Prevailance of will over service book entry
c k pathak
(Querist) 07 December 2012
This query is : Resolved
some one has made nominee/ share holder for his pf, gratuty and others super annuation benifits such as pension etc. now he makes a will barring all previous nomonees/share holders and declares otherway. which one will prevail- the will or the entries in service book?
Raj Kumar Makkad
(Expert) 07 December 2012
Nominee may not be beneficiary of the service benefits. Nominee means a messenger who has to collect the benefits and has to distribute among the legal heirs or beneficiaries or beneficiary under will, what ever the case may be. The testator in the same will may cancel all her previous nominations etc. so that the beneficiary of the will may directly claim the entire benefits instead of that nominee.
Guest
(Expert) 07 December 2012
May the nominee be not the beneficiary for the claims as against the will, if specifically mentioned about PF and other retirement dues in the will, but department has no authority to act on the basis of a will unless necessary orders of the court are obtained for the department to pay the dues of the employee to the beneficiary of the will. The concerned department will honour the nomination in the absence of any order from the court. The will beneficiary will have to claim the due benefits from the nominee only, if he receives.
If the employee is still alive, he may better change his nominations with the department, as he can submit revised nomination at any time he likes.
ajay sethi
(Expert) 07 December 2012
nominee is only a trustee . he holds the funds in trust for legal heirs .
obtain probate of will and request the department not pay the money lying in PF account till probate is obtained
Sudhir Kumar, Advocate
(Expert) 11 December 2012
I may be permitted to disagree.
Nomination made for PF, DCRG, Gp Ins, Pension are a statutory process under different rules framed under Article 309 of Constitution.
These nominations are diffent than Bak nominations.
I just quote one example of Indian Providnet Fund act 1925. Section 5 reads as udner :-
5. Rights of nominees. 1[
(1) Notwithstanding anything contained in any law for the time being in force or in any disposition, whether testamentary or otherwise, by a subscriber to, or depositor in, a Government or Railway Provident Fund of the sum standing to his credit in the Fund, or of any part thereof, where any nomination, duly made in accordance with the rules of the Fund, purports to confer upon any person the right to receive the whole or any part of such sum on the death of the subscriber or depositor occurring before the sum has become payable or before the sum, having become payable, has been paid, the said person shall, on the death as aforesaid of the subscriber or depositor, become entitled, to the exclusion of all other persons, to receive such sum or part thereof, as the case may be, unless--
(a) such nomination is at any time varied by another nomination made in like manner or expressly cancelled by notice given in the manner and to the authority prescribed by those rules, or
(b) such nomination at any time becomes invalid by reason of the happening of some contingency specified therein,-- and if the said person predeceases the subscriber or depositor, the nomination shall, so far as it relates to the right conferred upon the said person, become void and of no effect: Provided that where provision has been duly made in the nomination in accordance with the rules of the Fund, conferring upon some other person such right in the stead of the person deceased, such right shall, upon the decease as aforesaid of the said person, pass to such other person.]
