• Can a Guardian also be a (Joint) Equal-Nominee

When parents want to assign their two children as Multiple Nominees (in Equal Proportion of 50% each) to the following assets:

(A) Demat Accounts (of Listed Shares),
(B) Mutual Fund Folios,
(C) Immovable Property,

Is it allowed by law to assign the Nominee-1 Elder Child (Major), also as the Guardian of the Nominee-2 Younger Child (Minor) ? If not allowed, then WHY ?
Asked 7 months ago in Property Law
Religion: Other

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23 Answers

Major child can be guardian of Minor child, if parents want to assign their two children as multiple nominees' in their assets.

Shashidhar S. Sastry
Advocate, Bangalore
3520 Answers
204 Consultations

5.0 on 5.0

a minor can be appointed as a nominee through the guardian of the minor nominee

but if parents are alive then they themselves are the natural guardian of the minor child

so if the parents die, for instance, the 50% nomination left for the minor nominee will go to his other guardian like grandfather or uncle or any other person as permitted by law or a guardian duly appointed by the court

you have not stated your religion. That would help to check as per the personal law who all can be the guardians of a minor 

 

Yusuf Rampurawala
Advocate, Mumbai
6157 Answers
50 Consultations

5.0 on 5.0

Nominee is only a custodian and not the beneficiary. Parents can appoint to 2 nominees, minor can be nominee but till he is minor and parents are alive, parents are only guardians.

In case of parents intestate demise, nominee can only collect the fund than it will distribute as per inheritance law. Both children will receive half share each.

Yogendra Singh Rajawat
Advocate, Jaipur
21439 Answers
31 Consultations

4.4 on 5.0

You can align your elder daughter as guardian towards younger son for movable property.

Ganesh Kadam
Advocate, Pune
12004 Answers
128 Consultations

4.9 on 5.0

  1. It's legal for you and your husband to nominate your daughter and son, each entitled to 50% share in Demat, Mutual Funds and House.
  2. As parents,, you can nominate your major daughter as the guardian of your minor son, in Demat, Mutual Funds and House, even though your daughter is also a beneficiary.

Shashidhar S. Sastry
Advocate, Bangalore
3520 Answers
204 Consultations

5.0 on 5.0

In case of a minor nominee, age of the nominee, and details of guardian (name and address) are also required. The guardian must also sign the form. The share proportion of each nominee must be mentioned.

Ajay Sethi
Advocate, Mumbai
82096 Answers
5156 Consultations

5.0 on 5.0

Daughter can be appointed as guardian of minor son while making nomination 

Ajay Sethi
Advocate, Mumbai
82096 Answers
5156 Consultations

5.0 on 5.0

1. In investments which is movable in nature nomination is ti be made only in respect of one person. 

2. It appears you want distribution of your assets among your legal heirs in certain manner. 

3. If that is so then the best option is to make a registered Will or a registered deed of settlement. 

4. Nomination can not override law of testamentary or even non testamentary Succession. 

Devajyoti Barman
Advocate, Kolkata
22341 Answers
343 Consultations

5.0 on 5.0

Hii greetings of the day,

1. The  nominee is an important person, he or she has no rights over the money or assets unless that is specified under the will or the nominee happens to inherit the money. So as such a nominee is a mere custodian of the assets. He is a contact point for the investments. So in the event of a person’s death, a bank could get in touch with the nominee for further instructions to act on the account. 

2.The nominee appointed has to be an individual only. Only one person can be appointed as a nominee. It is not compulsory to appoint a nominee for each investment of yours. However, it is your interest that you appoint a nominee for your investment so that in the event of your death, there is little difficulty in transferring your assets. So when you make an investment in a fixed deposit, there is a column where you can mention the name of the nominee. Similarly in the case of a mutual fund investment, there is a column where you can appoint a nominee. You can appoint only one person as a nominee. In case you do not appoint a nominee while making an investment, you can also do the same at a later date, by filling the relevant application form and give to relevant department of investment.

3. If incase the investor wants to divide his or  her share , or investment or asset can make a will.

 

 

All the best

 

Rita Rajput
Advocate, Thane
181 Answers
2 Consultations

Not rated

Yes you can do the above there is no bar. 

