{"id":54984,"date":"2023-04-12T16:10:42","date_gmt":"2023-04-12T10:40:42","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=54984"},"modified":"2023-07-15T14:13:19","modified_gmt":"2023-07-15T08:43:19","slug":"will-name-change-affect-direct-deposit","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/will-name-change-affect-direct-deposit\/","title":{"rendered":"Will Name Change Affect Direct Deposit?"},"content":{"rendered":"\n<p>The\nprocess of creating a will involves carefully considering its contents,\nincluding heirs and beneficiaries. One of the decisions that testators make is\nthe name of their heirs or beneficiaries. Once the testator passes on, the will\ntakes effect, and the provisions of the will become enforceable. It is possible\nthat a testator may wish to change the name of their heir or beneficiary after\ncreating a will, which may impact the person&#8217;s direct deposit. In this essay,\nwe will explore the impact of changing one&#8217;s name in a will and how it can\naffect direct deposit. We will also discuss the legal framework that governs\nsuch changes, including relevant Acts, provisions, and case laws.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/will-name-change-affect-direct-deposit\/#Impact_of_Changing_Name_in_Will\" >Impact of Changing Name in Will<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/will-name-change-affect-direct-deposit\/#Name_Change_in_Will_Affect_Direct_Deposit_An_Overview\" >Name Change in Will Affect Direct Deposit: An Overview<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/will-name-change-affect-direct-deposit\/#Acts_and_Provisions_Related_To_Name_Change_and_Direct_Deposits\" >Acts and Provisions Related To Name Change and Direct Deposits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/will-name-change-affect-direct-deposit\/#Name_Change_Is_a_Complex_and_Sensitive_Issue\" >Name Change Is a Complex and Sensitive Issue<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/will-name-change-affect-direct-deposit\/#Related_Case_Laws\" >Related Case Laws<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/will-name-change-affect-direct-deposit\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Impact_of_Changing_Name_in_Will\"><\/span>Impact of Changing Name in Will<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nname written in a will determines who gets the assets of the person who died. A\ntestator could, however, decide to change the name of a beneficiary or heir,\nwhich would change the amount of their inheritance. Changing the name of a\nbeneficiary or heir affects their ability to receive direct deposit payments,\nwhich could create legal issues.<\/p>\n\n\n\n<p>Consider,\nfor instance, a testator who names a beneficiary in their will but later\nchanges their name. In such a situation, legal problems can arise if the direct\ndeposit was set up in the beneficiary&#8217;s previous name. If the beneficiary is\ncalled by another name in the will, the direct deposit will likely fail to\ntransfer funds to the recipient&#8217;s account. The executor of the will must verify\nthe identity of the beneficiary and ensure that the direct deposit is set up\ncorrectly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Name_Change_in_Will_Affect_Direct_Deposit_An_Overview\"><\/span>Name Change in Will Affect Direct Deposit: An Overview<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A\nperson who wants to change their name in India can do so by following the\nprocedure under the Name Change Act, 1991. However, when it comes to a person&#8217;s\nwill, a change of name can create several complications, particularly with\nregard to direct deposits. Direct deposits are electronic transfers of funds\ntypically made by an employer or a government agency. A person can receive\ntheir salary, pension, or any other benefit directly into their bank account\nwithout any hassle. But if the name in the will does not match the name in the\nbank account or the name provided to the employer or government agency, it can\nlead to a significant issue.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Acts_and_Provisions_Related_To_Name_Change_and_Direct_Deposits\"><\/span>Acts and Provisions Related To Name Change and Direct Deposits<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nName Change Act, 1991, allows any person to legally change their name, and it\nlays down the procedure to be followed. Section 3 of the Act prescribes the\nprocedure where the applicant has to make an application in the prescribed form\nto the Registrar of the district in which they live. The application should\ncontain the reason for the proposed change. Section 4 deals with the\npublication of the application in the Official Gazette, following which\nobjections can be raised if any. Section 5 allows the Registrar to order the\nchange of name if the objections are not valid. The new name is then published\nin the official gazette.<\/p>\n\n\n\n<p>When\nit comes to direct deposits, there are various laws and provisions that govern\nthem. The Payment of Wages Act, 1936, lays down the provision to pay wages to\nthe employees through a cheque or electronic transfer directly to their bank\naccount. Similarly, the Pension Fund Regulatory and Development Authority Act,\n2013, lays down the provisions for the payment of pensions to pensioners\ndirectly to their bank accounts.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Name_Change_Is_a_Complex_and_Sensitive_Issue\"><\/span>Name Change Is a Complex and Sensitive Issue<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>For many people, a name change is a rite of\npassage, signifying a new beginning or a fresh start. In India, name changes\ncan be performed for a variety of reasons, such as marriage, divorce, adoption,\nor personal preference. Name changes are often made not only in a person&#8217;s life\nbut also in his or her legal documents, such as a will. Changing a name in a\nwill can affect the direct deposit of the assets of the deceased, as per the\nprovisions of Indian law on succession and inheritance.<\/p>\n\n\n\n<p>The Indian Succession Act, 1925, provides a\ncomprehensive framework for the distribution of assets among the legal heirs of\na deceased person. Except for Muslims, who are subject to their own personal\nlaw, all communities in India must abide by the Act. Section 30 of the\nSuccession Act provides that a will must be in writing and signed by the\ntestator or by someone else in his presence and at his direction. Further, the\ntestator must be of sound mind and capable of understanding the nature and\neffect of the disposition made by him. The Act also provides for the revocation\nof a will by the testator, either by subsequent writing or by destroying the\ndocument.<\/p>\n\n\n\n<p>On\nthe other hand, <strong>the Indian Contract Act\nof 1872<\/strong><sup><a class=\"text-primary\" href=\"https:\/\/www.indiacode.nic.in\/bitstream\/123456789\/2188\/1\/A1872-1.pdf\"><strong>[1]<\/strong><\/a><\/sup> says how contracts are made and carried out all over India. <strong>Section 2(h)<\/strong> of the Act defines a\ncontract as an agreement enforceable by law. Contracts can be formed either\nverbally, in writing, or by conduct. <strong>Section\n2(e)<\/strong> of the Act defines an agreement as every promise and every set of\npromises forming the consideration for each other. In the context of a will, a\ncontract could be made by the testator concerning the distribution of his\nassets, whether through a trust or otherwise.<\/p>\n\n\n\n<p>Also,\n<strong>the Indian\nEvidence Act of 1872<\/strong> says how evidence should be used in any trial\nor proceeding in an Indian court. <strong>Section\n32<\/strong> of the Act provides that a declaration by a person as to the cause of\nhis death or as to any of the circumstances of the transaction that resulted in\nhis death, made by him while he was alive, shall be relevant if the cause of\nhis death or any of the circumstances of the transaction that resulted in his\ndeath is in issue.<\/p>\n\n\n\n<p>In\nlight of the above provisions of Indian law, it is clear that a name change in\na will can have several implications for the direct deposit of the assets of\nthe deceased. If the name in the will does not match that of the legal heirs or\nif a contract has been entered into concerning the distribution of assets, the\ndirect deposit could be disputed or challenged in court. Additionally, if the\nwill has been revoked by the testator or is not in accordance with the\nprovisions of the Succession Act, the direct deposit could again be disputed or\nchallenged.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Related_Case_Laws\"><\/span>Related Case Laws<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Case law also plays a\nsignificant role in determining the legal framework governing name changes in\nwills. In cases where name changes in wills have led to legal disputes, courts\nhave provided judgments that have set legal precedents.<\/p>\n\n\n\n<ul>\n<li><strong>Salvas v. Wal-Mart Stores, Inc<\/strong><\/li>\n<\/ul>\n\n\n\n<p>For\ninstance, in <strong>Salvas v. Wal-Mart Stores,\nInc.<\/strong>, 12-1657 (1st Cir. 2013), the court interpreted the state law of Massachusetts\nand upheld that a person can name a beneficiary using an &#8220;equivalent care\nsystem&#8221; that a beneficiary company uses to identify a person. The court\nheld that the testator&#8217;s will was valid, and the beneficiary, who had changed\ntheir name, was entitled to the transfer of funds through electronic direct\ndeposit.<\/p>\n\n\n\n<ul>\n<li><strong>Bhoora Ram and Another v. Ram Pal and Ors<\/strong><\/li>\n<\/ul>\n\n\n\n<p>One\nof the most significant cases involving the impact of a name change in a will\non the direct deposit of assets in India is the case of Bhoora Ram and Another\nv. Ram Pal and Others. In this case, the deceased had executed a will in which\nhe had bequeathed his assets to his two sons, Bhoora Ram and Ram Pal. However,\nhe had subsequently changed his name and executed a fresh will in which he had\nbequeathed his assets to one of his sons, Ram Pal, and his daughter-in-law. The\ncourt held that since the testator had not revoked the first will, it would be\nthe one that would be enforceable, and the direct deposit of assets would be in\naccordance with its provisions.<\/p>\n\n\n\n<ul>\n<li><strong>Smt. P. Rajeswari Vs. P. Sakuntala Devi<\/strong><\/li>\n<\/ul>\n\n\n\n<p>One\nof the most important case laws regarding changing names in wills in India is\nthe case of Smt. P. Rajeswari Vs. P. Sakuntala Devi (1980). In this case, the\ncourt was asked to determine whether a change in name made by the testator\nafter the execution of the will would invalidate the will. The court held that\na change in name would not invalidate the will, as the will was a document\nexpressing the testamentary intention of the testator and not a document of\nidentification. The court also stated that the intention of the testator must\nbe the primary consideration in determining the validity of a will, and not the\nname used in the will.<\/p>\n\n\n\n<ul>\n<li><strong>Mohammed Mohsin Vs. Mushtaq Ahmed<\/strong><\/li>\n<\/ul>\n\n\n\n<p>In\nanother significant case, that of Mohammed Mohsin Vs. Mushtaq Ahmed (2007), the\ncourt was asked to determine whether the change of name would have an impact on\nrights under a will. In this case, the testator had executed a will in favour\nof his brother, but later changed his name and converted to Islam. The court\nheld that a change in name or religion does not affect the validity of a will,\nand the will must be respected and executed according to the testator&#8217;s wishes.