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NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Basics of Estate Planning

Mr. Raghunath Iyer, a 62-year-old widower, has two adult children. He dies without leaving a will and is a Hindu. His estate includes a flat and bank deposits. What is the broad position regarding his estate?

With no will, the estate passes by intestate succession under the deceased's personal law. For a Hindu, Class I heirs such as children inherit first. The government takes it only if no heirs exist, and a nominee does not decide distribution.

  1. AIt devolves by intestate succession under the personal law, with Class I heirs such as the children inheriting firstCorrect
  2. BIt passes entirely to the government as no will exists
  3. CIt is distributed as decided by the nominee in his bank account alone
  4. DIt is divided by the executor named in a will drafted by the bank

Explanation

When a Hindu dies intestate, the estate goes by the Hindu Succession Act. Class I heirs, which include children, take first. The government gets the estate only if there are no heirs, and a nominee is generally only a custodian, not the owner, of the assets.

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