Rights of Nominees inherit your property

Nominees inherit your property when you are no more
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The rule of the earth does not make this happen in this way in every case. Simply because in the eyes of the law, the candidate is the sole trustee and not the owner of your assets, and legally bound to transfer the assets to legitimate heirs. Jitendra P.S.

The efficiency of distributing your assets to your family depends on how well you plan.

Assets, and often do not even remember the nomination we have made.

The most disturbing is that you actually forget to name a candidate. In such a case, there must be a will. But if the will is not there too, your family recovery process can be very long. The organization will ask for a set of documents, one of which is a sequential certificate, which takes time well enough to get it. Until then, the family had been deprived of their origin.

To make sure that your loved ones do not face such legal problems, it is important to understand the role of the nomination. Fortunately, there have been many effective decisions by different courts in the past, which may help you understand the role of nomination. Here we take a look at some of them:

Bank accounts: The bank account is the first financial instrument to which each of us is exposed. We usually make nominations in bank accounts, but we do not get updated with changes in our lives. For example.

Most people make their parents their candidate when they are single, but they do not get it after the remarried marriage.

If there is a candidate, the bank transfers the deposits to the candidate and he will be relieved of his responsibility but the candidate is only a guardian of the assets and heirs, They can claim their share of the candidate.  In an important judgment, in the case of a candidate seeking the rights of a bank account for his uncle’s account, the Supreme Court of Gujarat stated that:

The candidate to a bank account has no legal heir to the original account holder and therefore can not claim money or deposits Death of the original account holder .

In the case of joint accounts, the second account holder runs the account and publishes his death, and the candidate receives the deposit amount.

Life insurance: The story is not very different here. The candidate in the life insurance policy works only as trustees of the proceeds. Article 39 of the Insurance Act of 1939 stipulates that the insurance company must deliver the amount to the candidate mentioned in the document.

In the 1983 case of Sarapati Devi v. Osha Devi, the Supreme Court also ruled that,

In the case of an insurance policy, the candidate does not inherit the sum and only receives it as the trustee of the heirs.” Once the insurance company passes the proceeds to the candidate, then the person must distribute them to the legitimate heirs according to will, if there is, otherwise the succession law will appear.

Investment Funds: Here too, the candidate is just the treasurer. Upon death, the proceeds of the common fund shall be awarded to the candidate, who in turn shall distribute it to the legal heirs if he is different. In the case of joint account holdings, if a joint holder dies other than the first owner, the units shall remain in the name of the first owner and shall have the right to register any other person as joint owner.

But the rules differ in the case of a demat account. “Interactions with AMC have revealed that in such cases, the nomination in the demat account suggests filtering in the mutual funds, but AMC generally does not cancel the nomination because you always have the option to reformulate the common fund units, Your MF scheme is valid.

In the case of a shared demat, the second account holder becomes the principal owner in the event of death. The name of the primary account holder can be deleted through an operation and if the second owner dies, the original goes to the candidate or heir in the absence of the candidate. Says Solanki.

Shares: Rules were changed here under a Supreme Court ruling in 2012. In the case of a wife claiming that the stock was dumped in the demat account where my nephew was a candidate, the Supreme Court ruled that

The wife has no right over the shares since the provisions of the Act Companies stipulate that candidates should be nominated.

So in all your demit accounts, the stock candidate will inherit. If you have joint accounts, the second owner will be the sole owner of the shares and publishes his death, inheriting the candidate/heir to the legitimate shares.

Ownership: Any property is subject to the law of will or inheritance if the will do not exist. The concept of filtration is not generally there.

“But in a cooperative housing society, you are the owner of a share unit in the community in the form of an apartment. For this type of property, you have to nominate a candidate in cooperative housing communities. Therefore” the nominee is just a guard, the actual ownership of the apartment will go to the legitimate heirs ” “The Supreme Court ruled that” the mere nomination of the Housing Cooperative Society does not grant the candidate exclusive property rights to the apartment – nor the rights of other legal heirs such as This nomination. So when the owner dies from the apartment, he is the heir and not the candidate he inherits. “

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Seema Gupta