Home > Money > Question
Need Expert Advice?Our Gurus Can Help
Ramalingam

Ramalingam Kalirajan  |7363 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 25, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
Rajneet Question by Rajneet on Jun 25, 2024Hindi
Money

Hello, I would like to discuss a matter regarding my father-in-law's fixed deposit (FD) of 50 lakhs. I am the nominee as the daughter-in-law, even though he has three sons. He chose me as the nominee because I take care of him. My husband is well aware of this situation. My father-in-law has created a will but has not mentioned in the FD. He has already gifted his elder son a floor worth 1.5 crores. We are the youngest in the family. Verbal communication suggests that the FD belongs to me. My concern is whether my brother-in-law can claim the FD after my father-in-law's passing.

Ans: I understand the complexity and sensitivity of your situation. It's good that you are thinking ahead and seeking clarity. Let's discuss the nuances of this issue from a legal and financial perspective, ensuring you have a clear understanding of what may happen and how you can prepare.

Understanding Nominee Rights in Fixed Deposits
Firstly, let's understand the role of a nominee in a fixed deposit. A nominee is the person appointed to receive the funds in the event of the account holder's demise. However, being a nominee doesn't mean you own the funds outright. Legally, you act as a trustee or caretaker of the funds for the legal heirs.

Legal Rights and Heirship
The legal heirs have a right to claim the assets of the deceased as per the inheritance laws applicable. In the absence of a clear mention in the will about the fixed deposit, your father-in-law's estate, including the FD, would typically be distributed according to the laws of intestate succession, which may vary depending on the personal law applicable to your family.

The Role of the Will
Your father-in-law's will plays a crucial role here. If the will specifies the distribution of other assets but does not mention the FD, this can lead to ambiguity. Verbal assurances, while meaningful within the family, may not hold legal weight in court. It's essential to have clear, written instructions in the will regarding the FD to avoid potential disputes.

Potential Claims from Legal Heirs
Since your father-in-law has three sons, including your husband, the other sons (your brothers-in-law) may have a legal claim to the FD, especially if it is not explicitly mentioned in the will. The fact that your father-in-law has already gifted a significant asset to the elder son may play a role in family discussions but may not necessarily influence legal proceedings unless stated in the will.

Steps to Ensure Your Rights
Here are some steps you can take to safeguard your interests:

1. Discuss with Your Father-in-Law
Have a candid conversation with your father-in-law about explicitly mentioning the FD in the will. This will help clarify his intentions and reduce the risk of disputes.

2. Update the Will
Encourage your father-in-law to update his will to include specific instructions regarding the FD. This could state that the FD should be bequeathed to you, the nominee, ensuring his verbal wishes are legally documented.

3. Legal Consultation
Consult with a legal expert specializing in inheritance and estate planning. They can provide tailored advice and ensure the will and other documents are correctly drafted and legally binding.

4. Open Communication
Maintain open communication with your husband and, if possible, with the other family members. Transparency can help prevent misunderstandings and conflicts after your father-in-law's passing.

Understanding the Impact of the Gift to the Elder Son
The fact that your father-in-law has already gifted a floor worth Rs. 1.5 crores to his elder son may be significant. Here’s why:

Documentation: Ensure that the gift is well-documented and legally transferred. This can support your claim that the FD was intended for you, balancing the distribution of assets.
Family Agreement: Discuss this with the family, emphasizing that your father-in-law has tried to distribute his assets fairly, considering the significant gift already given to the elder son.
Legal Perspective on Verbal Communications
Verbal communications and intentions, while morally significant, often do not hold up in legal proceedings unless supported by written evidence. Therefore, it’s crucial to have these intentions clearly documented in the will.

Importance of Being the Nominee
As the nominee, you are initially responsible for receiving the funds. However, this doesn’t give you ownership rights over the FD. It is still crucial to establish your father-in-law's intention legally to ensure you retain control over the funds.

