Who will be the nominee for your financial products? – Concept of nominee with example

POSTED BY manish ON October 24, 2010 COMMENTS (425)

Did you think that your nominee is the person, who will get all the money legally from your Life Insurance Policy and Mutual funds investments? Ha! That is exactly what you’d think if you aren’t aware of the legal aspects.

We assume a lot of things which sounds like they’re obvious, but are not true from the legal point of view. Today, we’ll concentrate on nominations in financial products.

Nominee in Insurance , mutual funds

For whom are we earning? For whom are we investing? Who, do we want to leave all our wealth to, in case something happens to us? It might be your children, your spouse, parents, siblings etc., or just a subset of these. You also might want to exclude some people from your list for beneficiaries!.

So you think you will nominate person X in your Insurance policy, and when you are dead and gone, all the money goes to person X and he/she becomes the sole owner? You’re wrong, dude ! It doesn’t work that way.

Let’s see how it actually does!

What is a nominee?

According to law, a nominee is a trustee not the owner of the assets. In other words, he is only a caretaker of your assets. The nominee will only hold your money/asset as a trustee and will be legally bound to transfer it to the legal heirs. For most investments, a legal heir is entitled to the deceased’s assets.

For instance, Section 39 of the Insurance Act says the appointed nominee will be paid, though he may not be the legal heir. The nominee, in turn, is supposed to hold the proceeds in trust and the legal heir can claim the money.

A legal heir will be the one whose is mentioned in the will. However, if a will is not made, then the legal heirs of the assets are decided according to the succession laws, where the structure is predefined on who gets how much. For example, if a man during his lifetime executes a will.

In the will, he mentions his wife and children as legal heirs, then after his death, his wife and children are the legal owners of his assets. It is essential that one needs to execute a will. It is the ultimate source of truth and replaces the succession law. Nominee can also be one of the legal heirs.

Important

  • Mention the Full Name, Address, age, relationship to yourself of the nominee.
  • Do not write the nomination in favour of “wife” and “children” as a class. Give their specific names and particulars existing at that moment.
  • If the nominee is a minor, appoint a person who is a major as an appointee giving his full name, age, address and relationship to the nominee.

Why is the concept of nominee?

So you might be wondering, if the nominee does not become the sole owner, why does such a concept of “nominee” exist at all? It’s pretty simple. When you die, you want to make sure that the Insurance company, Mutual fund or your shares should at least get out of the companies and go to someone you trust, and who can further help, in process of passing it to your legal heirs.

Otherwise, if a person dies and hasn’t nominated anyone, your legal heirs will have to go through the process of producing all kind of certificates like death certificates, proof of relation etc., not to mention that the whole process is really cumbersome! (For each legal entity! The insurance company, the mutual funds, for the shares, for the real estate..) .

So, to simplify, if a nominee exists, these hassles don’t happen, since the company is bound to transfer all your money or assets to the nominee.The company the goes out of scene & then, it’s between nominee and legal heirs.

Example of Nomination

Ajay was 58 years old who died recently in an accident. As his children were settled, he wanted to make sure that his wife is the sole owner of all the monetary assets. This includes his insurance policy and mutual funds.

So during his lifetime, he nominated his wife as a nominee in his term insurance policy and mutual funds investments. However, after Ajay’s death things didn’t turn up the way he wanted. The reason being Ajay did not leave a will.

Though his wife was the nominee in all his movable assets, as per the law, his wife, along with children, were the legal heirs and all of them had equal right to Ajay’s assets.

One simple step which could have saved the situation was that Ajay should have made a will which clearly stated that only his wife was entitled to get all the money and not his children.

#Nomination in Life Insurance

A policyholder can appoint multiple nominees and can also specify their shares in the policy proceeds. Nomination in life insurance has one limitation, as insurance policies are bought to secure your financial dependents, your first choice of nominee has to be your family members.

In case you want to nominate a non-family member like a friend or third party, you will have to show/PROVE the insurance company that there is some insurable interest for the person. This happens because of a Clause called PRINCIPAL OF INSURABLE INTEREST in insurance.

Note that provision of nomination in life insurance is related to Section 39 of the Insurance Act. Note that as per LIC website

Nomination is a right conferred on the holder of a Policy of Life Assurance on his own life to appoint a person/s to receive policy moneys in the event of the policy becoming a claim by the assured’s death. The Nominee does not get any other benefit except to receive the policy moneys on the death of the Life Assured. A nomination may be changed or cancelled by the life assured whenever he likes without the consent of the Nominee.

Make sure, you have a nominee for your policy for easy settlement of the claim, if you do not have any nominee mentioned in the policy, it can turn out to be a disaster for your dependents to get a claim.

#Nomination in Mutual funds

In case of mutual funds, you can nominate up to three people, who can be registered at the time of purchasing the units. While filling in the application form, there is a provision to fill in the nomination details. Even a minor can be a nominee, provided the guardian is specified in the nomination form.

You can also change nomination later by filling up a form which is available on the mutual fund company website. Nomination in mutual funds is at folio level and all units in the folio will be transferred to the nominee(s). If an investor makes a further investment in the same folio, the nomination is applicable to the new units also.

A non-resident Indian can be a nominee, subject to the exchange control regulations in force from time to time.

Watch this video to know what is nomination in Mutual Funds

#Nomination in Shares

Quiz for you :). Now you know what a nominee means and who actually gets the money. So if there is a husband H, with wife W and nephew N, and he has nominated his nephew N to be the nominee of his shares in demat account, who will have the legal right to own the shares after husband’s death?

If you answer is wife, you are wrong in this case! In case of stocks, it does not work the usual way, if a will does not exist.

In the verdict, Justice Roshan Dalvi struck down a petition filed by Harsha Nitin Kokate, who was seeking permission to sell some shares held by her late husband. The Court noted that as she was not the nominee, she had no ownership rights over the shares.

Ms KokaThe’s lawyer had argued that as she was the heir of her husband who had died intestate (without a will), she should have ownership rights of the shares, and be able to do anything with them as she wished.

In this case:

Ms Kokate’s husband had nominated his nephew in favour of the shares. Justice Dalvi however noted that under the provisions of the Companies Act and the Depositories Act, Acts which govern the transfer of shares, the role of a nominee was different.

“A reading of Section 109(A) of the Companies Act and 9.11 of the Depositories Act makes it abundantly clear that the intent of the nomination is to vest the property in the shares which includes the ownership rights thereunder in the nominee upon nomination validly made as per the procedure prescribed, as has been done in this case.”

Source : Moneylife

It means that if you have not written a will, anyone who has been nominated by you for your shares will be the ultimate owner of those stocks, The succession laws on inheritance will not be applicable but in case, you have made a will, that will be the source of truth.

#Nomination in PPF

If the subscriber dies and there is no nomination at the time of death, the balance in the account, if it is upto one lakh, will be paid by the Accounts Office to the legal heirs of the deceased on receipt of application in Form G supported with necessary documents without the production of succession certificate. If the balance is more than one lakh, the production of Succession certificate will be necessary. (source)

#Nomination in Saving/Current/FD/RD Account in Banks

FD’s also come with nomination facility. While opening a new account, there is a column for nomination in the same form and you should fill it. You can nominate two persons with first and second option. Note that in case you have not done any nomination till now, you should request Form No DA-1 from your Bank which is used to assign a nominee in future. (Examples of ICICI Bank , HDFC Bank) . In the same way to change/cancel the nomination you need to fill up Form no DA-2. Read about Corporate Fixed Deposits

As per a famous case, A Bench of Justices Aftab Alam and R M Lodha in an order said that the money lying deposited in the account of the original depositor should be distributed among the claimants in accordance with the Succession Act of the respective community and the nominee cannot claim any absolute right over it.

Section 45ZA(2)(Banking Regulation Act) merely put the nominee in the shoes of the depositor after his death and clothes him with the exclusive right to receive the money lying in the account.It gives him all the rights of the depositors so far as the depositors’s account is concerned. But it by no stretch of imagination make the nominee the owner of the money lying in the account,” the Bench observed.

Conclusion

Now you know! Taking Personal finance for granted can be fatal 🙂 Just investing knowledge, isn’t enough to have a great financial life. You also need to be well versed with basic legal aspects and make sure you carry out all due arrangement .

Nomination is one important aspect you should seriously consider, when checking for the financial products you have bought or plan to buy in future. Mistakes in Personal Finance

Its important to make sure that your loved one’s do not face legal issues and only say and think lovely thoughts about you when you are not around, rather than crib & grumble 🙂 . Fix your nominee in all the financial products

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425 replies on this article “Who will be the nominee for your financial products? – Concept of nominee with example”

  1. Fouziya says:

    My father recently passed away he was getting pension from police department but he not nominated any one name to get pension after him,,will my mother get the pension??? Kindly reply soon

    1. We cant comment on this, as its a state level rules. You need to check with the concerned authority on this matter

  2. Raj Kumar says:

    My father expired in may 2016 and there is not nominee in his bank account. The bank account pertains to father’s pension account. Now Bank Manager is asking for all the four children and my mother to present in bank at a time with certain documents. My two brothers are working in foreign. we all family members are not getting gather at a time. Bank Manager is asking certain hush money to release the amount.

    Please advise..

    1. I dont know what to do other than complain to the bank grivience cell on this

  3. Nitesh says:

    Hi sir, we r 3 brothers & 2 sisters, recently in d month of Oct my father passed away, & he has an account in icici where some held & my father kept only my name as a nominee of DAT account, so now one of my elder brother forcing me to share d amount so assist me.
    Thanks with regard.

    1. You need to contact a lawyer !

  4. Birendrajaiswal says:

    Hello sir,
    I m birendra Jaiswal..
    My father has recently passed away. He had made nominee to my wife. Can she got that asset?

  5. ajay says:

    hi my name is ajay i am working as a assistan proffessor and i am orphange no relation to me can i put accidental insurance policy or any insurance policy .if i put means can i put a nominee who is another orphange but we are living as brothers and we two are living together if i put him as a nominee means after my death did my insurance will go to him

    1. Yes you can put any one’s name in Nominee !

  6. Raman says:

    Hi Manish – My mother died leaving FDs as surety for her brother’s son loan. Nominee was her brother but I am the only legal heir to my mother. Before loan paid and closed my mother died.

    Q: 1. Is nomination still valid or become void when FDs are submitted as collateral for the loan?
    2. Any easiest way to find deposits held by my mother instead of just asking the bank mgr? thinking about RTI, Banking Ombudsmen…
    3. If nominee already claimed the amount of my mother FDs, should the amount go to any trustee kind of acct or it can go to his personal accts itself?

    1. As far as I understand, if the FD is as collateral, then one cant break it just like that unless the loan is paid.

      However imagining the nominee was able to get hold of the money, the bank will transfer the money to their account. I suggest reach out to bank and ask them to hold on by showing the proof that you are the legal heir

      Manish

  7. Michael says:

    Hi manish ,
    My uncle has recently died in January 2016 , he has been speedster but not divorced for about 20 years . He had 6 FDs in a bank and all of them the nominee is my mom( his sister).
    My uncles kids and his wife have filed in court claiming the FDs
    What would you suggest would happen and the best action to be taken regarding this as all this 20 years none of the kids or the wife were in his life but after death they all want the piece of his pie .

    Please reply asap as we have a court hearing soon

    Thanks
    Michael Fernandes

    1. Bharath says:

      Hi maneesh…..even I need answer for the same …

      Bharath khidikkar

  8. sagar says:

    Hi manish
    My father has died in a road accident and his account open in sbi bank my mother is nominee but my mother is neelam and he mention neela bank person says long process so plz u can help me out from this situation .

    1. Hi sagar

      I am not clear on what is your question. Please repeat it with more clarity

      Manish

  9. Rukhsar says:

    Sir meri sister ka death ho gaya Hai par meri sister ne nominee meri behan ki ladki ko banaya Hai lekin abhi meri mummy ko koi dekhne wala nahin toh agar meri mummy ko meri sister ke account se paisa Lena ho toh woh mummy kya let sakti Hai bank account se

    1. No , only nominee will get it

  10. inderjeet says:

    Hi writing here FIR the first time. I want to have a insurance policy in which if I die then the amount or some share of amount can be provided to my cousin.
    Is there any provision or way for this.

    1. You can mention your cousin as the nominee in the policy and also mention the same in your WILL

  11. Manjit says:

    My parents had a flat at Mohali (pb) in joint name with ist nominee being my self and 2nd nominee being my elder brother.My parents & my elder brother have expired. Pl inform if the builder can transfer the flat in my name being the only surviving nominee. If not what process needs to be followed.

    1. You need to involve a good lawyer in this matter.

  12. Archana says:

    Dear Sir ,

    My father died in 2014 . He has account in SBI without nominee . He also has 7 FD associated with this account , my mother name is also included in all the FDS. How can she avail that money as the account has no nominee.

    This account

    1. You mean your mother is joint holder in FD?

      If thats the case, then she can just visit the bank and liquidate those FD !

  13. RAGHAVENDRAPRASAD says:

    my father Rtc employee recently died .my father has got two marriages.first wife is my mother .she passed away before 13 years.my father mentioned pf nominee as my mother name.but after death of my mother my father pf nominee till date he has not change.now father and mother both are died. my fathers second wife argued with me total pf amount she asking 100%. for her but she has all proofs as wife of my father.
    but we argued with her we are legal heirs of my mother .nominee is my mother .
    who have full rights to receiving pf amount full first wife(died nominee) legal heirs or second wife ? who have rights ?

    1. Raghavendra

      BEtter get in touch with a lawyer for this case. Its a complicated one !

    2. Who says:

      @Manish: Thank you Manish for the fun way you have shed bright light on this topic. (It was among the first link in Google search – and provided me the information I wanted.

      @Raghvendra

      Disclaimer: I DO NOT know law.

      You may want to clarify with lawyer if the Time of PF declaration has an impact on first-wife /or legal heirs’ rights.

      IF first wife was alive (example: divorced), and father died after marrying second wife — then first wife would have received all money, as Nominee. (as the article so straightforwardly and wonderfully describes).

      Then, as per law, (Hindu Succession Act or something!) – legal heirs (you and your siblings) may lay claim to the money held by the Nominee. (since no Will, as I learned from the article.)

      Nomination was declared when first wife was alive .. and BEFORE the date your father was married to second wife.

      Maybe exploring this line of reasoning may bring you more benefits. ..

      1. Thanks for your comment Who

  14. Ashish says:

    Hi Manish,

    Revisited this article after about a couple of years. Reason being change in nominee rules in 2015. This article(https://www.livemint.com/Money/bYKOp9A5yMl9WYyEvAdq2L/New-rules-benefit-insurance-nominees.html) in LiveMint says “But the new rules effected by the Insurance Laws (Amendment) Act, 2015, clearly make nominees, immediate family members such as spouse, parents and children, the beneficiary so that the insurance money can go to the intended recipient. In fact, the new rules have another nominee-friendly feature that you must know in detail, but first let’s start with understanding what a beneficial nominee means. ”

    Please enlighten us if this article of yours needs change or still valid.

    Regarsd,
    Ashish

    1. Hi Ashish

      Will have to check that. I will get back incase I find anything

  15. Prasad says:

    Hi Sir,
    If the LIC nominee is minor(child of the insurer) and the insurer is dead while nominee is minor, in that case to whom that money is surrendered? Who is legal heir of that amount if there is no will before death?

    1. Minor also has custodian , that will be contacted !

  16. vishal says:

    Dear Sir,

    my name is vishal. My father was a govt. employee in BSNL as Telephone Mech. I was living with father when i was 5. But the relation with my father of my mother was not good. She was not with us form last 19 years. but suddenly now my father died. and my father nominated my mother as first nominee and me as second in his service book of bsnl. my mother is claiming all the money and pension. my mother do not believe anyone and sir please advice that what should i do. can i get my share form it.

    1. please reach out to a lawyer in this case

  17. Satish says:

    Hi Sir,

    Recently my brother-in-law demised due to accident. In one of his insurance policy, he nominated his mother.
    In this case is my sister eligible to claim the insurance benefit from policy. If yes then what would be the approach. My brother-in-law’s mother is still alive.

    Thanks & Regards

    1. Yes, she is also a valid legal heir. Contact a good lawyer for htis .

  18. PLV Prasad says:

    Hi Sir, my paternal aunt passed away without nominee in her bank account and she is unmarried. How to claim money ? Please let me know. Thanks Prasad

    1. Check with bank, they will share the list of all documents required

  19. ATRC says:

    Hi Manish,

    Thanks for very informative article.

    Few queries related to PPF Death Claim :

    1. There are 3 nominees and one of the nominee died. Will the money be divided between the the remaining 2 nominees only or legal heirs of the dead nominee will also come into picture?

    2. If legal heirs of the dead nominee will get the share then what is the process for defining the legal heirs? Do we need to succession certificate for the dead nominee in that case ?

    3. If a nominee wants to forgo his rights in claim amount then what is the process for that ?

    1. 1. All the legal heirs of the property holder will get the money. Nominee do not have a real role other than receiving the money.

  20. Rohit says:

    Hi,

    My father passed away 4 years ago and he filled the nomination form for PF claim with his employer clearly mentioning he was a widower and made me and my brother as nominee with 50% each.

    My mother passed away long back in 1998.

    The EPFO is insisting for my mother’s death certificate even though my father mentioned his sons as nominee.

    Is there a way out?

    1. Unless you produce the death certificate what is the proof that the person has actually died ? No company will just believe your words !

      1. Rohit says:

        Sir, I don’t want them to believe my words! My father filled the nomination form with his employer as “Widower’ and nominated me and my brother with 50% each. I have my father’s death certificate but not mother’s. However, my father himself nominated both his sons and put his marital status as Widower.

        Therefore, my query was: Can EPFO override the nomination form and insist on mother’s certificate?

        1. Yes, Nomination is nothing but a contact point ! ..

  21. Ranjani says:

    Hello,

    Recently My dad passes away. He has some shares in few companies. Now we are unaware of the procedure with shares. Infact we are not interested in Shares. We want to sell it all. Can you please let us know the procedure to do that same. No will written.

    1. Its not going to be very smooth . YOu need to contact the company/demat account from where he bought the shares. THey will guide you on that

  22. Vikramchauhan says:

    dear Sir

    i am opening a PPF account and i am nominating to my wife after my death.
    my question is if any case both (self & nominee) has passed then who will liable to get the invested amount?
    children or their patients.

    1. The legal heirs will get it. It can be children or many more people

  23. Sri says:

    Hello sir my mother passed away last week.and for her further procedures we need money.she is having FD in bank and the nominee myself..and my dad is not good in character.so shall I get the amount without any inter fear from my dad.

    And also my grand MA passed away( mothers mom) having FD in bank and for that too I am the nominee.she has two daughters and one daughter passed away and another one is alive.that FD amount will be carry forward to whom.for me or for her second daughter.there is no will.kindly reply.

    1. If there is no will then all the legal heirs will be able to claim it ! , not just you !

  24. Shalini says:

    Hello Sir,

    My father in law created FD in which my husband was nominee.

    Both are expired so how my son can get this FD.

    regards

    1. You need to check with bank on this. They will tell you the process

  25. Snehasish says:

    Sir can u give me information about a nominee??i mean to say that for what purpose a nominee is used ???????

    1. The article exactly answers that only

  26. Anindya says:

    Hii…

    I opened my PPF account in SBI 3 years back. But in nominee form of PPF (FORM – E), I mentioned my nominee name and S/B account number at that time as per bank instruction. please let me know whether my nominee will get money from PPF account after my death. My PPF & S/B account’s nominee name is same. I have both S/B account & PPF account in same SBI Branch.

    Thanks,

    1. Yes, your nominee will get the money after your death in both !

  27. Anindya says:

    Hi….

    I opened PPF account in SBI in 3 years back. But in nominee (Form -E) of PPF, I mentioned my S/B account number as per bank instruction at that time. Please advise whether my nominee will face problem to get money after my death from SBI bank. I have also S/B account in same SBI branch. Kindly advise

  28. Jagadish says:

    Hi In post office government scheme Sukanya Samriddhi Accounts says no Nominee what that means. I am putting 150000 per year in that scheme

    1. IT means that if you die, its not clear to whom govt should contact for handling over the money. COntact the post office to add a nominee

  29. Harshil Roy says:

    I think on case of demat account, nomination supersede the will. Please confirm.

    1. I guess it was an old rule . Recently there was a judgement where it was changed

  30. Kartick says:

    Hi Sir,
    My Sister is the nominee of my Jiju Lic Policy. My Jiju Died so my Sister claim the Money and she got the money.
    Now we are thinking that might be my jiju’s 2 elder brother can do interfere , so in this case is my Jiju’s 2 elder brother have any right to do so or my sister has right to do anything with the money.

    1. NO they dont have any right, unless your Jiju has specifically mentioned in the WILL regarding it

  31. Jaya says:

    Is succession law is different for different religion while settling insurance claims?

    If policy holder dies without making any nomination then claim procedure can be different for different RELIGION?

    Are HINDUS are favored while settling claims compared to other religion? I am experiencing this situation as I am non-hindu.

    1. Yes, I dont think that one religion is favoured over others, but the succession laws are surely different for various religions

      Manish

  32. Rajesh says:

    Hi,
    If Group company insurance has nominee who is minor & he receives the amount in his account through joint account holder I.e with guardian.How legal heirs will get this amount as nominee is minor.

    1. They will first have to claim it legally and hire a lawyer for that

  33. Shravan says:

    My wife holds a lic policy but I don’t have the policy details and she passed away recently. She could not update the nominee details due to shortage of time. How can I proceed in this scenario being a legal heir?

    1. Contact the LIC office on this .File a RTI !

  34. Shravan says:

    Can you help me understand about pension? It is not mentioned in the article. Who has absolute right over pension when there is no will? Nominee or legal heir?

    1. Legal Heir .. always ! , BUT nominee will be contacted first and it will be handed over to Nominee !

  35. Manoj says:

    Hi Manish,
    I have 2 accidental death policy.
    Suppose by an means i died in accident. In that case will my nominee get the insured amount from both the policy
    If yes then how the nominee will submit the death certificate to both the insurance company

    Regards,
    Manoj

    1. Yes, they will get it from both insurers . They can deposit the main certificate at one insurance company and the other one will take the declaration

      Manish

      1. Manoj says:

        Hi Manish,

        Thanx for update.

        If both the insurance company forced to submit the death certificate.
        Then what to do

        Regards,
        Manoj

        1. No Manoj

          It does not happen that way, in reality the norm is that if you claim at two places, the 2nd one will accept the declaration and xerox of the copies ..

  36. Shravan says:

    Hi Manish,

    I had a doubt on succession law so referred your articles great infromation.

    I have the following doubts :

    1) Legal heirs

    2) WILL

    3) Nomination

    4) Joint account -Former/Survivor.

    Can you briefly tell us when we have to to use these and which one is superior to each one.
    for example: If i mention different names as legal heirs, nomination, WILL and Joint account in that case which will take over ride all the things.

    Please suggest.

    Thanks,
    Shravan

    1. Shravan

      I suggest you should read my 2nd book – “How to be your own financial planner in 10 steps” for this

  37. suchi says:

    Hello sir I have question regarding LIC policy. Suppose son has appointed father as a nominee before marriage and after marriage he hasn’t changed the nominee but he made a will stating wife as a legal heir for all his asset s, so in that case who will get the lic amount incase something happens to the son?

    1. WIFE will eventually get it . BUt father will be contacted by the bank as he is in the records

  38. Ann says:

    If joint holders , if one dies . Will the bank ask the nominee signature or first the joint holder has rights .. What does it mean for joint holders in Fd and one members expires.

    1. NOminee comes into picture only when there is no account holder. Here in this case, the other account holder will have full rights

  39. Ashok says:

    Hello Sir,or not.
    My dad made society nomination letter in the name of two sister then will my mom able to get share

  40. Ajay says:

    also I will like to add that we approached the bank as someone suggested that we should give an application in bank for freezing the account but bank said that they cannot help us until we provide with some court orders.
    kindly help me in the steps involved

    1. Yes, unless you give them court order, they will not be able to freeze accounts

  41. neekhil says:

    My Granny died this year and she had some FDs in her name… but the nominee for those fds is my Mom’s brother…. My mom’s brother is now not ready to give any money to my mom… My mom was married in year 1985… What do we have to do then… What are the steps involved in it?
    Please help me in this.

    1. neekhil says:

      also I will like to add that we approached the bank as someone suggested that we should give an application in bank for freezing the account but bank said that they cannot help us until we provide with some court orders.
      kindly help me in the steps involved

    2. You cant do much but file a police complaint on this.

  42. Arjun Kumar Mandal says:

    We are bengali,we live in the district of Malda in West Bengal.My married sister with her husband lives at Rajmahal,Sahibganj,Jharkhand.She could not live there due to thier toourchering.Once my sister leaved her house and came to our house.Her husband field a case(mat.suit),Then my sister also field a case u/s125 crpc for interim maintenance. A order has been passed @ Rs 4000 per month for interim maintenance. Then her husband & other family members were request my sister to brought her.Then my sister went there with her husband.She gave birth a female child.Again her family with husband were start tourchering.Her husband is a IRB constable & family is well satled.Her husband does not want to nominate her name in his service book. What can we do? Please give us valuable suggestion. With thanks & regards. Arjun Kumar Mandal.

    1. I think you cant do much in this case, meet a lawyer .

  43. Hansraj says:

    Great Article Manish !!!

    Bravo.

    1. Thanks for your comment Hansraj

  44. hk singh says:

    Can HUF be made nominee in FDR,Insurance Policy

    1. I dont think so , It has to be a human . But still I am not sure !

  45. Rammohan says:

    The problem is simple. Mother who was a worker contributing for PF died and she had nominated husband, She left behind children as well. The husband who was alive when nomination was made is not heard of for last 15 years and it is not sure whether he is dead or not. Can PF authorities insist on proof of death of nominee when claims are made by children?

    1. Yes, if a person is not there for last 7 yrs, he is considered DEAD . You would need to provide documents !

  46. Yogesh says:

    Thank u so much MANISH for sharing your knowledge….I had a query that I have not nominated any nomination on my fixed deposit which I made recently….but it is linked with my pass book in which my mother is the nomination…so, incase I die will there be any problem….if YES then what should I do now.

    1. Fixed Deposits are different. They will have seperate nominee , so better add a nominee !

      1. Yogesh says:

        So what is the procedure for adding NOMINATION….AS I HAVE ALREADY DONE THE FIXED DEPOSIT…….PLEASE HELP

        1. Just contact the bank, you will need to give them a letter !

  47. vinod says:

    The inform are to the point n eqsy to understand…thnks to admin

    1. Thanks for your comment vinod

  48. chirag says:

    sir pls share your email id or pls suggest where to get artical written by you ..i am already reading book written by you in association with network 18

    1. Hi chirag

      You can read all the articles at https://www.jagoinvestor.com/archives

  49. SATYANARAYANA DASH says:

    In case nominees for Post Office Accounts, why don’t the Post Office keep Photographs of the Nominees for easy identification after the Death of Depositor?What are the other Documents required to be produced by the Nominee?

    1. Because its a low priority thing , no institutions was it to be a complicated process

  50. Sujachandran says:

    Hi I am suja from Chennai. My grandmother wrote a WILL into my mom d my name before her died and also it was registered. My father is staying with other family so my grandmother gave the share of my father to my mom and me. My father’s elder brother only taking care of us d my property. They only getting My house rental every month of 19000 and from that rent only 4000 will be given to us. We built a house in the YR 2000 for that they put credit of 10 lakhs. For that we have paid from my rental amount these years. After that 10 Lakhs got over they are not giving my property. They are saying we will only maintain this house and this is belongs to us. They have locked that house now. What shall i do at this time?

    1. You should take help of a property lawyer on this

  51. mahesh says:

    Hello Sir

    My Uncle was died he is unmarried and single

    he have lic policy and bank fix dip posit also

    my dad is nominee for all policy (my dad is real brother)

    but problem is that

    my uncle do satsang, kirtan on temple at village.he stay that village alone till death

    now village people say he not give death certificate or any another lic paper to my father

    they say They want all money to village account.

    So what we do can please tell me

    1. Mahesh

      LEgally the village people are wrong . They cant do this . Its against the law ! .. SO just ask your father to contact a good lawyer and it will all be done !

      Manish

  52. Sowmya says:

    Thanks alot for your advice Sir but me and my daughter are legal heirs, dont we have any power in that business.

    1. If you are , then definitely you have legal share . Catch a lawyer for this

      Manish

  53. Sasidhar says:

    My father and mother died. I am 50 yrs old . Salaried employee. I am unmarried. I have brother and sister. Can I nominate my brother or sister for my life insurance policy ? Plz clarify. Will Insurable Intrest applicable .

    1. YOu can nominate your brother or sister. No issue

      1. Sowmya says:

        Sir, my husband started a (sole proprietor)timber business ( Selling cut sized woods by planing wood logs) he invested around 5 lac to it and have plan to invest more in future, but am the person who given money to start business by pledging my gold, now the problem is he telling that he will do nominee in the name of his brother, am very shocked by hearing it, because i have a daughter (2years), if he nominated his brother what is next, is me or my daughter will not get authority of that business after my husband?, What rrights we have in that business, he not yet written will. He telling that he will do nominee for me to his current account, and business no
        inee is his brother, am not ready to give up my hard investment this is my dream project so please give suggestion

        1. Soumya

          SO that back the money . You have no other choice. If he does not want to make you nominee, there is no other choice you have other than taking the money back

          Manish

  54. MARIE says:

    Hi, Could anyone help me on this? Actually I took a policy in my husband’s name and paid for 3 years and stopped due to some misunderstanding between us. Now 10 yrs got over. Policy got matured. I want my money back. I was nominated in that. Matured value has been received from the company. Now what I want to know is whether my husband can give will to receive the amount by me from the company. Will it be acceptable by the Insurance Company? Because I dont want this amount to go to his account which is not recoverable. Or shall I ask him to give will to transfer this amount to my daughter’s name(for a new policy taken).. Kindly advise me the possibilities..

