uTrade AlgosUnder Hindu Law, a Hindu Undivided Family (HUF) is a unique legal entity comprising all persons lineally descended from a common ancestor. The HUF functions as a single unit for legal and financial purposes, and its structure includes three main roles:
- Karta: The head of the family who manages the HUF’s affairs.
- Coparceners: Individuals with a birthright to the family’s ancestral property.
- Members: Other family members who are part of the HUF but do not have coparcenary rights.
Who Is Karta?
The Karta is the head of the HUF and is usually the senior-most male or female coparcener of the family. The Karta is entrusted with managing the family’s finances, property, trading and legal matters. They act as the representative of the HUF and have the authority to make key trading decisions for the benefit of the family.
Who Can Become Karta?
- The person must be the eldest coparcener in the HUF.
- Both male and female members can become the Karta under current legal provisions.
- At the demise of the Karta, the next eldest coparcener can act as Karta for the HUF.
- If the eldest coparcener declines to act as the Karta, the next eligible coparcener can capture the role, with the consent of the family.
Who Cannot Become Karta?
- Non-Coparceners: Members who are not coparceners, e.g., Karta’s wife or married woman who joins the HUF, etc cannot take up this role.
- Coparceners younger than the eldest coparcener are not eligible to become a Karta, unless:
- The eldest coparcener declines the role, and the family consents to the younger coparcener assuming the position.
- A signed and notarised agreement or declaration is provided by the family stating the appointment of the younger coparcener as the Karta.
- A minor cannot act as the Karta unless there are no other adult coparceners in the HUF. In this case, a guardian will remain a member of the HUF and will act as the guardian having signing authority.
Who Is Coparcener?
A coparcener is a person who:
- Has a legal birthright to the HUF’s ancestral property.
- Can demand a partition of the HUF property.
- Is entitled to become the Karta if they meet the conditions.
Who Can Be a Coparcener?
- Any child (male or female) born into the HUF automatically becomes a coparcener. All coparceners, regardless of gender, have equal rights to the ancestral property.
- The Karta can act as coparcener in the HUF.
Who Can Not Be a Coparcener?
- Individuals who marry into the HUF, such as the Karta’s wife, are considered members but not coparceners.
- The Karta’s siblings cannot be coparceners in the HUF.
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