Shikhar Khanna (IT) 07 October 2008

Change of KARTA under HUF

My father passed away this year and he had a HUF property. As he has left no will, my legal advisor asked me to create a family membership certificate attested by the local court and executed by the Disctrict Magistrate of Kanpur so that I could operate the bank account of the HUF as the acting KARTA, me being the eldest male of the family. Please let me know if i need to posses any legal document to declare myself as the next KARTA for the same HUF account for any other legal matters like selling the HUF property. For eg. My father had invested some money into government bonds under the HUF account. How do i legally convey them that I am the new KARTA and how do i redeem the bonds after they are expired. Please let me know if the FAMILY MEMBERSHIP CERTIFICATE is enough to prove my identity as the new KARTA or i have to posses any other legal document for the same ?

Moreover i do not want to file for succession in court because my legal advisor advised me that it takes a lot of time and the expenses are huge. Please assist..

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6 Replies

Ajay kumar singh (Advocate) 07 October 2008

You will certainly have to obtain the succession certificate.You have no alternative.You have to get "no objection" from your co-sharers for obtaining the succession certificate.

SHEKHAR MISHRA (public servant) 07 October 2008

You have no other option .Get the Succession certificate.

Shikhar Khanna (IT) 07 October 2008

Thanks for the prompt replies.

Please do correct me if I am wrong. I spoke to one of the bond issuers where I am currently holding the bonds from HUF account. They told me to get a NOC from the family members and a signature attest from the bank where the HUF account is open and they said this would be sufficient to identify me as the new KARTA. Do you still feel I would need a Succession certificate ? Also I have heard that there is a huge cost in getting a succesion certificate from the court around 5% of the total asset value plus the legal charges. is that true ?

J. P. Shah (RTI & CONSUMER ACTIVIST) 09 October 2008

IN CASE OF HUF WHEN THE KARTA DIES, AUTOMATICALLY ELDEST MALE PERSON BECOMES KARTA.. THE EXISTING ADULT CO-PARCENERS HAVE TO DECLARE THAT OLD KARTA MR.________HAS EXPIRED ON______ [DEATH CERTIFICATE ENCLOSED] .MR _________BEING ELDEST MALE CO-PARCENER AS ON DATE, HE WILL BE KARTA OF __________[HUF] WITH IMMEDIATE EFFECT. HIS SIGNATURE AND PHOTO ARE ATTESTED HEREUNDER: THIS TYPE OF DECLARATION SHOULD BE SUFFICIENT AT LEAST FOR BANKS.