Need clarity
Querist :
Anonymous
(Querist) 04 June 2011
This query is : Resolved
Hi,
My father passed away recently, he dint have any will....he had invested in mutual funds and lots in shares, The nominee for the same is my stepmother , does tht mean the she gets all of the same and we (class 1 heirs) have no claim to it, as she insists they atre all hers as per the law? Kindly help us with the law. We are all residing in Delhi.
PALNITKAR V.V.
(Expert) 04 June 2011
Mere nomination does not take away right of the successors. You have right in the said property. The step mother can not deprive you of your rights on the basis of nomination. Send her a notice at first instance. Forward its copy to concerned institutions i.e. companies with a request not to release the amounts.If she does not agree, file an application for succession certificate.
adv. rajeev ( rajoo )
(Expert) 04 June 2011
Your mother is only nominee she cannot claim alone right over the monetary benefits of your deceased father. She has to discharge her duty by distributing the amount to the legal heirs of the deceased. If your mother is alive then step mother cannot claim anything in the benefits of your father.
Advocate. Arunagiri
(Expert) 04 June 2011
I differ.
The nominee is having all such rights to claim the entire money. The nominee can be even a third party.
If nominee cannot claim the money then what is the purpose of nomination.
Arvind Singh Chauhan
(Expert) 04 June 2011
At first you should file application to concerned department/company, That you are also successor of your father and not to pay only to your step mother.
I think department or company will stop the payment and will ask for succession certificate, then you may avail the certificate from court.
R.Ramachandran
(Expert) 04 June 2011
I completely agree with Mr. Arunagiri.
Once a Nominee has been indicated, then that Nominee can withdraw the proceeds.
It is a different matter whether the Nominee can take away all the proceeds.
Normally, a Nominee holds the proceeds in trust to be distributed amongst the legal heirs.
Therefore, in order to get the money, the legal heirs have to file a seperate suit against the Nominee for rendition of accounts and for proper distribution of the moneys received amongst the legal heirs. Since filing a suit for recovery of money would frustrate the proceedings in case the nominee by that time spends out that money, it would be better to follow the advice of Mr. Palnitkar i.e. Send her a notice at first instance. Forward its copy to concerned institutions i.e. companies, and simultaneously file an injunction suit.
Kiran Kumar
(Expert) 04 June 2011
Hon'ble SC and various HCs have already given a clear opinion on this issue.
A nominee is not the sole claimant for all the assets, a nominee is merely to receive the money from the financial institutions and the amount shall devolve upon the legal heirs as per their share.
Arvind is right that you should also have a succession certificate, it will facilitate your claim.
Querist :
Anonymous
(Querist) 04 June 2011
Dear Sir,
I so sincerely appreciate your input , but there is a complication being tht we have had a very good relationmship with our step mother so we dont want to ruin it but since she has been acting shady and saying stuff like she owns it all has made us want to seek help whether she is indeed the rightful owner of it all or not. She has all the relevant papers with her i.e death certificate, accounts details, shares and mutual funds details etc. so i really dont see her giving us all the information voluntarily. She has already transfered the mutual funds to her name and has started to sell them, she has a lot of property of her own which will goto her own children (which is only right), we just dont want her to take away our rights. I hope you undertstand where i am coming from. so what do we do?
Regards
R.Ramachandran
(Expert) 04 June 2011
Dear Anonymous,
You have to act fast. Any delay on your part will only put you all to loss. You have to immediately consult a lawyer, discuss your matter in detail and take things forward, without losing any further time.
