department.

3. "ALL" other residual legal heirs are entitled to their stake /right /claim in HUF property on dissolution, without any exceptions, unless the HUF is not dissolved..

Hemant Agarwal
Advocate, Mumbai
4655 Answers
23 Consultations

5.0 on 5.0

-  After the death of a male Karta , the eldest male members of the family takes its position and becomes Karta .of the HUF . 

- However, now it is also possible for a daughter to become a Karta of the HUF , when she is the eldest adult coparcener in the family. 

- But, the widow of the deceased Karta , cannot become Karta of HUF. 

- Further , after the death of father , his son & daughter are having equal share in the property /asset even the amount in the bank. 

- Hence, after the death of father , specially if he died after 2005 , then brother s and two sisters will get equal share 

Mohammed Shahzad
Advocate, Delhi
3303 Answers
39 Consultations

5.0 on 5.0

You four will be the beneficiaries 

Rahul Jatain
Advocate, Rohtak
3287 Answers
4 Consultations

4.9 on 5.0

In DAYABHAGA - no right by birth as on Coparcenary.After the death of Father, his sons constitute a Coparcenary.

You may contact a lawyer in the local who practices in service law for further advises and suggestions to move on.

Mohammed Mujeeb
Advocate, Hyderabad
16464 Answers
11 Consultations

4.5 on 5.0

1. All the properties of your father have devolved through intestate succession on all children equally. A partition deed can be executed to amicably divide the movable and immovable assets.

2. If he has made no nomination in respect of the liquid assets in his bank and other liquid investments then Succession Certificate will be required to realise those assets.

3. Dayabhaga and Mitakshara schools come into play only in case of ancestral property, but these are not ancestral properties.

Ashish Davessar
Advocate, Jaipur
29496 Answers
847 Consultations

5.0 on 5.0

1. All the coparcenars will be beneficiary of the money kept in HUF account and loan given to relatives which includes you and your siblings. 

2. Your elder brother will become karta after demise of your father and now he will manage the funds and properties of HUF until the HUF is not dissolved by way of partition among coparcenars.

Mohit Kapoor
Advocate, Rohtak
8662 Answers
3 Consultations

5.0 on 5.0

All the siblings have a share in the property as it was not distributed before your father's death.

Rahul Mishra
Advocate, Lucknow
8970 Answers
15 Consultations

5.0 on 5.0

Ask a Lawyer

Get legal answers from lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer