Who can claim the money when account holder and the nominee, both have died?

 

Who can claim the money when an account holder and nominee, both have died?

by Rajeev Pathak

Someone has asked,

Account holder dies, nominee dies who will receive bank money/ post office money? 

Let me put it this way:

There may be a situation that an account holder who had made an investment in a post office or with a bank or with a company or with a mutual fund, dies. He had made a valid nomination.  

Unfortunately, the nominee has also expired. He might have died even before the death of the account holder or after the death of the account holder, but before making a claim for the payment of the money as a nominee. In such a situation the question arises who can claim the amount of an investment made by the account holder in a situation when the account holder himself and his/her nominee, both have died.

I am of the opinion that once the nominee has expired, he has no relevance as for as this particular account is concerned.  As such, legal heirs of a nominee will also not have any right over the money deposited by the account holder.

Now the question is,

who will get the money left by the account holder?

The simple and straight reply is, if the account holder had made any will, the money is to be paid as per the will, by completing the procedure applicable to the execution of a will.

If the deceased account holder had not made any will, the money will be paid to the legal heirs. For the payment of money to the legal heirs, there are well-defined procedural guidelines.

In this case, the legal heirs should contact the concerned bank/post office. The office will give them a Deceased Account Claim Application form. The legal heirs of the account holder should complete the application form in all respect. The form includes the names, addresses, occupation, and the relationship with the deceased account holder, etc. of all the legal heirs.

The claimant also has to attach the following documents along with their claim application:

• Death certificate of the account holder,
• KYC documents as proof of identity and address of the person, claiming the amount, and
• Copies of the passbook/ term/fixed deposit.

Please note if the amount is more, a stamped indemnity will be required along with the signatures of two witnesses. In case if the amount involved is very high or there is a dispute in legal heirs, the bank/post office may ask the claimant to bring an order from the competent court.

Hope It has been made clear who will get the amount of a deceased account from a bank/post office when the account holder and nominee, both have expired.

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