Prashant Nayak
Advocate, Mumbai
23361 Answers
49 Consultations

4.4 on 5.0

Dear Madam

Firstly your rating matters least

 

secondly i would suggest that you mellow down your tone a bit as the manner in which you have posted the follow up looks quite aggressive [with the font in caps and with double question marks]

 

thirdly i apologize for having not understood your question as put by you originally

 

the reply was qualified since you had not mentioned the religion, because the guardian differs as per the personal law of the minor to which he belongs

 

coming to your query - 

 

the definition of a guardian is given in Hindu Minority and Guardianship Act, 1956, in s.4(b), which is reproduced below - 

 

(b) "guardian" means a person having the care of the person of a minor or of his property or of both his person and property, and includes--

(i) a natural guardian,

(ii) a guardian appointed by the will of the minor's father or mother,

(iii) a guardian appointed or declared by a court, and

(iv) a person empowered to act as such by or under any enactment relating to any Court of ward.

 

as you can see above, guardian is one who is taking care of the minor or of his property or of both.

 

the definition is an exhaustive definition because it also says that apart from the aforesaid person, the guardian also includes a person as listed in clauses (i) to (iv) above

 

thus by law, a guardian is not only the person who is taking care of the minor or of his property or of both but also includes persons as listed in clauses (i) to (iv) aforesaid

 

the aforesaid act of 1956 also gives us the definition of who is a natural guardian of a Hindu minor in s.6, which is reproduced below - 

The natural guardians of a Hindu minor, in respect of the minor's person as well as in respect of the minor's property (excluding his or her undivided interest in joint family property), are—

(a) in the case of a boy or an unmarried girl—the father, and after him, the mother; provided that the custody of a minor who has not completed the age of five years shall ordinarily be with the mother;

Explanation.—In this section the expressions “father” and “mother” do not include a step-father and a step-mother.

 

now you wish to make your minor son a co-nominee and your query is whether your elder daughter can act as his guardian

 

we need to understand when does the right of the nominee come into picture....that happens only after demise of the owner...so if the owner dies then his nominee steps into his shoes...if the nominee is a minor then he will be represented by his guardian. If we see the definition of guardian, the elder sister of the minor can also be said be taking care of the minor or of his property or of both [in absence of the parents of the minor]

 

now if the elder sister is not there, then the next person who can be the guardian of the minor, would be his father and if he is not there then his mother, who are the minor's natural guardians as per above definition. Now if parents are both dead, then the guardianship will be assumed by any person who has been appointed as a guardian of the minor by the parent/s under their respective Will. But the problem of a Will is that if its not probated [proved in a Court of law], then the bank will not accept the guardian named in that Will as the guardian of the minor. 

 

so banks in most cases insist for a court appointed guardian because before they release the moveable assets to anybody who claims to be guardian of the minor, the banks want to be doubly sure that it is releasing the money to the right person and that is why they always insist for a court appointed guardian so that bank gets a valid legal discharge

 

another aspect you need to keep in mind is that just by appointing a nominee, the nominee does not automatically become entitled to the assets upon the demise of the owner. The nominee always holds the assets which are released to him/her as a trustee for all the legal heirs of the deceased owner. 

 

In your case if after the demise of the parents, the only legal heirs left are the children, then there is not much of a problem since the nominees themselves are the legal heirs. However if there are other legal heirs also, then the nominee would hold the asset for the other legal heirs as a trustee and that nominee can only deal with his share from the asset which is transferred to him in his capacity of a nominee. If that nominee deals in excess of his share, which actually belongs to another legal heir, then he will have to account for the same to that legal heir

 

so what i would suggest, in order to avoid any complications from the bank's side for releasing the assets on the demise of the holder-owner to his/her nominee, to make only your elder daughter as a 100% nominee. Upon demise of the holders, the funds will be released to the daughter. Now since the daughter would be having only 50% share in the funds in her capacity of a legal heir [assuming there are only 2 children], then she can deal only with her own 50% share and the balance 50% share she would hold as a trustee for her brother. In absence of the parents, she can also act as a guardian of her minor brother and when he turns major the 50% share can be released by her to her brother. 

 

In this way it will be ensured that the bank releases the entire funds to your elder daughter upon demise of the holder and there wont be any issue or problem from the bank's side, had the minor son would also be a 50% nominee [through his guardian], since despite the law being so clear as aforesaid, the banks are very reluctant to release the share of the minor nominee, unless there is a court appointed guardian, which makes the matter complicated, because that involves filing of a guardianship petition in Court and other legal compliance related to it. 

 

I hope your query is resolved. 

 

I would again like to repeat that your rating matters least. You will appreciate that though you have presumed that yours is a straight forward question, but given the law as it stands and the manner in which it is perceived by banks, there is NOT a straight forward answer to your query, as can be seen from the aforesaid. 

 

in order to make amends to my erroneous reply to your initial query, i offer you a free phone consultation for max 20 mins. You can have my contact details from kanoon. An appointment can be set up over email or whatsapp and then we can take the free consultation forward. 

 

Hope this helps!

