• Succession case and nominee

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 The accounts where I am a nominee I have withdrawn money.Now there is succession case is going on between me and brother. Now he is demanding me the interest of the money which I have withdrawn.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he is nominee because of stay from court bank denied to give it to him.I also paid the Tax for the amount which I have withdrawn.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?
Asked 2 months ago in Property Law
Religion: Hindu

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11 Answers

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. 

Ajay Sethi
Advocate, Mumbai
100823 Answers
8237 Consultations

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. 

Siddharth Srivastava
Advocate, Delhi
1558 Answers

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

Anik Miu
Advocate, Bangalore
11431 Answers
127 Consultations

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.

 

T Kalaiselvan
Advocate, Vellore
91031 Answers
2525 Consultations

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 

Prashant Nayak
Advocate, Mumbai
35240 Answers
257 Consultations

Please understand that a nominee is only a custodian and trustee of the proceeds of the deceased's deposits and legally is bound to share the proceeds with all the legal heirs, if the deceased left no Will. No nominee can have an absolute claim to the exclusion of the other legal heirs. This is the legal position. Please be guided accordingly.

Swaminathan Neelakantan
Advocate, Coimbatore
3192 Answers
20 Consultations

legally you are required to share not only the amount lying in the account for which you are the nominee, with your brother, but also the accrued interest

it is settled law that mere nomination does not give exclusive right to the nominee and he would hold the fund as a trustee for the legal heirs 

likewise you are entitled for your share from the amount and accrued interest for the account for which your brother was a nominee 

Yusuf Rampurawala
Advocate, Mumbai
7986 Answers
79 Consultations

Dear Sir/Madam,

A nominee is only authorised to receive the bank money; nominee does not become absolute owner if other legal heirs exist.

If there is no Will, the money withdrawn by you and the money lying in accounts nominated to your brother will be adjusted as per legal shares.

You should disclose the withdrawn amount, tax paid, and investment details before the court. Any interest/profit may also be considered for adjustment, but your brother cannot claim it automatically without court order.

Consult your advocate and file proper bank statements in the pending succession case.

Advocate Saurabh Agrawal

Saurabh Agrawal
Advocate, Greater Noida
270 Answers

Sir/Madam, 

It is suggested that a nominee is just a custodian of the amount kept in bank and the same is to be divided among all the legal heirs, if there is no will or specific authorisation to that effect. From your query here, it is not clear as to whether your father and mother had written a will in fovour of you or your brother. In this condition, it is clarified that if there is not such will, the all the amount of money, lockers, house everything to be divided equally between you and your brother. Since there is an stay and brother is not able to withdraw the amount, and brother is asking the amount which you have already withdrawn, you are specifically suggested to come with a clean hands before the Court, do admit and submit the facts of your withdrawal and also give undertaking, to give extra amount (in excess of your share) if the court directs you to do so. Please keep in mind that since the share of your brother is more, you will not be required to give anything even by that submission. It is also to be kept in mind that since the amount where your brother is nominee, is not withdrawn and also interest on that amount might be increasing, this will increase your argument for not giving anything now. 

Ganesh Singh
Advocate, New Delhi
7299 Answers
16 Consultations

Based on the facts stated by you, there is generally no need to panic. Merely sharing a coloured PDF copy of a registered sale deed on WhatsApp does not by itself enable someone to transfer your property or create valid ownership rights.

A sale deed is evidence of ownership, but ownership of immovable property cannot ordinarily be transferred merely on the basis of a PDF copy. Any valid transfer would require execution of a fresh registered conveyance by the owner or a duly authorised person, along with compliance with the applicable registration laws.

That said, like any identity or property document, a copy of a sale deed could potentially be misused for limited purposes, such as:

  • Attempting to create forged documents.

  • Using the property details for fraudulent representations.

  • Misusing personal information contained in the document.

However, such misuse would itself be illegal and would not automatically affect your ownership of the property.

The fact that the original sale deed is lying with the bank is an additional safeguard. Since the property is mortgaged, any genuine purchaser or lender would ordinarily require details relating to the original title documents and the existing encumbrance before proceeding with any transaction.

If you are unsure whether you actually sent the PDF, you may simply check your WhatsApp chat history or the "Media, Links & Docs" section of the relevant conversation. There is no need to assume that it was sent if you are uncertain.

If you later discover that the PDF was accidentally shared with an unknown or suspicious person, you may:

  • Preserve the chat for your records.

  • Monitor the property records periodically for any unauthorized activity.

  • Keep the bank informed if you notice any suspicious developments.

On the facts stated by you, sharing a coloured PDF of the sale deed by mistake does not, by itself, place your ownership or the bank's security interest at risk.

Since you mentioned that you suffer from OCD and memory-related doubts, it is also worth remembering that such conditions can sometimes cause persistent uncertainty about whether an event actually occurred. If you cannot find any evidence that the document was sent, it would be prudent not to assume that it was. Instead, rely on objective records such as your WhatsApp chat history rather than your recollection alone.

Yuganshu Sharma
Advocate, Delhi
1565 Answers
5 Consultations

Under Indian succession law, a **nominee is merely a trustee or caretaker** of the assets, not the absolute owner. As a legal heir, you have an equal inheritance right over your mother's entire estate—including the accounts where your brother is the nominee. Therefore, withdrawing funds from the accounts where you are the nominee is legally treated as an **advance or pre-distribution** of your share of the inheritance.

Regarding the **interest or investment returns** earned on that withdrawn amount: since you took possession of these funds before the final court decree, any income generated from them (whether as bank interest or capital gains from reinvestment) is considered an accretion to the estate. The court is highly likely to treat this enhanced value as part of the divisible inheritance pool. Consequently, you will probably have to account for and share these returns with your brother during the final settlement, even though you are a legal heir. The fact that you paid income tax on the withdrawn amount does not give you exclusive rights to the returns; however, the court will credit your tax payment as a legitimate expense, deducting it from your overall liability before dividing the net estate. Ultimately, the court’s primary goal is equitable distribution, so be prepared to disclose your investment details and reconcile the interest earned against your brother's rightful share.

Under Indian succession law, a **nominee is merely a trustee or caretaker** of the assets, not the absolute owner. As a legal heir, you have an equal inheritance right over your mother's entire estate—including the accounts where your brother is the nominee. Therefore, withdrawing funds from the accounts where you are the nominee is legally treated as an **advance or pre-distribution** of your share of the inheritance.

Regarding the **interest or investment returns** earned on that withdrawn amount: since you took possession of these funds before the final court decree, any income generated from them (whether as bank interest or capital gains from reinvestment) is considered an accretion to the estate. The court is highly likely to treat this enhanced value as part of the divisible inheritance pool. Consequently, you will probably have to account for and share these returns with your brother during the final settlement, even though you are a legal heir. The fact that you paid income tax on the withdrawn amount does not give you exclusive rights to the returns; however, the court will credit your tax payment as a legitimate expense, deducting it from your overall liability before dividing the net estate. Ultimately, the court’s primary goal is equitable distribution, so be prepared to disclose your investment details and reconcile the interest earned against your brother's rightful share.

Lalit Saxena
Advocate, Sonbhadra
390 Answers

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