i am still confused to understand whether 1)There is a huf comprising husband(H) wife(w) married daughter (md-1)& married daughter (md-2). on death of Mr.H, huf can be continued by wife-w & md-1 & md--2. if yes, what will be the status of wife-w i.e karta or manager & is there any procedure to follow for continuation of huf .
(2) .what will be the status of the HUF after death of wife-w
3) whether bank account can be continued ? what is the procedure to continue the a/c. in bank. w- willbe karta or manager? please reply me elaborately to satisfy my query
28 July 2024
Your queries revolve around the continuation and management of an HUF (Hindu Undivided Family) after the death of its Karta, specifically when the Karta is a husband and the HUF includes a wife and married daughters. Let's address your queries one by one.
### **1. Continuation of HUF After the Death of Karta (Mr. H)**
**1.1 **HUF Continuation:**
- **Survivors of HUF:** After the death of Mr. H, the HUF can continue with the remaining members: the wife (W), and the two married daughters (MD-1 and MD-2). In the HUF context, daughters, even if married, can be part of the HUF, although their rights and roles may be different compared to sons.
- **Role of Wife (W):** The wife (W) of the deceased Karta can take over the role of managing the HUF’s affairs. She will typically assume the role of the Karta in practice, although the term “Karta” is traditionally reserved for male members. In modern practice, she will act as the Manager of the HUF.
**1.2 **Procedure for Continuation:**
- **Legal Heir Declaration:** The first step involves a declaration of the legal heirs. The surviving wife and daughters need to declare themselves as the legal heirs of the deceased Karta.
- **Updating Records:** The HUF’s records, including bank accounts, must be updated to reflect the new management. The bank will typically require a death certificate of Mr. H and proof of the legal heirs (e.g., succession certificate, legal heir certificate).
- **Bank Notification:** Notify the bank about the death of the Karta. Provide necessary documentation and request to update the bank account details with the names of the new managing members.
### **2. Status of the HUF After the Death of the Wife (W)**
**2.1 **Continuity of HUF:**
- **Post-Wife’s Death:** After the death of the wife (W), the HUF can continue, but the management and succession will depend on the surviving members. The HUF would typically continue with MD-1 and MD-2, as they are the surviving coparceners and members.
- **Role of Daughters:** The two married daughters (MD-1 and MD-2) will inherit the rights in the HUF. In the absence of a male Karta, one of the daughters or a legal representative may take up the role of managing the HUF’s affairs, though traditionally the role of Karta is not given to daughters.
### **3. Continuing the Bank Account**
**3.1 **Procedure for Continuation:**
- **Documentation:** The following documents are generally required to continue the bank account: - **Death Certificate of the Karta (Mr. H).** - **Death Certificate of the Wife (W) (if applicable).** - **Proof of Legal Heirs (such as a legal heir certificate or succession certificate).** - **Declaration of the new Managing Members of the HUF.** - **Identity and Address Proof of the new managing members.**
- **Bank Procedures:** Submit the above documents to the bank where the HUF account is held. The bank will update the account details to reflect the changes in management and the new authorized signatories.
**3.2 **Role of Managing Members:**
- **Role Assignment:** While traditionally, the role of Karta is assigned to male members, in practical terms, the surviving members (MD-1 and MD-2) will manage the HUF. If a male member is not available, the management can be carried out by one of the daughters or an appointed representative, but the bank will often treat the position as one of managerial control rather than the traditional title of Karta.
### **Summary**
1. **Post-Death of Mr. H:** - The HUF can continue with W, MD-1, and MD-2. W will act as the Manager, and the HUF’s records and bank accounts need to be updated accordingly.
2. **Post-Death of W:** - The HUF will continue with MD-1 and MD-2. They will manage the HUF and inherit the rights in the HUF.
3. **Continuing the Bank Account:** - Submit the required documents to the bank to update the account and reflect the new managing members.
It’s always advisable to consult with a legal advisor or a chartered accountant to ensure compliance with legal and procedural requirements and to address any specific concerns related to the continuation and management of the HUF.
CAclubindia
