Legal Rights and Inheritance: Property Claims and Nominee Authority Explained

Key Takeaways:

1. Nominee Authority: The assignment of a nominee is sufficient to facilitate transactions in mutual funds and shares after the demise of the investor.

2. Claiming Parental Properties: Class I legal heirs have the right to stake a claim in parental properties if the parents died without making a will, provided relevant documents and details of assets are available.

3. Distribution of Ancestral Property: In the absence of a will, the distribution of ancestral property is governed by the Hindu Succession Act, with assets being divided equally among living siblings and the children of deceased siblings sharing the portion that would have been allocated to their parent.

Based on the information provided in the document, I can offer insights into the scenarios presented:

1. Nominee’s Rights in Shares and Mutual Funds After the Primary Account Holder’s Death:

As per the document, the assignment of a nominee is sufficient to facilitate transactions in mutual funds and shares. Upon the demise of the investor, the shares and mutual funds will be transferred to the nominee’s name. Therefore, if your daughter is the nominee for your shares and mutual funds, she would have the authority to buy or sell these assets after your demise.

2. Claiming Parental Properties Without a Will:

In the case of the 57-year-old woman and her 60-year-old sister, as class I legal heirs, they have the right to stake a claim in their parents’ properties if their parents died without making a will. However, if the properties were gifted to someone during their parents’ lifetime, it may be difficult to claim a share in these or challenge the gift. To initiate legal procedures for staking a claim in parental property, they would need relevant documents, deeds, statements, and details of assets in which the legal heirs hold a claim.

3. Distribution of Undivided Ancestral Property:

In the case of the undivided ancestral property in Mangalore, an oral or verbal will is not considered valid, except for specific situations mentioned in the Indian Succession Act, 1925. In the absence of a will, the distribution of property is governed by the Hindu Succession Act. The assets would be divided equally among living siblings, including the mother, with the children of deceased siblings sharing the portion that would have been allocated to their parent, based on the provisions of the Act. Therefore, the mother can claim her share in the property, but her children cannot make any claim while she is alive.

It’s important to note that the responses provided in the document are based on limited facts and should not be considered as legal advice. It is advisable to consult a legal practitioner after presenting full facts and documents for accurate guidance.

FAQ

Q1: Can a nominee buy or sell shares after the primary account holder’s death?

A1: Yes, the assignment of a nominee is sufficient to facilitate transactions in mutual funds and shares after the demise of the investor.

Q2: Do I have grounds to claim my share in parental properties if my parents died without making a will?

A2: As a class I legal heir, you have the right to stake a claim in parental properties, but it may be challenging if the properties were gifted during your parents’ lifetime.

Q3: How is undivided ancestral property distributed in the absence of a will?

A3: In the absence of a will, the distribution of ancestral property is governed by the Hindu Succession Act, with assets being divided equally among living siblings and the children of deceased siblings sharing the portion that would have been allocated to their parent.