If both the account holder and the nominee die, who will get the money deposited in the bank?

Often when we open an account in a bank, we definitely give the name of a nominee, so that if the account holder dies, the money goes directly to the nominee. But think, if for some reason both the account holder and the nominee die, then who will get all the money deposited in that account?

This question comes to the mind of many people, but very few people know the answer to it. What do the bank rules say in this matter? Today, we will understand it in easy and common language, so that if ever such a case happens with your family or someone you know, then you are prepared with complete information. So let's go...

When the nominee is also not there, then who gets the money?

If the account holder dies and the nominee is alive, then the bank transfers the money to the nominee. But if the nominee also dies, whether simultaneously or after some time, then the matter becomes a little more serious.

In such cases, the bank gives the money to the person or people who are the legal heirs of the account holder. Legal heirs are those people who are directly related to the family, such as wife or husband, son or daughter, parents, or siblings.

What documents have to be given to the bank?

First of all, you have to inform the bank about the death of the account holder and the nominee. Along with this, the death certificate and the identity documents of the people who are claiming the money, such as Aadhaar card, PAN card, etc., have to be submitted.

After this, the bank can ask you for some more documents, like a Legal Heir Certificate or a Letter of Disclaimer in which the rest of the family members say that they are not claiming that money.

If the matter is big or there are more claimants, then you may have to get a Succession Certificate from the court.

If a Will is made, who will get the money?

If the account holder has made a will, which states who will get the money after his death, then the bank will give the money on the basis of that. But if there is no will, then the money is distributed among the family members according to the Indian Succession Act (Hindu Succession Act, 1956).

For example, the husband or wife and children can get an equal share. If there is no husband/wife, then parents, siblings, etc. are considered legal heirs.

What happens if no one claims?

If no legal heir comes forward or claims for a long time, then that amount goes to the government after a certain time. However, this happens in very few cases.

Most people are not aware of these rules related to banking
There are many people who do not have complete knowledge of the rules related to banking, especially in cases where it is not clear who will get the money after death. Therefore, if you or any member of your family has a bank account, it is very important to understand this information and keep your documents updated in time.

Every account holder must add a nominee to his bank account. If possible, a will should also be prepared. Also, tell the family members where the important documents are kept, so that there is no problem.

Disclaimer: This content has been sourced and edited from NDTV India. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.