Tuesday 12 June 2012

What to do with a small bank balance of deceased

Q. As per SBP directives funds upto Rs.100,000/- lying in deceased bank account can be released to legal heirs against Bond of Indemnity favoring bank without obtaining Court's Succession Certificate. Please advise as to how bank would know actual total number of legal heirs of deceased because an instance has occurred where after release of funds by the bank other legal heirs approached the bank demanding their share in deceased's funds.

In such a case you can initiate proceedings against persons informing the bank wrongly.. Bank can demand family registration certificate of the deceased along with death certificate before releasing funds.. Similarly many other documents can be demanded in order to make sure that the funds are released on the name of real legatees of the deceased. In routine banks issue NOC on the name of one of the legal heirs that is willing to withdraw the funds. For that they also take indemnity bond from such person.

In case such person informs the bank wrongly, criminal proceedings can be initiated against such person. However, the better thing is that the banks should invite all the legal heirs personally for receiving their due shares so that the controversy do not arise from the start.

For more do consult me at legal-experts@live.com

Regards,
Salman Khan Golra
Advocate High Court

No comments:

Post a Comment

Contact Lawyers Network

If you have any queries related with this post you can contact at lawyergolra@gmail.com

Regards,
Salman Yousaf Khan
CEO
Lawyers Network
+92-333-5339880