    1. The policy money will be given to the person on whose name the policy is, nomination comes into picture only when the policy holder dies !

      Manish

  55. sachin says:

    Sir
    2 questions
    I)If will and nominee differ in case of dmat who will get ownership nominee or will
    ii) if in will there’s no mention of dmat securities, then will nominee of dmat get the ownership.

  56. Jaspinder says:

    I have one confusion in nomination form of fixed deposits. What should I write in “Nominee relationship with depositor (if any) __________”, in case I want to nominate MY FATHER. Should I write “Father” or “Son” ?

    I was filling one mutual fund application form where it was clearly mentioned that If I want to nominate my “Father”, then I should mention “Son” in this field.

    Please clarify.

    Regards,
    Jaspidner

    1. The question is clear

      What is NOMINEE Relation, not yours relation with nominee . So here you have to put FATHER !

  57. mukesh says:

    gr8 .. informative article .

    Can you clear the process in case of SB a/c, RD,FD etc ?? i,e is person X have Nominee “Y” in all his bankings a/c then to whose account the bank will transfer the money ?? Y or legal heirs ?

    I read in your article that if you have nominee then its the matter between nominee and legal heirs , bank is out of it. Does it mean that bank will transfer the amount to nominee and later legal heirs (under succession acts) can claim there share from nominee ??

    1. Hi mukesh

      Nominee is just the authorised person to get the money from bank. After that it has to be given to legal heirs . Nominee can also be one of the legal heirs !

      Manish

  58. neha says:

    How many days it takes for LIC to give back the money after a persons death in who’s name the policy was ????

    1. Neha

      Once you have completed all the documentation formality , it should not take more than a month, unless there is any complications

  59. devp says:

    Thanks a lot for your guidance.

  60. Ashok says:

    In case of Life Insurance policy, what happens if there are two nominees and one of the nominee dies along with insured person. Will the other nominee get 100% of risk cover ?

    1. The other nominee will be getting the custody , but not the ownership . Its only for those who are legal heirs !

  61. yash says:

    Who will be the final oner of the property the first nominee or the second nominee what are the rules about land and all.

  62. devp says:

    If an owner of the property becomes mental / unsound. For the property that was bought long time ago when the owner was with good health. Does the nominee – being the Owner’s husband – can attain the asset ??? or will this be transferred to the Owner’s Kid – 12 yrs old.

    2. If the Owner is with good health with property -, nominee being her husband for the property. Does she requires her husband (nominee’s ) signature while selling her property.?
    What does Nominee right say ? Does the wife need to pay any share to Nominee.

    1. Nominee comes into picture only when the person dies , else not

  63. Pradeep says:

    Dear Manish,

    I am looking for your support in getting information on the similar case but advanced – If both depositor (FD) & nominee are expired.

    My grandmother has a FD with my father as nominee, but both have expired now. But bank is not willing to handover to my mother even on producing both death certificates. They are asking to produce family tree document & NoC from all childrens of my grandmother to claim this. Is this the RBI policy ? .
    Please let me know. Thanks

    1. Not an RBI policy , but this is what happens when there is no proper WILL written . If your father left a WILL , then it would be less painful else you will have to visit a lawyer and get some legal documents ..

  64. Dilip singh says:

    Hi, Manish sir
    My grandfather has one FD and he is nominated me. Now he died then what bank can do if my grandmother, my father and uncle are also alive.

    1. bank cant do anything , you can do with death certificate and your KYC and the money will be transferred to your account. However you just have the right to receive it. You are not the Legal heir completely. So others can also claim for it from you !

  65. prabhat singh says:

    Dear
    mainsh
    nomini is minor

    and not a appointee how can claim of policy in lic

    1. Please explain the question

  66. mr fernandes says:

    hello manish,

    Due to horrifying strained relations with my elder brother and sister, my father sold his flat in baroda, moved in my 2 bhk flat solely, and put the money in fixed deposits (in both names with former being him and latter is me) with mandate of former or survivor. I have a married elder brother and sister, can they claim the fixed deposits on his death?

    if a registered will is drafted exclusive in my favour as an only legal heir will it be emough for the bank? is the will enough for me to claim the fd’s on his death from the bank?

    will the bank ask for succession certificate inspite of my father declaring in the will that I am the only legal heir and the other siblings have no rights.

    thanks and regards

    mr fernandes

    1. Yes, a proper will is good enough to claim it ! . I am putting up a mail on this to you

  67. Raminder says:

    Sir,
    My grandfather died due to some medical problems but now question arised that he doesn’t nominated anybody even his wife on his fixed Deposit. Fixed deposit amount were about 10 lakhs so my question is how to get that money from the bank.

    With Regards,
    Raminder

    1. If there is no nomination , the only problem is that how to recover it from bank, but the final owner will be all the legal heirs , so your grandmother would be one of them and your father will be another

  68. H shankara says:

    Dear Sir,
    As per your reply no 269 dated 18/05/2014, I went to the bank along with the letter enclosing the doctor’s certificate. Doctor’s certificate is dated 28/07/2012, but the mental problem was there since one month back.( one month earlier to the date of certificate) It has been clearly mentioned. They have verified the recorad also and there was a slight difference in the signature of the account holder. The A T M was handed over on 27/07/2012. The bank says that your mother inlaw might have come personally with her son and got the ATM by signing in the register. My question is as per the medical certificate when she is not fully aware of anything how can she sign? Even take it for granted she had signed whether it is valid? Inspite of all these things and my request to block the ATM they refused and said I should get a letter from my mother inlaw to the effect. I said when she cannot read and write how do you expect me to get the letter from her . I told the bank ,had she been able to read and write and the transactions were done with her presence of mind I would not have come here. I also told, you bank people are protecting the fruad and the genuines are neglected. Sir what is my next course of action please guide me.

    With regards
    shankarhittuvalli

    1. Better reach to banking ombudsman now …

  69. H shankara says:

    Dear Sir,
    I got the answers for my three questions. I really thank a lot for enlighting me.

    with regaards
    shankarhittuvalli

  70. one my uncle actually he his not my relative person but he nomineate me.in that case what happened here i want to know the case.and he have his family members also in that case what will be happen the nominee wil be selected for me or his family member.please give me reply ……..

  71. H shankara says:

    Dear Sir,
    Some x person having a/c with different banks can he sigh differently in different banks and on pan card also . In such case whether all the signatures are valid ? in such cases how to prove whch signature is genuine or forged. Please guide me

    With regards
    Shankarhittuvalli

    1. I think its not at all a good idea . A person can have just one signature .. The other one will be considered as fraud !

  72. H shankara says:

    Dear Sir,
    My mother In-law is a retired teacher by profession and has a lot of literacy works and also used to teach after retirement. Oflate she is suffering from Visual Hallucination. Occasionally she does not recognise the family members doesnot recognise alphabets, currency etc, I have a doctor’s certificate dated 28-07-2012.
    As per the certificate the problem is since one month i.e. 28/06/2012. My mother inlaw is getting her pension and family pension. My brother-inlaw used to draw the amount by by getting her signature. Now the problem is when she does not know what she is doing whether any contract entered into with her is valid?. And now my brother-inlaw has availed ATM from the bank and is drawing regularly. Now I want to know whether the bank is in order in issuing the ATM . Please enlighten me.

