My father and mother are passed away.My mother had bank accounts and locker. And father had a house. Mother's different back accounts has me as a nominee and in some accounts my brother as a nominee.The accounts where my brother is nominee has more amount than the accounts where I am a nominee. As my brother was not ready to share additional amount of money with me. The accounts where I am a nominee I have withdrawn money.Now there is succession case is going on between me and brother. Now he is demanding me the interest of the money which I have withdrawn. Being a nominee and legal heir too is it not my right on the interest? Or do I need to share with him.The accounts where he is nominee because of stay from court bank denied to give it to him.I also paid the Tax for the amount which I have withdrawn. If I invested that money somewhere else how this is handled at the court?
Nominee is only trustee for legal heirs
on mother demise you and brother have equal share in money lying in various bank accounts etc
your brother cannot claim additional amount merely because bank accounts in which he is nominee has more funds
4) your brother is legally entitled to 50% of the principal amount you withdrew, along with 50% of any interest that amount accumulated.
Nominee is merely a receiver and as per law nominee is bound to distribute the received money/property among all legal heirs. So you and your brother bother are bound to distribute the received amount among all legal heirs of mother and father. You being legal heir are not entitled to any interest but can claim damages. Court can direct both you and your brother to deposit the received amount in court.
Dear Client, Under Indian law a nominee is not the owner of the assets but merely a trustee or custodian their role is to receive the funds from the bank to ensure that the transfer becomes smooth but they are legally obligated to hold those assets for the benefit of the rightful legal heir. Since you and your brother are both legal heirs, the money you withdrew even as a nominee must ultimately be accounted for and shared according to the laws of succession being a nominee does not grant you exclusive rights to the money it only grants you the authority to collect it therefore, your brother is also legally entitled to the share in the said money.
Regarding your request to keep the interest or excluded from the share the law generally treats the entire sum including the principal and the interest as part of the deceased’s estate. Because you acted as a trustee any interest earned on the money you withdrew is typically considered with respect to the estate. If the court determines that you were holding these funds in trust of all legal heirs it may order you to account for the interest earned or compensate the estate accordingly. However, if you have invested the money the court will likely view the investment as an asset belonging to the estate.
Since there is already a succession case going on you must immediately disclose all these details that is the total amount withdrawn the taxes paid and the current status of the funds or investments made to your legal counsel and do not attempt to hide or retain the interest unilaterally as this could be viewed by the court as a breach of your fiduciary duty as a trustee which might negatively impact your standing in the succession dispute as well. I hope this answer helps, if you have any further query kindly do not hesitate to contact us. Thankyou
Basically the nominee to a bank account, after the death of the account holder, the nominee can withdraw the amount as a nominee, but it becomes his duty to disburse the amount to all the legal heirs of the deceased account holder.
A nominee's job is simply to receive the funds from the bank so the bank is freed from liability. The money belongs to all legal heirs according to the laws of succession (e.g., the Hindu Succession Act or Indian Succession Act, depending on religion). As both you and your brother are equal legal heirs, all of your mother's bank balance must ultimately be divided equally between you two, regardless of who was named as a nominee on which account. Because the principal amount itself is subject to equal division among legal heirs, the interest earned on that principal also belongs to the estate (the total pool to be divided).
You do not have an exclusive right to the interest generated by that money just because you were the nominee or withdrew it. The court will likely calculate the total value of your mother's estate (all accounts combined) and adjust the final settlement so both brothers receive an exactly equal share, including any interest accrued. If you paid income tax on the amount you withdrew, that tax deduction must be accounted for before the final division.
Since your brother's nominee accounts have more money, the court will likely subtract what you already withdrew (and the interest you owe him) from his larger share, balance out the taxes you paid, and order the bank to release the remaining difference to you.
If the amount belongs to him and his share then you have too. Nominee is just a trustee not owner unless his rights are disputed
