What is the procedure to replace Karta in case of Karta’s death in a HUF account?

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A: Procedure to be adopted in the event of the death of karta is as follows:

a) HUF, being a Hindu Undivided Family, is managed by the Karta.

b) HUF does not come to an end in the event of the death of Karta.

c) In the event of the death of Karta of HUF, the name of the deceased Karta in the Beneficial Owner (BO) account shall be replaced by the new karta appointed by the members of the HUF, who, in such a case, shall be the senior-most member of the family.

d) The new Karta shall submit the new list of members, signed by all the members, along with the declaration in the list stating that “we state that the list of surviving members is complete and exhaustive and does not leave out any members of the HUF. Further, we confirm that the list provided is correct in all respects and also the information provided herein is complete and correct in all respects. All the members of the HUF are fully perceptive of the request made to the participant and also there is no pending dispute or claim for the same among the members of HUF with reference to this.

e) Original or a copy of the death certificate of the deceased Karta, duly notarized/attested by Gazetted Officer, and a no objection from the surviving members of the HUF for him/her to act as Karta of the HUF.

f) The existing account need not be closed, and the same account may continue.

g) The death of the Karta shall not mean that the securities lying in the BO account of the HUF are to be divided among the coparceners. Only in case of partition of HUF such an division among the co-parceners can take place.

The new Karta will submit to the DP the account modification form and record change in the signature of the new Karta to operate the account. DP will make necessary modifications in the name of Karta after verifying all the documents and record change in the signature of the new Karta to operate the account.

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