Can my mother be the karta of the HUF?

  • In your case, between you and your brother, if a new HUF is desired to be set up, the eldest son will be the karta of the HUF and not your mother

Staff Writer
Published23 Jan 2022, 03:10 PM IST
The father of the family, if alive, or in his absence, the senior-most male member of the family is entitled and presumed to manage the HUF and is known as the ‘karta’ of the HUF.
The father of the family, if alive, or in his absence, the senior-most male member of the family is entitled and presumed to manage the HUF and is known as the ‘karta’ of the HUF.(iStock)

My mother is a widow. My father expired 10 years ago. We are two (major) sons and a married daughter. We brothers have created a HUF with an initial capital of 50,000 received as a gift in marriage. Can my mother create a HUF being a karta and we two sons as coparcener?

-Pinrani

Hindu Undivided Family (HUF) comprises all persons forming part of one lineal family branch and having a common ancestor. It includes father, mother, sons, their wives (daughters-in-law) and daughters –these parties each have a different bundle of rights.

The father of the family, if alive, or in his absence, the senior-most male member of the family is entitled and presumed to manage the HUF and is known as the ‘karta’ of the HUF. 

In the absence of a senior male member of the family, the Delhi High Court has ruled that the eldest female coparcener can be karta of the HUF [Sujata Sharma vs. Manu Gupta (CS (OS) No 2011/2006)]. However, only a coparcener can become the karta. A spouse/wife of a coparcener (or a karta) is only a ‘member’ (who has limited rights and no ownership of the underlying property at birth) and does not qualify to become a coparcener. Only in exceptional cases where the male members are minors and in the absence of a karta, their mother, as a guardian can represent the HUF for assessment and recovery of tax.

In your case, between you and your brother, if a new HUF is desired to be set up, the eldest son will be the karta of the HUF and not your mother. On a separate note, it is worth questioning why a HUF would be required, as they are not common or desirable in the modern estate planning context. Please speak to an attorney and explore the use of a trust instead, where you can make your mother a trustee.

Rishabh Shroff is partner, Cyril Amarchand Mangaldas. Queries and views at mintmoney@livemint.com

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First Published:23 Jan 2022, 03:10 PM IST
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