Succession laws: Can grandchildren be appointed as Karta of Hindu Undivided Family (HUF)?
1 min read 02 Aug 2023, 11:08 AM ISTEldest daughter or grandson can become Karta of HUF bank account. Procedure includes declaration and death certificate.
PremiumMy grandfather was operating his HUF bank account in Syndicate Bank as Karta of the HUF and paying regular taxes. He passed away in June 2023 leaving behind two grandsons, two daughters, and his wife. His son (my father) passed away 12 years back. Who can now become the Karta of the HUF and carry on the account transaction? What is the procedure to follow with the bank in this case?
Answer: Under the Hindu laws the senior most adult coparcener becomes karta of the HUF. The same rule applies to the appointment of Karta after the death of an existing Karta. Earlier only male members were considered as coparceners and thus were eligible to become Karta of a HUF but after the amendment of the Hindu Succession Act, 1956, in September 2005 daughters and sons both are to be treated as coparcener. So seniormost daughter of your grandfather i.e. your eldest aunt can become Karta of the HUF. If any or both the aunts are unwilling or incapable to be appointed as Karta of the HUF, the eldest of you or your brother can become Karta of the HUF provided one is an adult.
No major formalities are required to be complied with. Though the next senior most coparcener automatically becomes the new karta of the HUF at times, statutory authorities may require a declaration from all members of the HUF declaring the eldest coparcener as the new karta of the HUF. Further, a declaration from the members of the HUF along with the death certificate of the old karta may be mandated by banks in order to give effect to the change of name of the Karta in the HUF's bank account. Let me tell no succession certificate is needed in the case of a HUF though some banks do insist on the same due to ignorance of the exact law.
Balwant Jain is a tax and investment expert and can be reached at jainbalwant@gmail.com and on @jainbalwant on Twitter.
