Kapil Tiwari (export executive) 05 April 2014

Owner of flat after death of mother

Dear Sirs, this could be a slightly different query.

1) A woman purchased a flat in the year 1998. It is "evident" that she paid 100% of the purchase value. In all the Income Tax Returns that she has been filing, she has been paying the full tax on the rental income which has been coming (and showing the full rent as her income). In the recent IT Return forms (ITR-2), she has also declared herself as 100% owner of the house property (there is no co-owner).

2) Possibly for the sake of "emotional/material security", she added her daughter-in-law's name as (a) joint account holder of the flat, and (b) nominee of the flat.

3) Now, after the death of the woman, what is the stake of the daughter-in-law in the property as a "joint holder"? Does she become the owner of the flat?

4) Now, after the death of the woman, what is the stake of the daughter-in-law as a "nominee"? I must add here that the woman has 2 sons and 2 daughters (successors) and that the family is Hindu.

5) The woman has left no written Will.

6) Finally, I wish to know the rationale behind making the same person a "joint holder" as well as the "nominee". Is such an arrangement normal and prevalent?

Dear friends, what is the natural fate of the flat and who does it belong to?

Grateful for your views and opinion. Thanks.

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3 Replies

Kumar Doab (FIN) 05 April 2014

Nomination does not override and supersede succession.

The right of legal heir/successors is not done away by nomination.

Nomination is the only hand which shall pass on the rights to legal heir.

>>>If deceased mother was 100% owner of the Flat: The 2 Sons, 2 Daughters being ClassI legal heir shall share the Flat equally amongst themselves.

>>> If the Flat was jointly owned by deceased Mother and Daughter in Law then the share of deceased Mother (50%) shall be equally divided amongst 2 Sons, 2 Daughters being ClassI legal heir of the deceased mother.

There are many threads on similar query that you may find relevant e.g;

https://www.lawyersclubindia.com/forum/Flat-nominee-vs-legal-heir-100243.asp#.Uz_-8UeBmXU

>>> If the share in flat was transferred to daughter in law properly and is on record then why should there be any doubt on her ownership.

However consult a local lawyer with copies of all documents on record.

Kapil Tiwari (export executive) 05 April 2014

Dear Mr. Kumar Doab, if the woman paid 100% money for the flat and the daughter-in-law paid zero amount, how does the daughter-in-law become joint holder? Daughter-in-law can be joint holder to carry out day-to-day operations for the old woman (like signing cheques,etc.) but if she has not paid 50% of the money for the flat, how does she become 50% joint holder of the flat/ property legally? Kindly give this a thought. Thanks.

Kumar Doab (FIN) 05 April 2014

It has been suggested that a lawyer may be consulted with copies of all documents on record.

The owner during her/his lifetime can give away her estate in a manner as she/he pleases e.g; by Gift deed...................................

If the arrangement was as only to look after day to day operations, and was not an ownership, then daughter in law is not an owner. The society might have admitted the daughter in law as a member of society to look after the day to day operations.......................................as posted by you.

From various other threads posted by you it is assumed that the Flat in question is at Mumbai.

Apparently you have gone thru Maharashtra Co-operative Societies Act, 1960 and the commentary in judgement posted in another thread referred above in this thread.

The learned court has precisely clarified that:

--nominee even after the share is transferred by the society does not become owner, as a successor/legal heir would be.

--Section 30 of the Maharashtra Co-operative Societies Act does not and can not provides for a special rule of succession altering the rule of succession laid down by the personal law applicable to the person concerned.

You may consult a local lawyer with copies of all documents on record and proceed further under expert guidance of the lawyer that has examined the record and inputs.