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S.K. Sachdeva (EXECUTIVE ENGINEER)     09 October 2011

Legal heirs for the transfer of shares of the deceased

My brother in law expired, 53 years in June, 2011.

He is left with his wife, one son (became adult in July, 2011 i.e. after death), one daughter (21 years).

He has 3 elder brothers. Father, 96 years is alive.

He and his wife had seperate Demat accounts in a bank (Same bank).

The present value in each account is more than 8 lacs.

Pl. intimate who is the legal heir.

Is it only his wife

or wife, son and father.

Or the brothers have any right.

Pl. intimate the formalities.



Learning

 17 Replies

sudalaimuthu, (Advocate and Tax Consultant sudalaipearls@rediffmail.com)     09 October 2011

hi,

    first of all, in the demat account maintained by the deceased had nominee name. it may be wife/son / any other else. the amount in the demat account will go by that.  generally ,  ithe legal heirs for the deceased are wife , son, daughter, mother, father. 

1 Like

Natarajan M (Advocate)     09 October 2011

The wife, son and daughter are the legal heirs of the deceased.  Brothers are not come under the purview of legal heirs in the presence of First Class Heirs under tghe Hindu Succession Act.

1 Like

Natarajan M (Advocate)     09 October 2011

Mr. Sudalaimuthu has stated that father is also the legal heir of the deceased.  To the best of my knowledge,  he is wrong.  He will not come under the category of First class heir.  If I am wrong, I request Mr. Sudalaimuthu to enlighten me how the father is the legal heir of the deceased husband while his wife and children and mother are alive.

1 Like

Anumita Sarkar (Tax Advisor/Litigator)     09 October 2011

i agree with advocate natarajan M. wife and daughter are the two legal heirs.

1 Like

ajay sethi (lawyer)     09 October 2011

in respect of demat account of shares did your brother in law make any nomination . if he  had made a nomination then nominee will get all the shares in demat account .

S.K. Sachdeva (EXECUTIVE ENGINEER)     09 October 2011

In that case, it is very clear that the brothers and the father of the deceased are not the legal heirs.

Thanks.

Pl. help us out in getting the heir/succession certificate.

S.K. Sachdeva (EXECUTIVE ENGINEER)     09 October 2011

Unfortunately not ..

ajay sethi (lawyer)     09 October 2011

if  no nomination then legal heirs will have to obtain succession certificate . where are you located?

ajay sethi (lawyer)     09 October 2011

 

Where nomination has not been made:
 
On death of the sole holder of the Demat Account, if a nomination has not been made by the deceased holder, the legal heirs or the legal representatives of the deceased can submit the Transmission Form to request transfer of all securities from the Demat Account of the deceased holder to their Demat Account. Legal heirs or the legal representatives can be one or many as determined by the court. Securities can be transferred to an existing Demat Account. Otherwise, they need to open a new Account. Go to Open Demat Account.
 
Legal heirs or the legal representatives are required to submit the following documents

a) A completed Transmission Form

b) A copy of the Death Certificate of the deceased holder duly notarized

c) A copy of the probate or letter of administration duly notarised, where the deceased has left a Will.

d) A copy of Succession Certificate duly notarised or an order of a court of competent jurisdiction, where the deceased has not left Will.
e) Closure request & DIS of the deceased’s account for transfer of shares

S.K. Sachdeva (EXECUTIVE ENGINEER)     09 October 2011

My sister lives in Zirakpur, Punjab. Her old address registered in DEMAT a/c. is in Chandigarh.

ajay sethi (lawyer)     09 October 2011

you will have to contact a local alwyer in chandigarh to obtain succession certificate from courts

1 Like

Natarajan M (Advocate)     09 October 2011

Mr. Sachdev.

You need not spend huge money in obtaining the Succession Certificate.  Succession Certificate is meant for only "Debts".  So, ask the wife, her daughter and son open a single Demat Account.  Produce the Death Certificate and Legal Heirship Certificate to the Share Trasnfer Agent with a request to transfer the shares stands in the name of the deceased to the newly opened account.  The Transfer agent may ask some Indemnity Bond etc.  Furnish the same.

If the Share Transfer Agent refused to transfer the shares, consult your local advocate and he will do the needful.

1 Like

S.K. Sachdeva (EXECUTIVE ENGINEER)     09 October 2011

Thanks. But my sister i.e. the deceased's wife is already having a Demat account in the same bank (a seperate account), where he was having the account. Can the shares be tranferred in her account or should we open a new joint account in the name of wife, son and daughter ?

Natarajan M (Advocate)     09 October 2011

First, Open a Joint Demat accounts in the names of wife and her 2 children and then begin the transfer process.

Account in the name of wife alone is  not sufficient to transfer the shares.

1 Like

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