Indian Succession Act

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The rights of a legal heir supersede the rights of a nominee
Source: Livemint.com

The Private Client team at Cyril Amarchand Mangaldas shares their comments and opinions in an article in the  following Q&A which was published by the Mint Newspaper on 07th July, 2021 and the online edition of the same can be found here.

My father and mother passed away after they came down with covid. My father had made a registered Will in 2015. According to that document, my nephew has been named the claimant of all his liquid assets. However, after 2015, my father declared me as his nominee in almost all his bank accounts. Under these circumstances, who is the rightful claimant of my father’s liquid assets, my nephew or myself?

—Name withheld on request

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Continue Reading The rights of a legal heir supersede the rights of a nominee

If your aunt wants to bequeath her house to your mother, she will have to execute a will

The Private Client team at Cyril Amarchand Mangaldas shares their comments and opinions shared in an article in the  following Q&A which was published by the Mint Newspaper on 18th February, 2021 and the online edition of the same can be found here.

My 70-year-old maternal aunt is unmarried and has a house in which she, my mother, younger brother and I have been staying together since 2002. The aunt is my maternal grandfather’s sister’s daughter. My mother has an elder brother too. My aunt inherited the house from her mother. What will be the status of the house when she passes away? Will my mother still have the right to stay in it? My mother and aunt have an “either survivor bank account” and locker, in which they keep their money and valuables. What will happen to that account in case of my aunt’s death?

—Name withheld on request

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Continue Reading If your aunt wants to bequeath her house to your mother, she will have to execute a will

A Will is one of the most frequently used tools in the process of succession planning. A Will is made by testators at the appropriate stage(s) of their life, and usually benefits family. However, a fear that looms large in their mind is the risk that someone may challenge the Will, causing it to get stuck in the labyrinth of the Indian court system. This fear is likely to be more acute when the testator knows that there is a specific person, either within the family or outside, who may challenge the bequests (or lack thereof!) under the Will. Unfortunately, there are many instances of such messy and protracted disputes. The main victims who suffer in these disputes are the testator’s family – they will not inherit the estate until the dispute is settled. Hence, the testator’s fears are completely justified.

To avoid these consequences, one option the testator can explore is entering into a contractual waiver with such persons – whereby any one or all of the beneficiaries (those who may benefit under the testator’s will, family or non-family) forego their right to challenge the Will. This would mean that the family can inherit the estate smoothly and quickly, without dispute or hassle.

But why would a beneficiary agree to do so? It ultimately comes down to a commercial decision and negotiation. Beneficiaries will be concerned that certain assets or amounts from the estate should come to them (for reasons which may not always be robust, or which may withstand a deeper legal scrutiny). If the testator can agree to meet such requests through the Will, or even by way of a lifetime transfer, then the beneficiaries may be willing to enter into a contractual waiver of their right to challenge it. But this is a commercial decision that needs to be taken by both parties. Testators are ultimately buying peace for their family after death. This article further explores the legality and practical aspects of such a waiver.

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Continue Reading Can You Waive Your Right to Challenge a Will?