    With regards
    Shankarhittuvalli

    1. If this is the case, you must inform the bank about it and ask them for the solution . Also make a doctors certificate mentioning that she is having this issue from so and so date !

      Manish

  73. H shankara says:

    Dear Sir,
    Can the legal heirs stop making the payment to the nominee by just giving the letter to the financier if they doubt about the integrity of the nominee?

    With regards
    Shankarhittuvalli

    1. Nominee is not suppose to get any thing anyways . Its the legal heir who have the right !

  74. deepa says:

    Sir, My brother had a postal life insurance for Rs 2.5 lakhs, nominated in my mother’s name. later he got married but not changed the nomination to his wife. they do not have any children. After one year’s of marriage, he expired. Now my mother has claimed the death claim. but they are asking for consent by his wife. under what rule please inform. The matter is very serious as she may not give consent. what if she does not give her consent? please inform.

    1. Nomination does not mean much , In this case the money will be divided as per HINDU RULES OF SUCCESSION , wife and mother will be divided 50% money each !

  75. sir, as you are saying that nominee is not the legal owner of the money in a saving bank account then what to do to get the full ownership of the money in a saving bank account.
    Can i declare the percentage of share in the nominee column to get the full ownership of money?
    Is this will be legal?

    1. One has to write the WILL for that, else it will be decided as per Succession Law

  76. Surya says:

    Dear Manish Chauhan
    QUOTE:
    Let me give you some shock first. If you have Rs 10 lakh in your public provident fund (PPF) account and you have not nominated anyone for your PPF account, your legal heirs will get maximum of Rs1 lakh only!
    UNQUOTE

    This is not factually correct. Request you to correct the Article for this.

    Below is from https://www.statebankoftravancore.com/ppf.htm:

    (22) If the subscriber dies and there is no nomination at the time of death, the balance in the account, if it is upto one lakh, will be paid by the Accounts Office to the legal heirs of the deceased on receipt of application in Form G supported with necessary documents without the production of succession certificate. If the balance is more than one lakh, the production of Succession certificate will be necessary.

    Regards
    Surya.

    1. Hi Surya

      I have updated it, I had mis-interpreted it earliar ! . Thanks for correction

  77. Peyush says:

    My father passed away on 15/12/2013 with only legal heirs as myself and my mother.
    My father has Savings a/c(2 lac) PPF a/c(6.3 lac) 3FD (3.01 lac); i.e, total 11.31 lac in all cases nominee mentioned with my name. In PPF a/c it also has my photograph.

    When I went to Bakultala SBI branch(SBIN0001489) Branch Manager is asking for succession certificate. Is it really required though the nominee mentioned?

    India-Kolkata

    1. Hmm. As per my understanding a Bank can ask for succession certificate if there is any confusion or they suspect if there is any issue with claim. But when nominee is very clear, ask them why its required, Under what rule ? My assumption is that they just are dragging this and want to delay it so that money can be with them for some more time and they can use it for “banking”.

      Do one thing. File a RTI and ask them for the RBI ruling on this and give you document which states the rules .

      Manish

  78. ANEESH says:

    Dear Manish ,

    When my father died last year he did not make any WLL and my mother decided to get a legal heirship certificate and she collected my ID proof and sisters ID proof and now i hear that my sister was appointed as a nominee for all the deposits my father made like post office,bank fixed deposit and even the money received after my father s death from the company as PPF. Does it mean that my sister will get all the share of deposits and house? or i am also entitled for the share as a son. Kindly explain are all three entitled for equal rights of ownership.

    1. If there was no WILL , then surely you will get share in all the things other than DEMAT ACCOUNT (nominee is final owner). But I think you are at a situation where you need to catch a lawyer fast and file a case against them.

      Manish

      1. aneesh says:

        can they use my signature to make WLL saying that i have agreed to give them all share.

        1. That fraud possibility is always there, but if its a fake signature, one can always contest that in court !

      2. aneesh says:

        My Mother want to become the legal hire and does it mean as a son i will not have any right on property and deposits. If she becomes the legal hire will the property alone goes to my sister after my mothers death. Kindly clarify. In the ration card she has included me and my sister name also as son and daughter as to get her legal hire ship as my father had not written a WLL before his death. Is there any chance of my sister and mother can cheat me.

        1. One can not just become a legal heir as per their wish, one becomes legal heir either as per WILL or as per law . So you are one of the legal heir at the moment. Catch a lawyer on this matter soon and take it forward !

  79. un-Known says:

    I am a girl and married before 2 year my husband didn’t put me nominee in his any Lics or in any fd or in bank account .He put his fater as nominee.His family member very rude towards me .What problems I can face???? and How to say my husband to put me nominee in all???

    1. Nominee is not the final owner , do you know that ? Just make sure that the WILL is in your favor 🙂

  80. M VIJAYA SARATHI says:

    My mother expaired in Mar’13. She had amounts in savings bank account and in FD without naminee. How can I get the amount from bank?

    h

    1. You need to first get a PROBATE from court and also succession certificate .

  81. Nikhil says:

    My father had nominated my then unmarried sister on some of his investments. Now, she has got married. Should the nomination be updated even if the person is the same?

    1. Why should the nomination be changed just because she is married ?

  82. Asutosh says:

    Sir, I seek your learned advise for the following: My daughter (unmarried) who was 46 made her younger brother as nominee for some of her bank Fixed deposits.
    All of a suddedn she passed away due to heart problem. Can we now change the
    nomination? When and How? Regards

    Asutosh

    1. You cant change it . Only account holder can Change it . Now the account has to be dissolved and the money has to be divided among legal heirs . As she is unmarried, the CLASS 1 legal Heir are parents for her . So you as father have the full right on it . Go to bank and check this out . But as there is WILL (assumption) ,you will now have to bring succession certificate and PROBATE from court to go to next level. Meet a good lawyer

  83. P S Mann says:

    Hi Manish !

    I have a query on Nomination.

    Well in our case my grandfather has nomination of my father in a Bank FD. Now my grandfather as well as my father is no more and the FD is laying with the bank still.
    Now my question is that who are the legal heir of the FD, all sons of my grandfather or wife and sons of my father .
    Please guide me .

    1. Its as good as there is no nominee .

      All the wives of children and the grandchildren will be legal heirs (both boys and girls)

      1. P S Mann says:

        Well Manish I want to know that weather all sons of my grandfather would claim the money laying in the FD or the legal heir of my father , ( my mother and sons of my fahter) as he was the nominee of that FD.

        1. Nominee is just a care taker, not the final owner. If the WILL is not written, then all the sons and daughters will be legal heir along with MOTHER .

  84. Friend says:

    Hello Manish sir,

    I am stuck in big issue. Please require your kind assistance.

    My Grandfather (who owned a house) has written on a piece of paper that after his death house will be on name of myself, my sister, my father …. recently the house is transferred on the name of my father …. but now when i asked my father to include my and my sister’s name as an nominee …. he denied to include our name in nominee ……….. now i strongly believe that my sister’s plan is to force my father and take over the house property via making WILL (of my father) in future days ……….
    I want half share in house (not 1/3rd based on grandfather’s will) ….. so should i challenge the genuineness of WILL made by grandfather (which is simply written on piece of paper signed by him, with no evidence signatories) and claim my half share via ancestrial property ….OR else is there any other legal way where i can claim my half share ……

    Thanks in advance

    1. How can you claim 1/2 right now ? Your father and sister are already there . The property is ancestral only when its not divided . Here , its already divided amount you 3 . Your father is suppose to use his 1/3rd part as he wants and can give it to anyone . First mistake of you all was to allow it to be registered on father name itself , which was against the WILL . Now file a case for this and only a good lawyer can help you on this .

