Rule for fixed deposit account inheritance
2 years ago
I (son-in-law) have made a number of fixed deposit accounts (from my salary savings) in various nationalized banks with my Mother-in-law as first holder, me as the second holder and my wife as the third holder. This was done mainly to take benefit of income tax. However, can my mother-in law make a will and give all these fixed deposit amounts to my wife in her absence or in case of my separation with my wife. In case of her natural demise without a will, do I (son-in-law) becomes the first name in these fixed deposits automatically as per banking rules? Thanks.
Ayantika Mondal @ Prime Legal
Responded 2 years ago
A.Hi,
Your mother-in-law has the legal authority to make a will giving all of her assets to your wife. If she dies without leaving a will, her estate will be distributed according to the laws of inheritance and succession.
Thank you very much.
Your mother-in-law has the legal authority to make a will giving all of her assets to your wife. If she dies without leaving a will, her estate will be distributed according to the laws of inheritance and succession.
Thank you very much.
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A.Hi,
Your mother-in-law can rightfully create a will transferring all her property in the name of your wife. In the case of her demise and no will made, then her property will be divided as per the inheritance and succession.
Thank you.
Your mother-in-law can rightfully create a will transferring all her property in the name of your wife. In the case of her demise and no will made, then her property will be divided as per the inheritance and succession.
Thank you.
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A.Dear Sir,
Section 15 in The Hindu Succession Act, 1956
15. General rules of succession in the case of female Hindus.—
(1) The property of a female Hindu dying intestate shall devolve according to the rules set out in section 16,—
(a) firstly, upon the sons and daughters (including the children of any pre-deceased son or daughter) and the husband;
(b) secondly, upon the heirs of the husband;
(c) thirdly, upon the mother and father;
(d) fourthly, upon the heirs of the father; and
(e) lastly, upon the heirs of the mother.
(2) Notwithstanding anything contained in sub-section (1),—
(a) any property inherited by a female Hindu from her father or mother shall devolve, in the absence of any son or daughter of the deceased (including the children of any pre-deceased son or daughter) not upon the other heirs referred to in sub-section (1) in the order specified therein, but upon the heirs of the father; and
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Section 15 in The Hindu Succession Act, 1956
15. General rules of succession in the case of female Hindus.—
(1) The property of a female Hindu dying intestate shall devolve according to the rules set out in section 16,—
(a) firstly, upon the sons and daughters (including the children of any pre-deceased son or daughter) and the husband;
(b) secondly, upon the heirs of the husband;
(c) thirdly, upon the mother and father;
(d) fourthly, upon the heirs of the father; and
(e) lastly, upon the heirs of the mother.
(2) Notwithstanding anything contained in sub-section (1),—
(a) any property inherited by a female Hindu from her father or mother shall devolve, in the absence of any son or daughter of the deceased (including the children of any pre-deceased son or daughter) not upon the other heirs referred to in sub-section (1) in the order specified therein, but upon the heirs of the father; and
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A.Since the FD is in her name hence legally she is the owner of those FDs (partially) as per your joint account holder status and she can write a will for those FDs.
In case of her demise intestate, the bank will transfer the funds to the remaining holder of the account as per its policy but remember that the legal heirs of our mother-in-law will still have the right to claim their share from the FDs.
In case of her demise intestate, the bank will transfer the funds to the remaining holder of the account as per its policy but remember that the legal heirs of our mother-in-law will still have the right to claim their share from the FDs.
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Advocate Sinjari Bandyopadhyaya
Responded 2 years ago
A.For Income Tax purpose,your mother in law is considered as the holder of all those Fixed Deposits as she has the first name in those Fixed Deposits and therefore she alone has to file 15G/ 15 H form each & every year and it is obvious that those Fixed Deposits must be associated with a Savings Account where also your mother in law is the First Account holder.
Please take note that your Mother in Law can make Will in favour of her daughter considering her the beneficiary in respect of those FD sum and after your mother in law's death when your wife will have to file probate case to make that Will operative,then you don't have any right to be a party in that probate Suit due to lack of caveatable interest.
After your mother in law's death without having any Will,you and your wife being the joint holders will become the joint Owners of that account and if your name will remain as First account holder,then it will be presumed that you are the Owners of those Fixed Deposits.However,if the mode of operation is Either or Survivor,then your wife will also have right to operate it individually without your consent and can be able to encash the sum if the Bank's rules and regulations permit her to do so.
Please take note that your Mother in Law can make Will in favour of her daughter considering her the beneficiary in respect of those FD sum and after your mother in law's death when your wife will have to file probate case to make that Will operative,then you don't have any right to be a party in that probate Suit due to lack of caveatable interest.
After your mother in law's death without having any Will,you and your wife being the joint holders will become the joint Owners of that account and if your name will remain as First account holder,then it will be presumed that you are the Owners of those Fixed Deposits.However,if the mode of operation is Either or Survivor,then your wife will also have right to operate it individually without your consent and can be able to encash the sum if the Bank's rules and regulations permit her to do so.
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