Claiming Bank Account of Deceased NRI in India from the USA

The Nominee on the Account Is Not the Owner

The most expensive misunderstanding in NRI estate settlement is assuming that the person nominated on an Indian bank account or demat investment is the legal owner of those assets. Under Indian law, they are not.

A nominee under the Indian Succession Act of 1925 is a custodian — a legal trustee. The nominee receives the assets from the bank, but they are legally obligated to hold and distribute them to the rightful legal heirs as determined by personal law or a valid will. Banks release funds to the nominee for administrative convenience. Ownership is a separate legal question.

This distinction matters because families in the US often assume that if the deceased registered a nominee, the money is handled. It is not. If other legal heirs exist and the nominee does not distribute, the heirs can (and do) take the matter to court.

What You Actually Need to Claim the Funds

The documents required depend on whether a nominee is registered, whether a will exists, and the total value of the deposits.

If a Nominee Is Registered

The bank will release funds to the registered nominee upon submission of:

• Apostilled US death certificate (long-form, showing cause of death)
• The nominee's KYC documents (Aadhaar, PAN, passport)
• A completed bank claim form (each bank has its own)
• The original passbook or fixed deposit receipt

Under RBI guidance, a valid nomination should allow the bank to release the funds to the nominee without requiring a succession certificate or probate, regardless of the claim amount. The nominee receives the funds as a trustee for the legal heirs, not as the ultimate owner.

If No Nominee Is Registered

For claims below INR 15 lakh, banks may use a simplified procedure requiring an indemnity bond, a legal heir certificate from a revenue official such as a Tehsildar, and letters of disclaimer from other heirs. For claims above INR 15 lakh, banks strictly require a Succession Certificate or Letters of Administration from a competent Indian District Court.

Succession Certificate vs Legal Heir Certificate

These are two different documents, and using the wrong one wastes months.

Legal Heir Certificate: Issued by a local administrative authority (Tehsildar or District Magistrate) within 15–30 days. It identifies the living relatives and their relationship to the deceased. However, it does not grant judicial authority to transfer or liquidate financial assets. Banks, mutual funds, and share registrars will not release funds based on a legal heir certificate alone for amounts above their internal threshold.

Succession Certificate: Issued by a District Court under the Indian Succession Act, 1925. This is the document that banks, mutual fund registrars, and depository participants may require when the claim cannot be settled under a valid nomination or simplified procedure. Getting one requires filing a formal court petition, publishing public notices in local newspapers, waiting out a statutory objection period (30–45 days), and paying court fees calculated as a percentage of the asset value. The process takes 5–10 months if no one contests.

Filing for Succession Certificate from the USA

You do not need to be physically present in India for the entire process, but you need an authorized representative there. The typical approach:

1. Execute a Special Power of Attorney in the US, notarized and apostilled, authorizing a trusted family member or attorney in India to file the court petition on your behalf
2. File the petition in the competent District Court in India
3. Publish public notices in a local newspaper — the court mandates this to invite objections from any other potential heirs
4. Wait out the objection period (30–45 days)
5. Receive the succession certificate listing the specific assets and the authorized recipient

Court fees vary by state. Some states charge a flat fee; others charge a percentage of the claimed asset value.

Personal Law Determines Who Inherits

If the deceased died without a will, the governing rule for assets located in India depends on the deceased's religion, the type of asset, and domicile. Do not assume that US law controls every Indian asset.

Hindu Succession Act, 1956 (applies to Hindus, Buddhists, Sikhs, and Jains): Intestate property is divided equally among Class I heirs — the spouse, children, and mother. Daughters have equal coparcenary rights by birth since the 2005 amendment.

Muslim Shariat Personal Law: Limits testamentary freedom. A Muslim testator can only bequeath up to one-third of their estate via a will; the remaining two-thirds must be distributed according to fixed Sharia shares. A US-drafted will that assumes full testamentary freedom will fail over assets in India.

Indian Succession Act, 1925 (applies to Christians, Parsis, Jews): Succession to immovable property in India follows Indian law. Movable assets (bank accounts, shares) follow the law of the deceased's country of domicile at death.

The Estate PAN Requirement

To manage any financial activity on behalf of the deceased — collecting dividends, selling shares, receiving interest — the executor cannot use the deceased's personal PAN card. The Income Tax Act treats the deceased's estate as a separate taxable entity.

The executor must apply for a new PAN card for "The Estate of Late [Name]" using the updated forms (Forms 93–96, which replaced Forms 49A/49AA). The application requires 4.5cm × 3.5cm color photographs with a white background — standard US 2×2 inch passport photos are rejected. Address proof documents must be no older than three months.

For the complete bank transmission workflow, succession certificate templates, and FEMA remittance procedures, see the Indian Dies in the US — Family Guide.