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anil kumar (service)     05 February 2011

Dear Mr. Sirisha,

First of all you should find out the rules applicable in the establishment of your sister as to whether the nominee is only for the purpose of easy settlement or whether nominee(s) become the owner of the funds, i.e PF, Gratuity and other sums payable to nominee by the employer. Ordinarily, a nominee is meant to merely receive the money and to give it back to the rightful legal heir as per the law of succession or the will of the deceased. Your sister's husband would be the legal heir to the entire amount receivable in respect of his deceased wife. Parents of the deceased would not be the legal heirs and as such even if they happen to be the nominees the amount is ultimately payable or belongs to the husband, if she died issueless.   Even in some establishments  the PF, Gratuity etc. rules provide that a member has to compulsorily nominate one or more persons belonging to his/her family  and that nomination previously made in favour of parents/brothers etc. prior to marriage in favour of persons other than those belonging to the family has to be modified and in the absence of such an action it would be treated as void after the member acquires a family. Therefore, unless the sister has by will (testamentary disposition) has bequeathed the sums receivable from her employer in favour of the parent(s)/Nominees, the husband would be the sole successor to receive the amount payable by her employer towards service benefits. I hope the position would stand clarified.

Arvind Singh Chauhan (advocate)     05 February 2011

Mr. Anil kumar is quite right.

Avinash Kumar Sharma (Sr. Manager HR)     09 February 2011

Mr. Anil Kumar has rightly suggested. Nominee is only considered as receiver of the amount. He has to give it to the class one heir of the deceased after receiving it from the department. In case of married female husband and children are class one heir according to Hindu Succession Act. So husband is the only legal heir in this case.If you still have any doubt it is better for you to consult legal expert.

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