JayDG
20

Dear Sirs/Madams,

Could anyone let me know the legal status of Adopted Children vis-a-vis Step Children vis-a-vis Second Wife of deceased Employees with regards to his financial benefits from the company? Interpretation by Courts would be helpful in this regard. Are there any laws clarifying such an issue?

Thanks & Regards

From India, Purulia
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Adopted children enjoy the same rights as biological children (the adoption should have been registered).

Regarding the rights of a second wife, please consult a lawyer as it varies from case to case, and many questions would arise based on the circumstances of the second marriage. For example:
1. Was the first wife alive at the time of the second marriage?
2. Did the first marriage end in divorce?
3. Were any of the marriages registered?

The best option would be to discuss the case with your legal team and act according to their advice. Change the title of your question to 'Settlement of financial benefits of a deceased employee' for more responses on this forum.

From India, Chennai
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Hello JayDG,

Sivaramakrishnan has a point. I suggest giving the actual situation with details. This will enable the members to provide clear and focused suggestions. Please remember that no two situations are identical, although they may be similar.

Regards,
TS

From India, Hyderabad
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JayDG
20

You are right, adopted children enjoy the same rights and status as biological first children. There is a concept of "full blood" and "half blood" in the Indian Legal System as far as inheritance is concerned. I believe the Inheritance Law (which will differ based on religion) will take precedence in determining who receives what. Perhaps seniors here can shed more light on the subject.

Thanks and Regards

From India, Purulia
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Dear,

In almost all companies and establishments, there is a system of declaring a nominee for all dues in the event of an employee's death. Regarding the rights of stepchildren, adopted children, or second wives, it should be handled according to the nomination made by the employee while they were alive. If there is any dispute, the money should be deposited with the Controlling Authority/Authority under the Act, who will decide the entitlement based on available records and other facts brought forward by the claimants.

AK Jain

From India, New+Delhi
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JayDG
20

Dear Arunjain,

Companies usually follow the nomination. However, in many cases, this nomination is challenged (either before or during an appeal) by other relatives. In such cases, distribution is held up until it is resolved between the relatives of the deceased or after the court gives a verdict.

Knowing the law earlier can help relatives in cases of urgent financial needs. The law has its place, but at the same time, such employees may be advised during the nomination.

Thanks & Regards

From India, Purulia
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Dear Jay,

As far as my knowledge goes, nominations made by an employee in favor of wife, son(s), unmarried daughter(s), father, and mother are unchallengeable. If made in favor of others not mentioned above (direct dependent family members), it may be challenged, but I am not sure about it. Regarding the treatment in case of the absence of a "nomination," there is a provision to accept the "wife" as the legal heir. If this is contested by dependent family members, then a "Succession Certificate" is required to decide the matter, or it is referred to the Controlling Authority under the relevant Act along with a DD/Cheque. The Controlling Authority will determine the percentage of entitlement and disburse the amount accordingly.

If there is more to add, please do so, and it will be appreciated.

AK Jain

From India, New+Delhi
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If I am right, the nominee has only the right to receive the amount and does not have the right to enjoy the full money. The job of the nominee is to ensure fair distribution of the compensation among all. For example, if the wife is the nominee, she can receive the compensation but must distribute the money to her children, her in-laws, and to herself. As Mr. Arun had pointed out, other beneficiaries can always file an application in court seeking their share too. In this case, the member had queried the rights of the 2nd wife as well. Here, the validity of the 2nd marriage would also come into the picture. A better option would be to discuss the case with the legal team before disbursement.
From India, Chennai
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