Joint account operated after death

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nakul (Querist)
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23 June 2015 Dear all member,

I am writing here with high hopes!

The genesis of the entire situation is as follows:

Firstly: When a Joint Account was opened with a bank i.e A B C with anyone or survivor clause/mandate in the year 2005. The sole/ joint account holder (A) left for Uk and never returned to India. The operations of the said accounts were continued to be operated by (B) and the official of the bank.

Secondly: In the year 2007, the sole joint account holder expired in Uk and the rest of the account holders did not informed the banker of his demise and continued to operate the account same as ABC.

Thirdly: There were some investments made in the name of A in other banks (the deceased account holder) thereafter B and C closed the said investments in the year 2010 and received the amounts through crossed named cheques made in the favour of A. And subsequently depositing the said cheques in the Joint Account still ruining in the name of ABC and latter swindled away the amounts, so received.

My question is :-

Once the Sole/Joint Account holder has already expired in the year 2007, can the operation of the said Joint account continued by the other account holders in a case of anyone or survivor mandate?

As they kept the banker in shadow regarding the death of the sole account holder, does the other account holders attract any any penal charges and depositing cheques from other financial institutions that were made in the favour of A after his death?

Your precious advice is much desired.

Thank you so much.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 June 2015 1 The joint account can be continued by other account holders in a case of anyone or survivor mandate.
2 Other account holders are liable for prosecution in obtaining cheque in favor of A after his death and swindling the money.

nakul

nakul (Querist)
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23 June 2015 Dear Seetharaman,

Much appreciated!

Just a quick note, I have recently gone through an article which states as above and is reproduced as :-

"Joint Account is an account opened by two or more persons. At the time of opening the account all the persons should sign the account opening documents. Operation instructions may vary, depending upon the total number of account holders. In case of two persons it may be (I) jointly by both account holders (II) either or survivor (III) former or survivor. The instructions for operations in the account would come to an end in case of insanity, insolvency, death of any joint holders and operations in the account will be stopped.

After going through the above guidelines, in the case of death of the sole account holder (A) should not the operations of the said account ceased?

Little help this is so confusing!

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