Thursday, 13 October 2016

Limited role for wife in HUF

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Several landmark judgments have improved the woman's position in a Hindu Undivided Family (HUF), such as one that ruled the eldest daughter, even if married, can replace her father as karta in an HUF after his death. However, a karta's wife or daughter-in-law cannot replace him.
According to HUF laws, when a karta - or manager - of an HUF passes away, his eldest son automatically replaces him. But, cases where a karta only has daughter/s, or his children are minors, have been subjects of dispute.
WOMEN’S STATUS IN AN HUF
  • In 2005, the Hindu Succession Act gave equal rights to daughters in an HUF
  • Daughters can become karta as they are coparceners
  • Wives and daughters-in-law cannot becomekarta as they are not coparceners
  • The wife will get husband’s share in an estate after his death
  • The wife can only be the guardian of an HUF after husband’s death until the eldest child becomes a major

The position of a karta is a powerful one, for this person controls, and is also the custodian of, the finances of an HUF. "The karta borrows money on behalf of the family. He can spend money for the family without being accountable to the members, as all his actions are assumed to be carried out for the benefit of the family. The decisions of the karta are binding on other members," says Hitesh Jain, senior partner at ALMT Legal. But, the karta cannot divide the estate disproportionately, or use the assets for the benefit of one member, without the consent of others. In an HUF, an individual does not have a claim on any assets unless they are partitioned. The assets belong to everyone and everyone benefits from them.

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