 

 

Yusuf Rampurawala
Advocate, Mumbai
6157 Answers
50 Consultations

5.0 on 5.0

1. Multiple nominees are not allowed in individual shares for which you can make each child nominee of specific shares/ Demat account or Bank FDs etc.

 

2. Guardians are declared by the Court against filing of application when the natural guardians are no more. In the instant case, then natural guardians are alive. So, the elder son  can not be declared as the guardian of the younger son by the parents during there life time in connection with being nominee of immovable properties of their parents.

Krishna Kishore Ganguly
Advocate, Kolkata
25416 Answers
726 Consultations

5.0 on 5.0

1. Guardianship is declared by the Court against application filed as per Guardians and wards Act.

 

2. natural guardians being the parents can not declare their one son/daughter as the guardian of their  another minor son/daughter.

Krishna Kishore Ganguly
Advocate, Kolkata
25416 Answers
726 Consultations

5.0 on 5.0

A share holder can nominate multiple nominees to his demat account or mutual funds.

NSDL to allow up to three nominations in single demat account. Country's largest depository NSDL will soon allow demat account holders to nominate up to three persons for their holdings in a single account.

Nomination is permitted for accounts with joint holders. But, in case of death of any of the joint holder(s), the securities will be transmitted to the surviving holder(s). Only in the event of death of all the joint holders, the securities will be transmitted to the nominee.

 a minor can be a nominee. In such a case, the guardian will sign on behalf of the nominee and in addition to the name and photograph of the nominee, the name, address and the photograph of the guardian must be submitted to the DP.

The nomination form duly filled-in should be submitted to the DP either at the time of account opening or later.

 

•The account holder, nominee and two witnesses must sign this form and the name, address and photograph of the nominee must be submitted.

 

•If nomination was not made at the time of demat account opening, it can be made subsequently by submitting the nomination form.

the nomination can be changed anytime by the account holder/s by simply filling up the nomination form once again and submitting it to the DP.

 

T Kalaiselvan
Advocate, Vellore
72168 Answers
1078 Consultations

5.0 on 5.0

a minor can be a nominee. In such a case, the guardian will sign on behalf of the nominee and in addition to the name and photograph of the nominee, the name, address and the photograph of the guardian must be submitted to the DP.

The guardian can be natural guardian or court appointed guardian.

During the existence of natural guardian i.e., father or mother, there is no question of any other person acting as guardian to the minor other than by an order of court.

 

T Kalaiselvan
Advocate, Vellore
72168 Answers
1078 Consultations

5.0 on 5.0

No.

She would not be your son’s "legal guardian" i.e., for children who's parents are either no more or unfit to be legal guardians, older siblings can be become Legal Guardian for a younger sibling but the court’s approval has to be taken.  

S Srinivasa Prasad
Advocate, Hyderabad
2868 Answers
9 Consultations

5.0 on 5.0

Refer to above answer.

Further, in presence of both of you (i.e., parents) your daughter cannot be guardian to your minor son.

It is not allowed when both of you are alive.

S Srinivasa Prasad
Advocate, Hyderabad
2868 Answers
9 Consultations

5.0 on 5.0

- Legally you can nominate a minor as well under the guardianship of a major relative .

- Further it is also allowed by law to assign & be a guardian of a minor nominee. 

- Yes, you can put daughter as the guardian of the minor son , while making nomination . 

Mohammed Shahzad
Advocate, Delhi
6719 Answers
71 Consultations

5.0 on 5.0

Nominee means that the person named has a share in the property. It is obvious that the money or any investment is protected by law in case the nominee is a minor. Once he becomes a major he gets full control. 

A nominee can become a guardian if the owner dies and one or more of the nominees are minor if he is also a close relative ie blood relative.

Rahul Mishra
Advocate, Lucknow
12251 Answers
29 Consultations

5.0 on 5.0

For house nominee is not done. You have to name it specifically in the gift deed or will.

Make a will. In that it is allowed.

Rahul Mishra
Advocate, Lucknow
12251 Answers
29 Consultations

5.0 on 5.0

minor can be made a nominee with an appointed guardian

Mohammed Mujeeb
Advocate, Hyderabad
19002 Answers
18 Consultations

4.5 on 5.0

Yes if child 1 is major then you can make him as guardian of child 2 who is minor. 

 

Mohit Kapoor
Advocate, Rohtak
10689 Answers
7 Consultations

5.0 on 5.0

Dear Sir/Madam,

You are suggested that the said nomination and guardian is permitted in law. 

Ganesh Singh
Advocate, New Delhi
6616 Answers
14 Consultations

4.5 on 5.0

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