No Will, No Nominee? Here’s How Families Can Claim Money From Bank Deposits After Death

Many families struggle to access fixed deposits and bank savings after the death of a loved one. Financial experts say timely nomination and proper documents can prevent lengthy legal complications later.

The death of a parent, grandparent or close family member is emotionally painful, and during such times many families are often unaware of the legal and banking procedures required to claim money kept in fixed deposits (FDs) or bank accounts.

According to financial experts, the process becomes much easier if the deceased person had already registered a nominee in the bank account or FD. However, when there is no nominee or no written will, families may face additional paperwork and even court procedures.

First Check Whether A Nominee Exists

Banks first verify whether a nominee was registered in the FD or bank account. If a nominee’s name is available, the bank generally releases the money after checking the death certificate and identity proof of the nominee.

However, experts clarify that a nominee is not considered the final owner of the money. The nominee acts only as a trustee until the amount is legally distributed among the rightful heirs.

What Happens If There Is No Nominee?

If no nominee has been registered, the process becomes more complicated. In such cases, banks usually ask for a legal heir certificate to identify the rightful claimants.

Under the Hindu Succession Act, the wife, children and mother of the deceased are generally considered first-level legal heirs. Banks verify these details before processing the release of funds.

Documents Usually Required

To claim the FD or bank deposit amount, families may have to submit:

• Original death certificate of the deceased
• FD receipt or bank account details
• Identity and address proof of legal heirs
• No Objection Certificate (NOC) from other heirs if only one person is claiming the amount

If all family members agree and documents are complete, the process is usually faster.

Court May Be Needed In Disputed Cases

If the deposited amount is large or there is a dispute among family members, banks may ask for a succession certificate from the court.

Since this is a judicial process, it can take considerable time and may involve legal expenses, lawyer fees and additional documentation. However, for smaller amounts, some banks may simplify the process through indemnity bonds or guarantees.

Financial experts strongly advise people to register nominees in all bank accounts, FDs, insurance policies and investments.

They say nomination helps families avoid unnecessary legal stress during emotionally difficult periods. Experts also recommend regularly updating nominee details after marriage, childbirth or major family changes.

Families are also advised to directly visit the concerned bank branch and understand the institution’s specific rules, as procedures may vary slightly from one bank to another.

Disclaimer: Banking procedures and succession rules may vary depending on the account type, religion-based succession laws and individual bank policies. Readers are advised to consult the concerned bank or a legal expert for case-specific guidance.