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How to operate bank account when Karta of the HUF dies?

How to operate bank account when Karta of the HUF dies?

Karta (Manager) of HUF have sole authority over HUF account and also on every transaction on behalf of HUF account, made by each member of the family. Therefore, it is necessary to appoint a new Karta to allow operation in the account after the death of the Karta to allow further operation in the same account.

When the Karta of the HUF has expired then bank account remains the same subject to submission of declaration cum no objection letter to the bank from the new Karta and co-parceners . The letter shall provide the following information.

  1. Request to delete the name of deceased Karta from bank’s record (type and account number to be specified) with the copy of death certificate.
  2. Name of newly appointed Karta to be mentioned and his relationship with the deceased Karta.
  3. Request to register update the name of new Karta of the specified HUF account in place of deceased Karta and allow him to operate the said HUF account.
  4. No objection for appointment of (Name of the member) new Karta of HUF account
  5. The declaration cum no objection letter from co-parceners for deletion of name of existing Karta and appointment of New Karta to be signed by the new Karta and all the major co-parceners of the family.

In case of larger balance in the HUF account many banks obtain affidavit cum indemnity from surviving members and legal heirs with two guarantors confirming their acceptance to one of the members as a new Karta. Banks shall allow the new Karta to continue to operate the existing account on the basis of such documents, in HUF accounts. A similar procedure to be followed in cases where an account is to be closed and balance in the account to be paid to the new Karta. Document requirement may be different in different banks.

The Karta is traditionally the senior most male coparcener of the HUF.  When Karta of the HUF dies, the next senior male member takes over as Karta. If the senior most member gives up his right, a junior coparcener can become Karta of the HUF, with the consent of all other major co-parceners  as held by Supreme Court in Narendra Kumar J. Modi Vs CIT (1976) 105 ITR 109 (SC).

As per Hindu Succession (Amendment) Act, 2005 the daughters of a family who are governed by Mitakshara Law, also become co-parceners in the HUF property. The above amendment further gave the women the right of survivor ship via amended Section 6 (1) (a) and (b) of Hindu Succession Act, 1956. This amendment gave them equal rights as the sons.

Related article:

What are the powers of Karta in HUF?

How to open HUF account in banks?

(3) Comments

  1. Sarju Sharan Gupta

    Very simple n effective advice.It will help to solve a lot of problem being faced by the coparceners of an HUF having bank account and the karta has died. Thank a lot

  2. Sarvesh Kore

    sir,what will happen if after death of male karta there is no male coparcener in HUF? Will widow get Status of Karta and will she be authorised person. and in this HUF only girls are there and all are married so will they be treated as coparceners and will they get share from bank balance of deceased karta(their father)?

    1. Surendra NaikSurendra Naik - Post author

      A Hindu widow is a member of her husband's HUF, she is not a coparcener. As only a coparcener can become a karta, she cannot be the karta of her husband's joint property.However,Courts in India have given diverse views regarding this: C.P. Berai v. Laxmi Narayan[6] - It was held that held that a widow could be a karta in the absence of adult male members in the family.

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