Mrinmay 17 December 2017

Family tree versus succession certificate

I had a joint saving account my my father in WEST BENGAL, India. After my father died (in 2015) I was operating the account. I also opened few FD's (amount of 6 7 lacs) in my father's name because there was no option to select my name while opening those FD's through internet banking. Also there was no option to put nominees name through internet banking.

Now bank knows that my father has died and are asking for succession certificate in 2017. Understanding that getting a succession certificate is very expensive is there any alternative to deal this situation. Few considerable points are:

1. Ther is no Letter of Administartion or WILL available.

2. These FDs also include a loan account which I have to pay(I am willing to clear the remaining amount)

3. I have legal heir certificate with me. Can I produce FAMILY TREE CERTIFICATE in replacement of SUCCESSION CERTIFICATE.

4. These FD's have no nominee registered. And I created these FD's after my father's death.

Please advice if FAMILY TREE will sufice this situation in replacement of SUCCESSION CERTIFICATE. If you experts have any other suggestions of advice, please let me know.

Appreciate your response

Mrinmay

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7 Replies

Sankaranarayanan (Advocate) 17 December 2017

 In a deceased account where there is neither Survivorship clause nor Nomination, the Bank delivers the assets only to the legal heirs.

As disposal with legal representation is time consuming, to improve customer service, thek has devised a system of settling the accounts without production of legal representation on the basis of Indemnity – cum – Affidavit. This is applicable only when:The customer has died INTESTATE i.e. without a WILL and There are no disputes among the legal heirs and all the legal heirs (other than those who have furnished a Letter of Disclaimer) join in indemnifying the Bank and there is no reasonable doubt about the genuineness of the claimant(s) being the only legal heirs

Legal representation

A legal representation is one that is granted by a Court of Law entitling the legal heirs of the deceased to collect the debts/securities or assets of the deceased. Bank may opt for settling the matter through legal representation. The following documents represent different forms of legal representation:

Succession Certificate,Wills and ProbateLetter of Administration Order of the Administrative General attached to the High Court.

Without legal representation the following are to be follwed Depending on the amount of claim, the following documents need to be submitted.Photocopy of Death Certificate (original shall be verified by the bank).KYC details of all the legal heir(s)Account details of the Claimant(s) (If available)Revised Claim Form duly filled and signed by the Claimant(s), other than those who signed the letter of disclaimer.Letter of disclaimerThe Declaration in the Revised Claim Form regarding the Legal Heirs(s) of the deceased is to be signed by- One independent person well known to the family of the deceased but unconnected with it and acceptable to the Bank OR By any account holder of the Bank known to the family of the deceased but unconnected with it OR By any Govt. Official whose signature is verifiable by the Bank.Such Declaration has to be sworn as an Affidavit before the Judicial Magistrate or Notary Public as per COS-539, when the settled amount is more than Rs 5.00 lakhs.Stamped Letter of Indemnity from the Claimant(s) plus one Surety good for the amount or two Sureties jointly good for the amount. Any legal heir(s) who has signed the Letter of Disclaimer in favour of other legal heir(s) may stand as surety if he/she is independently good for the amount of claim. Production of Surety should not be insisted upon when the settled amount is not more than Rs 5.00 lakhs.

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R.Ramachandran (Advocate) 17 December 2017

You have to obtain and get succession certificate. There is no other way to get the FD money from the Bank. So, instead of wasting time, better take steps to apply for and obtain the succession certificate.

Kumar Doab (FIN) 17 December 2017

You had the option of not opening FDR in the name of deceased and without nomination if it was not suitable, and also to inform the bank of deficiencies or oversight if any.

That was not done since 2015.

Your logics may not cut ice with bank.

Kumar Doab (FIN) 17 December 2017

You may familiarize yourself with guidelines of regulator RBI in case of ‘Deceased Depositor A/c ‘ and internal rules of Bank on the lines of guidelines by regulator………..

These are available on website of Bank,RBI

RBI; Master Circular on Customer Service in Banks

20.Settlement of claims in respect of deceased depositors – Simplification of procedure

20.2 Accounts without the survivor / nominee clause

https://www.rbi.org.in/scriptts/bs_viewmascirculardetails.aspx?id=9008#202

Kumar Doab (FIN) 17 December 2017

“In case where the deceased depositor had not made any nomination or for the accounts other than those styled as "either or survivor" (such as single or jointly operated accounts), banks are required to adopt a simplified procedure for repayment to legal heir(s) of the depositor keeping in view the imperative need to avoid inconvenience and undue hardship to the common person. In this context, banks may, keeping in view their risk management systems, fix a minimum threshold limit, for the balance in the account of the deceased depositors, up to which claims in respect of the deceased depositors could be settled without insisting on production of any documentation other than a letter of indemnity.”

The funds may be above threshold limit.

The Bank/banker senior officials may agree to accept Legal Heir certificate/affidavit per procedure alongwith claim form and annexures i.e. death certificate, disclaimer, indemnity,sureties....and still pay...

Kumar Doab (FIN) 17 December 2017

In case the Bank/banker is considerate it may agree otherwise upon checking the death certificate and date on FDR ( which arouses suspicion) it may send for legal opinion.

Therefore right now you may attach legal heir adffidavit/certificate and check if bank agrees to pay on strength of above mentioned docs.............

If it does it is quick and easy.

Rest you may settle with other legal heirs as deemed fit and possible.

Mrinmay 18 December 2017

Thanks Narayanan,

1. Would you be able to tell me, what would be the next step from my side. As usual bank is not giving me proper response.

2. How would I be able to force the bank to accept notorized affidavit.

3. I am afraid bank might deny to me for accepting any document otherthan succession certificate. If it is so, what can be said or done?

Thanks and appreciate your response.

Mrinmay

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