Financial Planning and Management
Once the legalities are sorted, managing the FD becomes important. Here’s how you can approach it:

1. Financial Goals
Align the FD with your financial goals. Whether it's for emergencies, education, or future investments, plan accordingly.

2. Reinvestment Options
Consider reinvestment options that offer good returns while ensuring safety and liquidity. Fixed deposits can be renewed, or you might explore other conservative investment options.

3. Tax Implications
Be aware of the tax implications of inheriting the FD. Consult with a financial planner or tax advisor to optimize your tax liabilities.

Final Insights
It's commendable that you are taking care of your father-in-law and thinking ahead about financial matters. Ensuring that his intentions are legally documented will help avoid potential disputes and provide clarity. Here's a summary of steps you should take:

Discuss with Your Father-in-Law: Have a conversation about updating the will to include the FD.
Update the Will: Ensure the FD is explicitly mentioned, reflecting your father-in-law's intentions.
Consult a Legal Expert: Get professional advice to ensure the will is legally sound.
Maintain Open Communication: Keep transparent communication with family members to avoid conflicts.
Plan Financially: Align the FD with your financial goals and consider tax implications.
Taking these steps will help secure your interests and ensure your father-in-law's wishes are honored.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
Money

You may like to see similar questions and answers below

T S Khurana

T S Khurana   |264 Answers  |Ask -

Tax Expert - Answered on Aug 26, 2024

Asked by Anonymous - Aug 06, 2024Hindi
Listen
Money
My father died in FY 24-25 a 3 months back. A home in which I am living is in the name of my late mother and my late father and my wife. My queries are : 1. Now, only my wife is alive so, Is there any need to transfer the property in my wife's name ? 2. There is income from the rent of 2 separate floors, how this rent now to be shown and in whose ITR. Me and my wife also file ITR 2 currently. 3. My Father was getting the pension and filling the ITR for the same. Do I need to file his ITR as a legal heir or as a representative. 4. What need to be done to get his legal heir status. I am having 2 married sisters also. If you can reply serial wise I shall be obliged. Kindly state any other advise wherever required. Regards.....
Ans: I offer my opinion on your above questions, point wise as under :
01. First of all refer to the "WILL" of your Father & Mother. Their share should be transferred, in the name of the beneficiary of the WILL, may be you, your wife of anybody else.
02. Till the date of death, your father & mother are entitled to 1/3 RENTAL INCOME EACH.
03. You are supposed to file ITR of your Father & Mother, after their death, till the date they were alive, along with their all other Income, whether from pension or any other source. ITR should be filled by you as their legal heir/representative asessee.
04. Portion of rental income of your wife, shall be continued to be shown in her ITR.
05 When property share of your father & mother is transferred in the name of beneficiaries, they will be responsible to show this income in their ITRs.
06. If there is "REGISTERED WILL" property can be transferred in the name of beneficiary. If there is no "WILL" then the property shall be divided among all legal heirs equally. However, some of the stake holders may opt for having no share in the property.
Most welcome for any further clarifications. Thanks.

..Read more

Latest Questions
Dr Nagarajan Jsk

Dr Nagarajan Jsk   |188 Answers  |Ask -

NEET, Medical, Pharmacy Careers - Answered on Dec 27, 2024

Listen
Career
Hello! Sir This is Sravani.I am a M.Pharmacy postgraduate and has a work experience of 6 years in Quality control department in pharma industry.At present i am working in the same department. But i want to go for work from home job.so that i can spend time with my kids. Both my kids are in kindergarten. It's becoming tough for me to manage both job & kids as my working hours are too long. Please do suggest me any kind of work from home job which suits my profile. Regards Sravani
Ans: Hi Sravanthi,

It's great to hear that you have six years of experience in Quality Control (QC). As you know, QC roles are generally onsite, unlike IT roles that can often be done remotely. Given your expertise in QC, you have the option to transition to Quality Assurance (QA), Regulatory Affairs (RA), or the Validation team, but we need to assess the feasibility of such a shift. While it is uncommon, it is possible to find roles in RA, such as preparing and submitting documents, pharmacovigilance, or medical scribing. However, since these are not your areas of expertise, if you choose to pursue them, you may be considered a fresher in those fields.

