Why did bank release money without heirs' legal clearance?
Deceased was a sole account holder. Nominee was her son. Bank issued the payment nominees joint account. Is this permitted without the bank getting a clearance from the heirs, or an affidavit declaring the heirs
A nominee is liable as the trustee of the funds, not as the owner, when the sole account holder dies. According to banking policy, when a bank recognizes a nominee, it can pay the registered nominee and does not require any legal clearance or affidavits from other heirs. This is supposed to expedite the settlement of claims and avoid delays. The purpose of this payment is not to determine ownership of the money, as other rightful heirs would have standing to require the nominee to account for their share. The bank's move of giving the funds to the nominee is not to determine who the legal heirs are.
A nominee is not the owner of the money. The bank should not release the money without the consent or affidavit of all legal heirs. You can send a legal notice to both the bank and nominee and file a court case to claim your rightful share. Complaint can also be made to the Banking Ombudsman. It is advised to consult an expert lawyer who will assist you in understanding your rights and options. For further legal assistance contact us on our helpline number.
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