Inheritance and Will Rules in India: Following the demise of a relative or family member, a Will plays a crucial role in the distribution of assets such as bank deposits, investments, mutual funds, and real estate. However, even when a Will exists, heirs often face lengthy paperwork and legal hurdles in transferring the assets to their names due to a lack of legal awareness.

A major misconception arises from equating a 'nominee' with a 'beneficiary' of a Will. Here is an explanation of how to claim assets through a Will in India and the rules and documents required for the process.

A Nominee is Not the Owner: A Major Misconception

Most people believe that the person named as a nominee for a bank account, mutual fund, or shareholding becomes the actual owner of that asset. Legally, this notion is entirely incorrect. In the eyes of the law, a nominee acts merely as a trustee or custodian; their role is simply to manage the asset.

True ownership rights belong to the person named as the beneficiary in the Will. If the nominee and the beneficiary are different individuals, the nominee is required to hand over the asset to the rightful beneficiary named in the Will.

What is Probate and When is it Required?

Probate is a legal certificate issued by a court that confirms the authenticity and validity of a Will.

When is it required?: Financial institutions and authorities may demand probate if there is a family dispute regarding the assets, if the validity of the Will is challenged, or if the estate involves significant assets or immovable property.

Is it mandatory in every case?: Probate is not required in every instance; however, it may become mandatory for certain property matters in presidency cities like Mumbai, Kolkata, and Chennai, or under the specific rules of certain institutions.

Documents Required to Make a Claim

Even when a Will exists, having the correct documentation is essential for the transfer of assets.

A list of key documents is provided below:

Death Certificate: Original or certified copy.
Copy of the Will: Original Will or probate (if applicable).
Proof of identity and address of the heir(s): Aadhaar card, PAN card, passport, etc.
Legal Heir Certificate: Banks or institutions may require this in certain cases.
Bank and Mutual Fund-Specific Rules

Banks, insurance companies, mutual fund houses, and property registration authorities have their own distinct protocols for the claims process. Before initiating the process, carefully review the claim forms and guidelines of the respective bank or financial institution. Submitting all required documents together helps prevent the rejection of the claim application and ensures a faster completion of the process.

Compile Details of All Assets Beforehand

A Will often lists various types of assets, such as savings accounts, fixed deposits (FDs), demat accounts, real estate, and insurance policies. Before commencing the claims process, legal heirs are advised to prepare an organized list of all the deceased's assets, accounts, and investments to ensure that no asset is overlooked during the claim process.

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