Info about nomination vs will vs succession law
Sanjay
(Querist) 14 December 2013
This query is : Resolved
Dear Sirs/ Madams,
Request your kind help in advising about or any information and any links or docs or ppts about the precedence in various types of scenarios for various types of holdings between
Nomination Vs Will Vs Succession Law
Basically the focus point here is
(i) if there is a declaration in will then will it supercede both nomination and Sucession Law (as applicable)
(ii) If there is no mention in will then which will take precedence over the other.
Thanks in advance for the help.
Regards
ajay sethi
(Expert) 14 December 2013
nominee is only a trustee for legal heirs . will is final testament of testator as to disbursal of properties on his demise .
will supersedes nomination . it is only if person dies without any will then succession law would be applicable .
Guest
(Expert) 14 December 2013
Mr. Sanjay,
Although your query was of academic nature, without mention of any problem, yet Shri Ajay Sethi has provided a very clear position for your understanding. Better discuss real problem, if any, you have.
Sanjay
(Querist) 14 December 2013
Dear Sir(s)/ Madam(s),
First of thanks to all of you for taking time to respond.
It is that one of my known persons is preparing the will. Incase of his death at earlier age.
He had a love marriage with a girl of different religion (but considered under “Hindu”) under Indian laws and is blessed with one daughter and is having his mother.
But since he wanted to ensure that part of the proceeds to be with his mother, part to his only daughter (but being minor is appointing trustee/ executor through will) and only a part to his wife, a part to be put in trust for providing education to poor people.
The fear factors here are
i) fear of possibility of extravagant spending incase, out of control leading to losses of his wealth for remaining family
ii) ousting of mother incase
iii) overtaking of the wealth by family members of in-laws (he having no brothers or sisters)
Some of the declarations/ nominations were made in name of mother before marriage and unchanged yet.
Some of the insurance policy nominations were made after marriage in wife’s name and very few include daughter’s name.
Hence he wanted to know if mention in “will” would bypass the nomination mentioned at various past times.
The “Will” is specifying details of the distribution to various parties of the proceeds of each various holdings.
He wants to prepare a will saying that the amounts (whatever at the time of death) in various holdings should be given to X, Y, Z basis and wishes it is distributed according to the will.
The holdings referred to here are as follows :-
(i) Provident Fund
(ii) Bank Accounts
(iii) Bank Fixed Deposits
(iv) Company fixed deposits
(v) Shares of listed companies (demat and physical form)
(vi) Gratuity
(vii) Moveable property
(viii) Immoveable property
The MAJOR QUESTION and CLARIFICATION required here is whether the person will have to specifically change each nomination or would a mention in the will do the needful of the entirety of his wishes.
With Best Regards and Thanks
ajay sethi
(Expert) 14 December 2013
will should suffice . will over rides nomination . nominee is only a trustee .
better change nomination too .
Sanjay
(Querist) 14 December 2013
Dear Sir,
Thanks a ton.
Now for the Provident Fund - if it is mentioned in Will to provide say 100% of the proceeds to the mother -
--- is this valid ?
--- hope this does not contradict any other provisions of Prov Fund.
Regards
Guest
(Expert) 14 December 2013
Dear Sanjay,
For payment of PF claim, the employer or the PF authority, as the case may be, can accommodate only the nomination or a succession certificate in the absence of any nomination. He will not entertain the 'will' directly in preference to the nomination as per the provisions of the PF Rules, unless orders of the competent court are prouced. The will holder can claim the proceeds only from the nominee by mutual consent or through court of law.
Raj Kumar Makkad
(Expert) 14 December 2013
I do agree with the advice of Ld. PS Dhingra G.
