As far as FD in father single name all legal heirs have equal share in said money
in joint FD father 50 per share would devolve on legal heirs equally
Bank fds
We are two brothers and two sisters in our family, my father expired leaving FDs in bank,70% of fds are joint with daughter in law and 30 % are on his individual names. I have enquired with bank they said that joint fds can be withdrawn by joint holder and my brother says that she will deceide what to do with those fds, i had objected that we four are legal hires and that joint FD amount must be distributed amoung four persons, which my brother is objecting and he proposed to form a trust on fathers name ,but we 2 sisters and my self do not agree and apposed for forming trust and informed that we will decide with the amount we received. However my brother decided to form trust with 50% of joint fd amount which are on his wife's name and 50 % amount will be distributed equally amoung four legal hires. Please let us know as per legal Hindu laws what is correct way to get full FD amount and distribute to 4 legal hires.
Asked 5 years ago in Property Law
Religion: Hindu
16 Answers
Dear ma'am,
Legally, your father only had 50% share in the FDs which are in joint names.
Therefore as a legal heir can claim a right only to the extent of 50% out of those 70% FDs.
As far as the remaining 30% FDs which stood in his individual name are concerned, they are liable to be distributed equally between the legal heirs.
1. IF the FDR's were prepared by Father with his own Funds and such FDR's are reflected in Father's Income Tax Returns, THEN it means that Joint Holder Sister CANNOT claim the joint FDR's.
2. IF Father did not leave any WILL, THEN "ALL" his residual Class-I legal heirs (Sons, Daughters, Mother) shall have EQUAL share /claim in the FDR's irrespective of joint holding of FDR's, under the Hindu Succession Act.
3. Brother has no right to prepare any Family Trust, with Father's money /property, UNLESS ALL the residual legal heirs give their mutual consent for forming a Family Trust.
4. IF Brothers /Sisters are not cooperative, THEN only remedy is to file Suit in the local Civil Court, for claiming your individual shares.
If you all rest of legal heirs can prove those all FD's are made from the HUF income and your father was Karta of the family. So all those FD's belongs to HUF FD's and needs to dissolve the HUF and than can able to distribute the FDs equally among all legal heirs.
If the HUF is not formed than your sister-in-law has rights in the 50% FD's and fathers name 50% can be divided equally in the legal heirs.
It has to be equally distributed between all. If all are not consenting then you need to approach court for orders Liquidating it
File a partition suit
legal heirs can claim the equal share of FD.
in joint FD, 50% can be divided equally in the legal heirs.
Yes,Definitely.
As per Hindu Succession Act daughters have equal rights in the property of father under section 6 of Hindu Succession Act and as per rulings of Supreme Court of India.
Please file partition suit for equal division of FD amongst all legal heirs and court will pass order dividing FD in equal amounts into four divisions as per your matter.
Inform the bank not to release the FDs as distribution is disputed. All have eqaul share i.e. 1/4th each.
If FDs are purchased by father only and DIL is just a joint owner than full amount will distribute in 4. Daughter in law have no claim.
This is a jointly held FD with E or S facility.
This is not a nomination to the FD.
Thus the joint holder is entitled tothe entire money upon the death of the other holder.
If your brother is willing to give 50% share, you may better take it becasue if you go to court, you may not get even this despite running the case for years.
- After the death of your father , his FD and assets would be devolved upon the legal heirs i.e. two brothers and two sisters only, and daughter in law having no right over it.
- It means that 30+ 35 = 65 amount would be divided amongst legal heirs , and 35 percent will remain with the daughter in law.
- Even joint holder will withdraw the amount , then also she cannot claim right over all the amount legally.
Hi
1) With reference to the 30% Fixed Deposits, all 4 legal heirs are entitled to equal shares.
2) With reference to the 70% Fixed deposits, which are in the joint names of your father and sister in law, you should
check whether the Fixed Deposit is opened with the survivorship clause ("either or survivor", or "anyone or survivor", or "former or survivor" or "latter or survivor"),
3) If your father's name is mentioned first in the Fixed Deposit and the survivorship clause is "either or survivor", or "anyone or survivor", or "former or survivor, then the legal heirs can claim 100% of fixed deposit money.
4) Please note that your brother has not understood the survivorship clause in Fixed Deposits.
5) In banking terms, Joint holder does not mean joint owner of Fixed Deposit. Joint holder means survivorship.
6) Only if the Survivorship is later or survivor, your sister in law can claim 100%. and further in this case, she should prove that she has invested 50% of the money along with your father in the fixed deposit, to claim her share .
7) Please issue notice to other legal heirs and bank immediately.
8) Also apply for Succession certificate for bank fixed deposits immediately by filing a Succession Original Petition before the court and in the said Succession Original petition please do make an interim prayer for injunction to restrain bank from handing over money to your sister in law.
Hope this information is useful
1. To get full FD amount distribution you need to file partition suit and prove that money was invested by your father alone and daughter in law name was included just for purpose of convenience.
2. Otherwise daughter in law can claim all the joint FDs and you and your sisters cannot claim that amount.
File an application for succession certificate and submit it .
Dear Sir/Madam,
You are suggested to oppose the move of the trust and ask for division of the amount equally.
The amount must be equally divided amongst all the heirs. He had joint fd but still she is not a shareholder as per the Hindu law although she may withdraw the amount.
