Nomination for fixed deposits
my mother-in-law is having fixed deposits with a nationalised bank. i dont know whther she has made any nomination. my mother-in-law is having two sons and two daughters. if my mother-in-law has made any nominations in the name of her sons, what will be the position of the remaining daughters.
do they have any legal rights over the deposits. i was told that nominee has every right to utilise the entire amount .the legal heirs have no right to claim. if according to law have the rights can they stop making the payment to the nominee by just giving a request letter to the bank. please enlighten me.
thanking you sir,
Asked in Family Law from Mandya, Karnataka
1) nominee is only a trustee for all legal heirs .
2) daughters will have equal share in FD standing in name of mother
3) daughters can address letter to bank not to make payment to the nominees without their NOC .
4) they can move court for share in fixed deposit proceeds and other properties standing in name of mother
1. Nominees are trustees of the money kept in the account,
2. Non legal heirs also can be made mominees,
3. Nominees can not utilise the amount of tye deceased account holder,
4. The legal heirs should first write to the Bank not to handover the money to anybody till the legal heir certifica is produced,
5. The legal heirs can equally distribute the amount after collecting from the Bank by submitting the legal heir certificate.
Is your mother-in-law alive?. The Supreme Court 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. 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, according to Section 45ZA of the Banking Regulation Act. 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. Based on SC's decision, all the legal heirs would have equal shares.