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

Mr. Raghunath Iyer, a Hindu resident, dies without leaving a valid will. His estate is governed by the rules of intestate succession. Which statement best describes how his self-acquired property would devolve?

A Hindu man's self-acquired property on intestacy goes first to his Class I heirs under the Hindu Succession Act, such as widow, children and mother, in equal shares. Nomination does not override succession, and there is no preference for the eldest son.

  1. AIt passes first to his Class I legal heirs under the Hindu Succession Act, who take simultaneously and in equal sharesCorrect
  2. BIt passes entirely to his eldest son as the head of the family
  3. CIt is taken over by the government since there is no will
  4. DIt is distributed as per the nomination made in his bank accounts and mutual funds

Explanation

For a Hindu male dying intestate, self-acquired property goes first to Class I heirs such as the widow, sons, daughters and mother, who share equally. There is no primogeniture rule, and the government takes property only if there are no heirs. A nominee is generally only a custodian for the legal heirs and does not decide ownership.

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