Property inheritance in India is a huge issue which can be in disputes due to the nomination that was done in a will. A will is a legal document made by the owner of the property which includes all his possessions that will be transferred to the legal heirs after his death. However, if there is a nomination for the will then it takes a twist and leaves the legal heir into a dispute mode.
Basically, if the nominee for a property is a genuine one then the legal heir may get all that he/she is entitled to. The nominee has legal rights over the property and other assets but subject to some exceptions.
These exceptions include that any property which has a nominee in it will become the owner and the guardian of the property only until is handed over to the legal heirs. Nominee has no right to claim the property as his if the legal heirs are alive. The property rights in India differ than other countries. Since the properties and flats are governed by the cooperative societies act, it has defined that if an owner submits a nomination for the flat or the property then the nominee has the right to the property only until he/she hands over the property to the legal heirs.
However, in the case of shares and provident funds, the nomination has a different rule. The nominee becomes the owner of the assets and does not need to transfer it to the legal heirs in any circumstances. There are different ways to get this cleared. Every action will have a different course that needs to be followed. Let us look at them in detail.
When a will is in place and when it is not
When a will is in place and all the details have been mentioned by the owner; then the nominee is just a guardian of the property and will need to hand over the same to the legal heirs. However, in case if the deceased has mentioned that the nominee gets a set of assets, in that case the legal heirs have no right to claim the same from the nominee. If the nominee has been given the insurance claim post the death of the deceased, this can be rightfully claimed by the nominee only if the legal heirs do not claim it back from the nominee.
A will makes sure that the family members and legal heirs get what they should as per the wish of the deceased. But when a will is not available, there can be a difference of opinion among the legal heirs and other family members. Property and assets are all taken into disputes after the owner has passed away and causes a lot of grief to all. It is always advisable to make a will to ensure smooth distribution of the property and other assets.
A will should be the same as the nominations for a property. This makes the life easy for all as the person gets what he/she is entitled to. So, if the son has been the nominee for all the investments then he should only be mentioned in the will for all the ownership of investments. If the wife is the receiver of investments as per the will then the son gets nothing and may create a dispute.
To solve this issue, there is an easy format for all individuals, created by the lawyers which are easily available online or with any of the lawyers. Just fill them up and seal it with the laws as applicable. It makes the work easier and clears the air from who gets to keep the property.
If there is no will and a nominee is decided well in advance; then the nominee has the power to hand over the property to the legal heirs. This can again go into disputes if the nominee does not work responsibly. This can also lead matters into court which will then be scrutinized in detail and a verdict will be given. However, all this can take a long period and cause grief to all the members of the family. Therefore, a responsible nominee is a must for cases where a will is not available. All such things highlight the effects of the nomination in property inheritance.