When a bank account holder dies without appointing a nominee, family members or legal heirs may still be able to claim the money lying in the account. However, the process can involve additional documentation because the bank needs to establish who is legally entitled to receive the deceased person’s funds.
If you are wondering how to claim money from a deceased person’s bank account without a nominee in India, the process generally involves submitting the death certificate, proof of relationship or legal-heir status, KYC documents and other documents requested by the bank.
What Happens to a Bank Account When There Is No Nominee?
A nominee provides a mechanism for the bank to release the deposit after the account holder’s death, subject to the applicable process. However, the absence of a nominee does not automatically mean that the money is lost.
When there is no nominee, the bank generally asks the claimant to establish their entitlement as a legal heir or otherwise provide the documents required under the bank’s deceased-claim procedure.
The exact requirements can depend on the amount involved, whether there is a valid will, the relationship between the claimant and deceased, and the bank’s applicable policy.
Who Can Claim the Money?
If there is no nominee, the deceased person’s legal heirs may claim the balance.
Potential claimants can include:
- Spouse
- Children
- Parents
- Other legal heirs, depending on the applicable succession law
If the deceased left a valid will, the process may involve the executor or beneficiaries named in the will.
Therefore, being a family member does not automatically mean that one person can claim the entire balance. The bank may require evidence establishing the claimant’s entitlement.
Documents Required to Claim the Money
The bank may ask for some or all of the following:
- Death Certificate
A valid death certificate of the account holder is generally the first and most important document.
- Claim Form
The claimant usually needs to complete the bank’s prescribed deceased-account claim form.
- KYC Documents
The claimant may need to provide identity and address documents as required by the bank.
- Proof of Legal-Heir Status
Depending on the circumstances, the bank may request a legal-heir certificate, surviving-member certificate or another acceptable document establishing the claimant’s relationship or entitlement.
- Will or Succession Documents
If the deceased left a will, a copy of the will and additional succession-related documents may be required.
For some cases, the bank may require a succession certificate, probate, letters of administration or other legal documentation, particularly where there is uncertainty or a dispute regarding entitlement.
Step-by-Step Process to Claim the Money
Step 1: Inform the Bank About the Death
Contact the bank where the deceased person maintained the account.
Submit the death certificate and inform the bank that the account holder has died without registering a nominee.
The bank can then explain its applicable claim procedure.
Step 2: Obtain the Bank’s Claim Form
Ask the branch for the deceased-claim form applicable to an account without a nominee.
Some banks may make forms available through their websites, while others may require submission through a branch.
Step 3: Establish Your Legal-Heir Status
The next step is to demonstrate that you are entitled to claim the money.
Depending on the case, this could involve:
- Legal-heir certificate
- Succession certificate
- Probate of a will
- Letters of administration
- Affidavit or declaration
- No-objection or indemnity documents
The exact requirement should be confirmed with the concerned bank.
Step 4: Submit KYC and Supporting Documents
Submit the required documents along with the completed claim form.
The bank may verify the documents and conduct additional checks before releasing the funds.
Step 5: Complete Bank Verification
The bank reviews the claim and verifies the identity and entitlement of the claimant.
If multiple legal heirs are involved, the bank may require documents or consent from the other heirs depending on the circumstances.
Step 6: Receive the Eligible Amount
Once the bank is satisfied with the documentation and completes its internal process, the eligible balance can be released or transferred according to the applicable procedure.
What Is a Succession Certificate?
A succession certificate is a legal document that may be used to establish entitlement to certain debts and securities of a deceased person when there is no will or where such documentation is required.
It is generally obtained from the appropriate court.
However, not every deceased bank-account claim necessarily requires a succession certificate. Banks may have simplified procedures for certain claims, particularly where the amount involved is within their prescribed limits and there is no dispute among the legal heirs.
Therefore, do not assume that you must immediately approach a court. First ask the concerned bank what documentation is required for the particular account and amount.
What If There Is More Than One Legal Heir?
This is an important situation.
Suppose a deceased person leaves behind a spouse and two children. If there is no nominee, one family member generally cannot simply claim the entire balance as their personal money.
The bank may require documentation establishing the rights of the legal heirs and may ask for appropriate declarations, consent or other documents.
If the heirs disagree about who should receive the money, the matter can become more complicated and may require legal advice or court proceedings.
What If the Deceased Person Had a Will?
If the deceased left a valid will, the distribution of the money may be governed by the applicable succession process.
The bank may request a copy of the will along with probate or other documents where applicable.
The process can vary depending on the nature of the will, the amount involved and the applicable law.
What If the Account Has Become Inoperative or Unclaimed?
An old account may have become inoperative before the account holder’s death.
This does not necessarily mean that the money has disappeared. The legal heirs can contact the bank and follow its deceased-claim process.
If the deposit has subsequently become an unclaimed deposit and is covered by the applicable RBI framework, the claimant may still be able to recover it through the concerned bank.
Can a Legal Heir Claim the Money Without Going to Court?
Sometimes, yes.
For eligible claims, banks may have procedures allowing payment to legal heirs based on prescribed documents, declarations, indemnities and other requirements.
However, a court-issued succession document may become necessary when:
- There is a dispute between heirs
- The bank cannot establish the claimant’s entitlement
- The amount or circumstances require additional legal documentation
- There is a contested or unclear will
- The bank’s applicable policy requires a court order or certificate
Therefore, the simplest approach is to first contact the bank and obtain its written list of required documents.
Important Things to Remember
Before submitting a claim, keep these points in mind:
- Obtain an official death certificate.
- Inform the bank as soon as reasonably possible.
- Do not withdraw money using the deceased person’s ATM card or PIN.
- Keep copies of all documents submitted.
- Ask the bank for an acknowledgement or claim reference number.
- If there are multiple heirs, clarify everyone’s entitlement.
- Do not sign away your rights without understanding the document.
- Seek legal advice if there is a dispute among family members.
Conclusion
Claiming money from a deceased person’s bank account without a nominee is possible in India, but the claimant must establish their legal entitlement. The process usually starts by informing the bank, submitting the death certificate and claim form, providing KYC and legal-heir documents, and completing the bank’s verification process.
A succession certificate or other court document may be required in certain situations, but it is not automatically necessary for every claim. The exact process depends on the account, amount involved, legal-heir situation and the bank’s applicable requirements.
If there is no dispute among family members, completing the bank’s prescribed documentation can often make the process considerably easier. For disputed inheritance or complex succession matters, consulting a qualified legal professional is advisable.