  85. jayalakshmi says:

    sir my husband died in road accident he is holding physical share certificates
    what is the procedure to make transmission no nomination or no will

    1. You will have to meet a lawyer now , The process is going to be long .

  86. Shakti says:

    Thanks for your advice…manish bhai….i will contact a good lawyer.

  87. Shakti says:

    Manish bhai….congrats for your excellent article and question-answer sessions….many things have been clarified……i need your help/guidance in my case……I am the sole nominee of the flat of my elder-unmarried brother who died about 4 years ago….now we are surviving 3 brothers and one sister (Heirs)…..i have applied in a hand-written-letter to society to transfer the flat in my name, but the society has not given any reply…do i need to send them a legal notice or do i send another reminder…and what documents will society ask me to complete the formality…kindly guide me.

    shakti.

    1. In case of property is not so easy . There might be a requirement for you to do a lot of things. I suggest hire a CA or lawyer on this

  88. amar says:

    Can someone throw some light on the ‘Will’ to be made for the ‘benefit’ of Mentally Retarded son, in the event of unpleasant events?

    1. generally TRUSTS are used instead of a WILL when its these kind of situation . I would suggest meet a company which helps in trusts creation .

  89. roshni says:

    Hi Manish ,

    My uncle is the deceased who died two years back by nominating for bank amount and also wrote a will in favour of my mother. Now my uncle’s wife i.e, my aunt is claiming for the succession . Now my question is that according to Law whom does the amount goes

  90. Devjeet says:

    Dear Manish,

    First of all, thank you for your effort to create this wealth of knowledge, which comes in handy for the average investor.

    Now, I need your valuable inputs to this case of mine..

    My father had a pension account in a branch of SBI, where he had opted for nomination and named me as a nominee at the time of opening the account. At that time (1998), I was a minor. (I have the form DA-1 stamped and duly signed by the Chief Manager as a proof of nomination)

    My father passed away on 10th Feb 2013. So I visited this particular branch of SBI for settlement of remaining funds in my father’s account. Where the official at the counter told me to go to Manager (Personal) cabin, as he takes care of all the death cases.

    I waited in Manager’s cabin for more than an hour (he wasn’t there.. typical SBI thing I tell you).

    When he arrived, I discussed the matter with him. When he checked my father’s account no. in the system he told me there is NO NOMINATION in his account as the same is not updated in their system. (he tried to dismiss the nomination claim even after I showed him the original form DA-1)

    Then he gave me a Claim Format, which requires indeminity, letter of disclaimer, affidavit, stamp duties and possibly a succession certificate too., which I’m sure requied only when the deseceased had died intestate (without a nomination) and asked me to come tomorrow.

    My question is.. Is this my fault that the nomination is not updated in their system? Why should I go through this lenthy and expensive procedure of claim settlement when I AM the nominee???

    I am thinking about escalating this matter to the banking ombudsman.. But need your advice first.

    Thank you in advance!!!

    Devjeet

    P.S. – I have already given an application to the treasury to stop the pension as there is no question of family pension since my mother is already desceased.

    1. You have to proof that there was a nomination done and you have the proof, but what is the nomination was removed by your father in between ? Do you know that ? It might happen that you are not aware about this , that your father some years back removed the nomination . I know there are very small chances for this.

      So now your next action is to ask the bank about the proof you have and when you have it, how do they have it missing ? There has to be some explaination for sure, else it calls for a complain to banking ombudsman on this .

      Now if bank accepts their mistake and they agree that you are nominee, then you will have to produce the death certificate, the documents asked by them for your identity, relation proof etc .. Succession certificate is only required when there is no nominee + no will .

      1. Devjeet says:

        Thank you so much for your prompt reply.

        I visited the bank the next day and requested the manager to check the old records from record room for nomination details. On checking the records he found the bank’s copy of nomination form, folded and badly placed behind the original account opening form submitted by my father at the time of opening the account.

        Now that it is comfirmed that there was a nomination, he asked me to present my ID and address proofs, which I presented instantly. Now he’s saying that he needs to visit my house for verification. I have never heard that address verification is required before transfering funds to the nominee. Is there any such rule?

        I believe he wants to visit my house to ask for some bribe. There was some indication.

        Lets see..

        Thanks a lot once again.

        1. Ok , then do this .. just file a RTI and check what is the procedure for taking back the money . Do not entertain the manager , he has to do his task anyways .. use RTI and he might do it faster 🙂

  91. Devjeet says:

    Dear Manish,

    First of all, thank you for your effort to create this wealth of knowledge, which comes in handy for the average investor.

    Now, I need your valuable inputs to this case of mine..

    My father had a pension account in a branch of SBI, where he had opted for nomination and named me as a nominee at the time of opening the account. At that time (1998), I was a minor. (I have the form DA-1 stamped and duly signed by the Chief Manager as a proof of nomination)

    My father passed away on 10th Feb 2013. So I visited this particular branch of SBI for settlement of remaining funds in my father’s account. Where the official at the counter told me to go to Manager (Personal) cabin, as he takes care of all the death cases.

    I waited in Manager’s cabin for more than an hour (he wasn’t there.. typical SBI thing I tell you).

    When he arrived, I discussed the matter with him. When he checked my father’s account no. in the system he told me there is NO NOMINATION in his account as the same is not updated in their system. (he tried to dismiss the nomination claim even after I showed him the original form DA-1)

    Then he gave me a Claim Format, which requires indeminity, letter of disclaimer, affidavit, stamp duties and possibly a succession certificate too., which I’m sure requied only when the deseceased had died intestate (without a nomination) and asked me to come tomorrow.

    My question is.. Is this my fault that the nomination is not updated in their system? Why should I go through this lenthy and expensive procedure of claim settlement when I AM the nominee???

    I am thinking about escalating this matter to the banking ombudsman.. But need your advice first.

    Thank you in advance!!!

    Devjeet
    P.S. – I have already given an application to the treasury to stop the pension as there is no question of family pension since my mother is already desceased.

  92. Veerendra.S says:

    Dear Sir

    My dad has some money in sbm bank savings account.
    There was no nominee made for it,due to sudden death of my father we are in deep trouble.
    Bank is asking for Affidavit,surety of 2 persons whose value of assets in more than 25lakh.
    We provided them our family tree certificate and survival surtificate,but they are asking for other details of surety persons like tax paid by them,their property certificates etc…
    Kindly help us
    Best regards
    Veerendra.S

    1. I know .. this is what happens when Nominee is missing .. if will is also not there, you will have to run around a lot.

      Now you need to bring a succession certificate from court to prove that you are legal heir.

  93. Kalind Pathak says:

    My late brother-in-law who was unmarried at the time of his death, had nominated his sister as his sole nominee for his PPF account. We have submitted form G for withdrawal of PPF account balance to his nominated sister. However, the bank manager insists on seeing the nominated sister in person to ascertain her identity before releasing the funds in her favor. Is he right on insisting her presence? Can she not authorize any one of us who stays at the same place where the account was opened to receive the cheque on her behalf?

    1. Obviously NOT .. Also she is just a nominee .. Is she also the valid legal heir ?

      1. Kalind Pathak says:

        Thanks a lot for your prompt reply.
        I believe she is one of the legal heirs. My brother-in-law was very young when he died. He was only 26. He is survived by his mother and 2 sisters. He had left no will but the mother and the other sister who is my wife do not have the slightest objection if the nominated sister receives the dues. Are any other affidavits/ documents required apart from form G that is already submitted?

