Property Rights: Who will be the owner of the property between the nominee and the heir, know what is the law..
Finance Minister Nirmala Sitharaman had recently asked banks to enter the name of the nominee in the accounts. Due to the lack of nominees, crores of rupees are lying unclaimed with the banks. Actually, the money of the account holder who dies is transferred to the nominee. In such a situation, a question arises whether only the nominee is entitled to the property of the account holder after his death. If so, then who are the successors or heirs?
Today we will talk only about the difference between a nominee and successor. A nominee is created for a specific purpose. This can be made by anyone. Actually, the heirs are the members of the dynasty or family, but if a person wishes, he can appoint a person outside the family as his successor as per his wish. The main difference between these two things is that if the name of the nominee is not registered, the bank cannot automatically declare anyone as the nominee. However, even if a person has not decided his successor, his children, wife or mother can inherit his property.
And what is the difference?
As we told you nominees are made for a specific purpose and apart from that thing, they do not get any right on any other property of any person. If a person makes someone the nominee of his bank account, then after his death that nominee will have the right only on the transactions or money of the bank account. The nominee will not have any rights on any other property. Succession is mentioned in the Hindu Succession Act 1956. All the property of the deceased is legally handed over to the heir.
More than one heir
If there is no nominee, then the property is distributed equally among the heirs of the deceased account holder. Even if an heir is already decided, this money will be divided equally among all the heirs. There are two types of successors. Class 1 successors and Class 2 successors. Class 1 heirs include mother, widow, wife son, and daughter. Father is the Class 2 successor category. The first right on a person's property lies with his Class 1 heirs.
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