Salina (Sr Manager) 06 October 2016

Class 1 legal heir - mother

Hi, my husband passed away in 2012 without leaving a will. We are Hindus. I was told that apart from my son and myself my mother in law was also a Class 1 legal heir. My mother in law passed away in 2015 and I heard she has willed her share of my husbands property, demat shares etc to her eldest son. I was told by a lawyer that my mother in law was entitled to a share while she was alive but she cant bequeath that share to her other son .. My husbands flat continues to be in his name. The bank transferred my husbands demat shares to my account last week. Is my eldest brother in law entitled to a share in the property and demat shreas because of my mother in laws will?

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3 Replies

shobanbabu.B (company secretary and Legal) 06 October 2016

If the shares are currently in the name of the your deceased husband, then the will of your mother in law shall have no effect now.

Kumar Doab (FIN) 06 October 2016

>>> Owner can dispose the estate that he/she owns in his/her life time by a valid deed, in anyone's favor.

Last wish of the testator as in WILL, is supreme.

Mother is ClassI legal heir and owner of inherited estate.

She can dispose the estate that he/she owns in her life time by a valid WILL.

>>> Succession opens on date of death of owner.

On date of death the mother of your deceased husband was alive.

>>> However in case of Equity shares; unlike other estate, the nominee is sole owner after death of owner of shares.

If valid nomination exists, then nominee is not to devide the equaity shares amongst ClassI legal heirs/legal hiers/successors.

Who was owner of equity shares?

Madhu Mittal (Director) 10 October 2016

Respected Sirs,

With due respect to everybody, I have seen an article related to present query, it may be helpful in getting decisions:

https://www.mondaq.com/india/x/406588/wills+intestacy+estate+planning/Nominee+Shareholders+Have+No+Right+Of+Inheritance+Says+The+Bombay+High+Court

India: Nominee Shareholders Have No Right Of Inheritance Says The Bombay High Court

Last Updated: 23 June 2015

Article by Phoenix Legal

In an erudite judgment by Mr. Justice G.S. Patel, the Bombay High Court in Jayanand Jayant Salgaonkar vs. Jayashree Jayant Salgaonkar has held that a nominee of shares and securities of a company merely holds the securities in trust, and as a fiduciary on behalf of any claimants under the laws of succession.

The court was compelled to analyse the question of law since it appeared that an earlier decision of the Bombay High Court in Harsha Nitin Kokate vs. The Saraswat Co-operative Bank Limited & Ors.1 (Kokate) was in direct conflict with the views of the Supreme Court of India on the subject. The decision in Kokatehas been held as incorrect by the court in the present case and in doing so, have reversed the understanding of the rights of a nominee shareholder.In an erudite judgment by Mr. Justice G.S. Patel, the Bombay High Court in Jayanand Jayant Salgaonkar vs. Jayashree Jayant Salgaonkar has held that a nominee of shares and securities of a company merely holds the securities in trust, and as a fiduciary on behalf of any claimants under the laws of succession.