Legal Question in Wills and Trusts in India

One of my friend's old father has 4 sons.Regarding the immovable properties like house/lands etc he has made a registered will.But for monetary assets like Bank Fixed Deposits etc he has made only nominees without making a joint a/c.

Recently I have told him that merely making nominee will not facilitate the nominee to be the sole owner of the liquid assets like FDS/ Insurance Policies etc AFTER HIS DEATH

(1) In fact while A NOMINATION ONLY INDICATES THE HAND AUTHORISED TO RECEIVE THE AMOUNT ENSURING A SMOOTH TRANSFER IT DOES NOT MAKE THE NOMINEE THE sole owner of the assets.THE OTHER LEGAL HEIRS CAN STAKE A CLAIM TO THEM

(2)The best way is to make a joint a/c on either or survivor OR former or survivor mode .

ALTERNATIVELY CAN HE MAKE AN ADDENDUM WILL REGARDING THESE ON A PLAIN PAPER WITHOUT REGISTRATION OR MAKE A FRESH WILL MENTIONING EVERYTHING AND AGAIN REGISTERING.

PLEASE HELP REGARDING POINTS (1)AND (2)


Asked on 8/09/13, 5:28 pm

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

10.08.2013

Dear Sir / Madam,

You have raised queries and answered them too, leaving very little room for attorney's to comment thereon. Yes, ideally a Will should comprise of the entire estate (immoveable and moveable property) of the Testator (Maker).

1. As far as moveable property like Fixed Deposit Receipts (FDR's), shares, debentures, mutual funds are concerned, the nominee acquires the position of the Owner after his / her demise. Your friend's father must have taken due care to nominate the particular son's name on each of his FDR's, so as to be fair to all his sons.

2. An Addendum Will for all moveable property may be made, but the Testator has to ensure that the details of nominee in each FDR exactly matches with the name of the beneficiary that he mentions for each FDR in the extended Will. In my view, the joint A/c is sparingly resorted to circumvent the tax implications and provisions.

Regards,

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Answered on 8/09/13, 7:21 pm


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