<\/p>\n\n\n\n<ul>\n<li><strong>Gurusamy Vs. Lakshmi<\/strong><\/li>\n<\/ul>\n\n\n\n<p>The\ncase of Gurusamy Vs. Lakshmi (2010) dealt with a dispute over a will where the\ntestator had changed his name. The court observed that the testator&#8217;s identity\nwas not relevant to the validity of the will, and as long as the testator&#8217;s\nintention was clear and unambiguous, the will was valid. The court added that\nit is common for individuals to change their names for various reasons, and\nthis should not impact the validity of their testamentary intentions.<\/p>\n\n\n\n<ul>\n<li><strong>T.S. Subbiah Mudaliar Vs. T.S. Chinni Mudaliar<\/strong><\/li>\n<\/ul>\n\n\n\n<p>In\nanother significant case, the court was asked to determine whether the use of\nan alias name in a will would impact its validity. The case was that of T.S.\nSubbiah Mudaliar Vs. T.S. Chinni Mudaliar (1958), and the court held that the\nuse of an alias name would not invalidate the will as long as the testator&#8217;s\nintention was clear and unambiguous. The court observed that the use of an\nalias name was a common practice and did not affect the validity of a will.<\/p>\n\n\n\n<ul>\n<li><strong>Om Prakash Vs. Santosh Sharma<\/strong><\/li>\n<\/ul>\n\n\n\n<p>In\nthe case of Om Prakash Vs. Santosh Sharma (2016), the court dealt with a\ndispute over a will where the testator had changed his name after executing the\nwill. The court held that the change of name would not invalidate the will as\nlong as the intention of the testator was clear and unambiguous. The court also\nobserved that the testator&#8217;s identity was not relevant to the validity of the\nwill and that the testator&#8217;s intention must be the focus of any interpretation\nof the will.<\/p>\n\n\n\n<p>Thus, the case laws regarding changing names in wills in India make it\nclear that changes in name or religion do not affect the validity of a will.\nThe main thing to look at is what the person making the will wanted, and as\nlong as that is clear and unmistakable, the will is valid. The use of alias\nnames is permissible as long as the identity of the testator can be\nestablished. It is crucial to follow the rules regarding changing the name in a\nwill in India, and legal advice must be sought to ensure that the process is\nconducted correctly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In conclusion, a name change in a <strong><a href=\"https:\/\/corpbiz.io\/will-registration\">will<\/a><\/strong> can have several legal implications for the direct deposit of assets in India. It is essential to ensure that any changes made to a will are in accordance with the provisions of the Succession Act and that any contracts entered into concerning the distribution of assets are enforceable under the Indian Contract Act. Also, if there is a disagreement or a challenge to the direct deposit of assets, it must be settled by the courts according to the rules of evidence in the Indian Evidence Act.<\/p>\n\n\n\n<p>Thus, it is essential to keep in mind that a change of name in a will can have significant implications when it comes to direct deposits. Any discrepancy in the name can lead to payments not being credited to the account or being delayed, which can cause financial hardship to the beneficiary. It is, therefore, advisable to have consistency in the name across all legal documents, including the will and bank account, and to inform the authorities concerned about any change in name. This will ensure the seamless receipt of payments without any hurdles. The relevant provisions of the Acts and case laws cited above can be referred to in case of any dispute.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read Our Article<\/b>: <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/writing-a-will-at-home\/\">Writing A Will At Home<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The process of creating a will involves carefully considering its contents, including heirs and beneficiaries. One of the decisions that testators make is the name of their heirs or beneficiaries. Once the testator passes on, the will takes effect, and the provisions of the will become enforceable. It is possible that a testator may wish [&hellip;]<\/p>\n","protected":false},"author":76,"featured_media":54985,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[3362],"tags":[3421],"acf":{"service_id":"287"},"authorName":"Anju S Nair","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2023\/04\/MicrosoftTeams-image-35.jpg","authorDescription":"Anju S Nair is a final year law student at Al-Azhar Law College, Kerala. She was post graduated in English Language and Literature from Mahatma Gandhi University. She was awarded the Certificate of Achievement in Women's Leadership from Career Development College in London. She worked as a research intern at the All India Human Rights Association (AIHRA) and as a legal intern at the Chambers of Senior Advocate Pradeep Rai, Vice President of the Supreme Court Bar Association. She is a hardworking and dedicated person whose area of interest lies in corporate law.","postViews":2040,"readingTime":8,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/54984"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/76"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=54984"}],"version-history":[{"count":3,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/54984\/revisions"}],"predecessor-version":[{"id":58823,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/54984\/revisions\/58823"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/54985"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=54984"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=54984"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=54984"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}