You also mentioned that need to work long hours. Even with work from home (WFH), you will likely face similar challenges; once you log in, you cannot skip the tasks assigned to you. Being at home may hinder your ability to care for your children, creating additional difficulties.

If you are financially stable, you might consider quitting your current job to find other opportunities or to take care of your family. If not, you will need to weigh your options carefully.

My recommendation is to prefer onsite work rather than WFH.

On a lighter note, there are many advantages to onsite work that can actually save you money—such as reduced electricity bills, food expenses, and travel costs. Compared to WFH, where you may incur higher electricity costs due to using AC and your computer, along with food expenses for snacks and meals.

Logically speaking, as a working woman, if your maid were asking for a WFH arrangement, how would you respond?

As an additional suggestion, you might consider applying for government jobs as a Junior or Senior Analyst in your state’s Drug Testing Lab within the Drugs Control Department.

Ultimately, I recommend that you continue in your current field and potentially explore opportunities in a different company or industry that offers a higher salary. Alternatively, you could also consider transitioning to QA, but ideally in an onsite position.

All the best.

...Read more

Dr Nagarajan Jsk

Dr Nagarajan Jsk   |188 Answers  |Ask -

NEET, Medical, Pharmacy Careers - Answered on Dec 27, 2024

Listen
Dr Shakeeb Ahmed

Dr Shakeeb Ahmed Khan  |132 Answers  |Ask -

Physiotherapist - Answered on Dec 27, 2024

Listen
Health
Knee Replacement- My doctor has advised me total knee replacement in right knee after examining X ray, as I am suffering from pain in right knee for last 12 months. Whether I have any options to avoid it or better to do to live pain free life after operation. I am worried about side effects, if any. Thanks Ganesh Surana
Ans: Dear Mr. Surana,
Thank you for your query. If your doctor has recommended a total knee replacement, it is likely based on the severity of your condition as indicated by the X-ray and your ongoing pain. However, you may still explore conservative options before deciding on surgery. I suggest consulting a physiotherapist for a comprehensive rehabilitation program. Physiotherapy can help strengthen the muscles around the knee, improve joint stability, and potentially reduce pain.
That said, your age and weight also play an important role in determining the best course of action. If you are overweight, weight management can significantly reduce stress on the knee joint and alleviate symptoms. Lifestyle changes, such as a tailored exercise regimen and a healthy diet, can also be beneficial.

If conservative measures don’t provide sufficient relief, total knee replacement may be the best option for living a pain-free life. It’s natural to be concerned about side effects, but modern surgical techniques and post-operative care have made the procedure highly effective and safe. Discuss all your concerns with your doctor and physiotherapist to make an informed decision.
Wishing you the best,

...Read more

Dr Shakeeb Ahmed

Dr Shakeeb Ahmed Khan  |132 Answers  |Ask -

Physiotherapist - Answered on Dec 27, 2024

Listen
Health
I AM HAVING UMBLICAL HERNEA PROBLEM.DOCOTR SUGGESTED ME TO BRING DOWN MY WEIGHT AND REDUCE FATTY BELLY BEFORE SURGERY.HE SUGGESTED ME TO WAIT FOR SURGERY TILL MY WEIGHT COMES DOWN FROM 92 KGS TO A REASONABLE LEVEL.PLEASE SUGGST ME WHAT EXERCISES i CAN DO TO ELIMINATE THE FAR BELLY WITHOUT DETERIORATING MY UMBLICAL HERNEA PROBLEM.PLEASE SUGGEST ME EXERCISES TO BRING DOWN MY BELLY. THANKS AND REGARDS. NVRSRINIVAS
Ans: Dear Mr. Srinivas,

Thank you for your query. Weight reduction is a gradual process that requires consistent effort and a balanced approach. It is advisable to consult a physiotherapist and a nutritionist to guide you through this journey. Focus on a high-protein, low-carbohydrate diet to support weight loss while maintaining muscle mass. Ensure your meals are nutritious and create a calorie deficit.

