Legal Heir

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Bhavesh

Accounts

141 Points Posted on 21 July 2020

Hello Friends, One of my friend who has FD's in bank has a Joint account with his father. his father has to remain ill and has died long back ago, what consequences he has to face in this case as any legal formality is required from my friends end, whether he will receive his FD's in absence of his father. Please put a light on if some senior member from one family die's without any legal documents what consequences one has to face.

Replies (3)

Quick Summary

This discussion addresses the complexities of joint bank accounts, particularly Fixed Deposits (FDs), when one account holder passes away. It clarifies that the process depends on how the joint account was set up: 'either or survivor' allows the surviving holder to operate the account after closure, while 'strictly jointly' requires the nominee or legal heirs to jointly manage the account with the survivor. If no nominee is listed, legal heirs must obtain a court order to claim the deceased's share.

Basant

Legal

56 Points Posted on 21 July 2020

In my view, upon informing the bank and submitting d death certificate the deceased s name will be struck off and the proceeds will accrue to the surviving holder. However bank may ask for an undertaking cum indemnity for which they would provide d format.

Sagar Patel

Tax and Business Consultant

5533 Points Posted on 21 July 2020

Joint accounts are opened in two modes.Under mode 1: either or survivor can operate, which means either or the account holder can operate.Even if one of them dies, the other joint account holder can operate to withdraw money, but the account needs to be closed. In second case wherein the mode of operation is strictly jointly, wherein signature of each of account holders is required for operation. In these types of account, when one of the account holder dies, his nominee (stated while account opening form is filled) and other account holder come together to operate the account for withdrawal of money and account is closed. If nominee is not mentioned, then the legal heirs have to apply in court and get notification from court as legal heir of the deceased and operate the account to withdraw balance in account and final closure.

Basant

Legal

56 Points Posted on 21 July 2020

In my view you need to look at this RBI master circular.https://m.rbi.org.in//scriptts/BS_ViewMasCirculardetails.aspx?Id=5830&Mode=0

Kindly refer to point 4.4.2. The rights of a nominee with reference to a joint account including either or survivor arise only after the death of all the joint depositors.