Q: What do we mean by 'nearer in degree excludes the remorter' ?

Ans: If a heir is not a part of family tree, the nearer in degree excludes the remorter. 

 Let us suppose a deceased has daughter and son.  Both daughter and son have been expired.  The daughter has one son and son has one daughter.  The daughter of son also gets expired but the daughter of son has one son. 

The nearer will be daughter's son and not son's daughter's son even if son's son's son is a part of family tree and will not be excluded.

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