For exercise, start with low-impact aerobic activities such as walking, cycling, or swimming, as these can burn calories without putting pressure on your hernia. Incorporate gentle core-strengthening exercises like pelvic tilts and side planks to build core stability without straining the affected area. If suitable, include short bursts of high-intensity workouts or moderate-intensity, long-duration activities such as brisk walking or light jogging to enhance endurance and fat loss. Additionally, light resistance training can help maintain muscle mass, but avoid exercises that strain your abdominal muscles or involve heavy lifting.

Always consult a physiotherapist before starting any exercise program to ensure it is safe and appropriate for your condition. Wishing you success in your weight loss journey and a smooth recovery.

...Read more

Ramalingam

Ramalingam Kalirajan  |7363 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 27, 2024

Asked by Anonymous - Oct 22, 2024Hindi
Listen
Money
I have lost money around 8 lakhs in gambling now i want to restart my life fresh i need to settle my debts and loan with bank and NBFCs is it possible to settle money at 70 percent waived off
Ans: Restarting your life after financial setbacks is possible with a disciplined approach. Settling your debts with banks and NBFCs requires a strategic plan, negotiation, and commitment. Here's a 360-degree approach to help you resolve your situation:

Assess Your Current Financial Position
List All Debts: Create a detailed list of all outstanding loans and debts, including principal, interest, and penalties.

Identify Income Sources: Calculate your monthly income and any other sources of funds.

Evaluate Essential Expenses: Identify non-negotiable expenses such as rent, food, utilities, and transport.

Determine Negotiable Debts: Focus on debts with higher interest rates or legal implications.

Negotiating with Lenders
Possibility of Settling at 70% Waiver
Banks and NBFCs Are Open to Negotiation: They prefer recovering some amount rather than declaring a loan as non-performing.

Settlement Terms Vary: Each lender may have unique policies. Some might agree to 70% waiver, but others may not.

Present Your Case Transparently: Show proof of your financial hardship. Explain your inability to pay in full.

Request a One-Time Settlement (OTS): Offer to pay a lump sum of the waived-off amount to close the debt.

Steps to Negotiate Effectively
Reach Out to the Right Department: Contact the collections or recovery department of your lender.

Seek Professional Help: A certified financial planner or debt resolution expert can negotiate on your behalf.

Prepare a Settlement Plan: Propose a realistic amount you can pay. Mention the sources for this payment.

Ask for Written Confirmation: Ensure the lender provides a formal agreement on the waived-off amount.

Negotiate for Reduced Interest and Penalties: Request removal of penalties and reduction of interest rates.

Managing Your Financial Obligations
Repayment Strategy
Prioritise High-Interest Loans: Focus on clearing loans with higher interest rates first.

Consolidate Debts: Consider consolidating multiple loans into one with a lower interest rate.

Use Liquid Assets Wisely: If you have savings or assets, use them to reduce your debt burden.

Building a Fresh Financial Foundation
Avoid Gambling and High-Risk Activities
Adopt Healthy Habits: Seek professional help if gambling is an addiction. Join support groups like Gamblers Anonymous.

Focus on Financial Literacy: Learn to manage your money effectively through courses or books.

Create a Budget and Emergency Fund
Track Income and Expenses: Use apps or spreadsheets to monitor your financial activity.

Save for Emergencies: Set aside 3–6 months of expenses as a safety net.

Restart Investments Gradually
Start with SIPs: Begin investing small amounts in mutual funds. Avoid direct stock trading initially.

Build a Retirement Corpus: Plan for long-term financial security systematically.

Final Insights
Rebuilding your life after a financial setback takes effort but is achievable. Focus on negotiating your debts transparently and settling them systematically. Learn from past mistakes and adopt disciplined financial habits. Restart your journey with renewed confidence and a commitment to avoid risky behaviours. Seek professional guidance when needed to make informed decisions.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x