Huf

Gopal Ranjan Panigrahi (Querist) 30 January 2012 This query is : Resolved
There being a HUF account in Bank wherein there being two members only X & Y.

X being the Karta dies leaving no will, nominee in such HUF appl`n etc .

Y being wife of deceased X puts up an application before Bank to run the HUF

What should the Bank do as per law

i) Because of death of Karta close the HUF account.In such case who will claim the amount in such HUF amount.

II) ALLOW X being the deceased wife as also being the Member to operate the account as Karta

Please suggest the legal poistion.

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Raj Kumar Makkad (Expert) 30 January 2012
1. HUF shall not cease to exist because out of 2 members, one died so no family remains and thus HUF account shall have to be closed and its accumulations shall have to be given to the sole existing member of HUF.

2. As replied above.

prabhakar singh (Expert) 01 February 2012
A single surviving member can not continue the HUF so close the a/c withdraw money inform ITO of its dissolution if it was being assessed.

J K Agrawal (Expert) 03 February 2012
Husband and wife do not constitute an HUF. at least two male members are necessary. so the account seems to be not of HUF but may be a Joint account.

if so, as per terms of account, like 'either or survivor', you are regulated. Please consult your bank manager properly.