        1. Here is the answer

          Documents to be submitted with the deceased claim case: – The following documents are required to be submitted with the claim case of the deceased subscriber: –

          (1) Where there is a nomination

          (a) Application form for withdrawal in Form G by the surviving nominee/nominees.
          (b) A certificate in regard to the death of the subscriber.
          (c) A certificate in regard to death of Shri.______ also the nominee appointed by the subscriber.
          (d) Pass book of the subscriber.

          Good that nomination was done atleast and other legal heirs have no issues..

          Manish

          1. Kalind Pathak says:

            Thank you very much. You just saved us a lot of trouble and expenditure.
            Best wishes.

  94. Sir, is marrage certificate not succession certificate? Then which is succession certificate?

    1. No , succession certificate is something which declares that you are the valid legal heirs . You take it from court

  95. Dear Sir,
    My Husband was died before 1 year. He was a holder of PPF account, Where no nomination was made. and account open before marrage. Can i claim the PPF account balance?

    1. Not all .. I am assuming that there was no written WILL , in which case all the legal heirs will have claim on that PPF account . If you have children , mother of desceased , all of you will be valid heirs .

      Because of absence of WILL and even nominations , you will have to bring a succession certificate from court to prove that you are the legal heir

  96. shadaba says:

    Nicely written.

    Should I rather make my minor kids as nominees and wife as guardian rather than making only wife as nominee without mentioning kids at all. First option covers everyone and second does not. Also considering eventuality when spouse is also gone with me then dont want assets nominee-less. Please advise.

    1. Then why dont you make Kids + Wife as nominees .. MOre than one person can be in nominees ! .. Also more than nominee work on the WILL .

  97. Abhijit says:

    Manish,
    Greatful to you for Nominee- topic.
    My issue is- i dont know the exact details of the movable assets of my uncle who died intestate and i am one of the legal heir.Also, I live away from our place.
    My quaries are – i) how to get details of his a/cs in case the other heirs denying to
    give such details?
    ii) if the nominee dispose the assets to other legal heirs without my knowledge what will be my course of action to get my share in that?

    1. In that case you first need to file a case against them and get a stay from court , so that they are not allowed to consume the assets , else they can sell it off or use it for some purpose .

  98. pro s parghi says:

    thank u sir
    i can write a pertinently will. it possible never change this will

    1. What is pretinently will ?

  99. RAHUL says:

    Dear Manish,

    Is it mandatory to mention the nominee name on proposal application in life insurance ?

    1. No its not . But if you dont, it will be a big issue later.

  100. ashok agarwal says:

    i have term insuarance and my wife is appointed as nominee in insuranse policy and husband and wife died together in accident than what will happen will their children get claim.

    1. Then your legal heirs will get the money , it will be like NO NOminee !

  101. ashok agarwal says:

    if wife is appointed as nominee in insuranse policy and husband and wife died together in accident than what will happen will their children get claim.

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  103. vishesh sharma says:

    Hi Manish.

    You are doing a very good job..I am just Enter in the financial Sector, and i got such a wonderfull blog JAAGO INVESTER.com
    so many Important information I get from your blog..
    Manish can you guide me ,how can i grow my self in the financial sector,
    Right now i am working in life Insurance Genral Insurance, Mutual Fund Sectors, and also I add one more option,which one is NCD.
    I Want to study in financial sector. On the ncfm site i got many type of exam .
    Please guide me from the begins.From where I have to start my study

    Thanks

    1. Better follow us at jagoadvisor.com

  104. nisha says:

    what is the procidure if one nomiee and account holder is die in ppf account..?

    1. Then it means there is no nominee at all , now one has to bring succession certificate from court to prove the legal heirship !

  105. Kapil Kumar says:

    Hi Manish!!

    Need your help.
    My mother got demised in the age of 62 and her PPF a/c has nominee quoted me (son) and my sister. Sister got married around 4 years ago and my mother forgot to remove my sister as nominee post her marriage. My sister is now in abroad and can not come until one more year where as i need to withdraw amount on priority (to settle some financial obligations). can affidavit will support her absence and enable me to get the money solely. is that possible? any other way around?

    Mothers A/c in SBI UP and I am currently in MH.

    Thanks
    Kapil K.

    1. Kapil

      I am not sure if there is a fast solution, you will need a letter from your sister atleast, you can get a NOC letter from your sister atleast. Talk to a lawyer on this

  106. Jay says:

    Hi Manish,

    Read your article. Excellent piece. I had some general questions regarding my case.

    My dad passed away recently and had a nominee for his accounts. The nominee is his son, my brother. We are 4 brothers and 1 sister in total,(5 siblings) (I am the sister).

    The nominee is not on speaking terms with any of us and it appears he is going to keep all of it for himself. So what would your best advice be to proceed so that all assets are divided equally between all 5 of us.

    I am grateful for your advice. thanks
    Jay

    1. He cant do that, he is just a nominee .. better you guys file a case with him and also inform bank that you all are legal heirs ! .. You all will get 20% each

  107. Sagar says:

    Hi Manish,

    Need to know, i have 2 life insurance policy & have seprate nominee for the policy (Mother & Wife). My question to you is, as far what i know insurance company does not ask for proof if the nominee is his mother, however if the nominee is wife she has to submit some proof e.g marraige certificate, now the problem with me is that i still dont have a marraige certificate, so incase something happens to me how can my wife claim the insurance money.

    Should i have a WILL to be on a safer side so the same can be produced to the insurance company incase required.

    Also want to know i have a home loan so will the insurance company take care of this while settling the claims.

    Thanks
    Sagar

    1. You got to be working fast on the marriage certificate soon ! .. Just saying that you dont have it will not work . If you do not have marriage certificate , then hell lot of issues will crop up , its a legal proof that you are married to someone , so better apply for it , how tough it is ! ..

  108. Sunil says:

    Hello,

    Just now gone through the RBI circular which says that after the death of the deposit holder, the nominee must be given the money without any succession certificate,letter of administration or probate etc

    https://www.easylaw.in/act.php?aid=6

    Date: 12/07/2005
    Settlement of claims in respect of deceased depositors – Simplification of Procedure

    RBI/2005-06/48
    RPCD.CO.RF. BC.No.12/07.38.01/2005-06

    July 12, 2005

    The Chairmen/CEOs
    All State and District Central Co-operative Banks

    Dear Sir,

    Settlement of claims in respect of deceased depositors – Simplification of Procedure

    Pursuant to the announcement in the Mid-Term Review of the Annual Policy of the RBI on November 3, 2003, the Committee on Procedure and Performance Audit on Public Services (CPPAPS) was constituted by the RBI with a view to improving the quality of public services to the common person. The Committee in its Report No.3 on ‘Banking Operations : Deposit Accounts and Other Facilities Relating to Individuals (Non-Business)’, observed that the tortuous procedures, particularly those applicable to the family of a deceased depositor, caused considerable distress to such family members. While the instruction regarding settlement of claims in respect of the deceased depositors had been issued to the banks vide our circulars RPCD.CO.No.RF.BC 09/07.38.01/2000-2001 dated August 22, 2000 and RPCD.CO.No.RF.BC. 59/07.28.01/2000-2001 dated February 27, 2001, the existing dispensation has been reviewed in the light of the recommendations of the CPPAPS and the following instructions are being issued, in supersession of all the earlier instructions on the subject, to facilitate expeditious and hassle-free settlement of claims on the death of a depositor.

    2. ACCESS TO BALANCE IN DEPOSIT ACCOUNTS

    (A) Accounts with survivor/nominee clause

    2.1 As you are aware, in the case of deposit accounts where the depositor had utilized the nomination facility and made a valid nomination or where the account was opened with the survivorship clause (‘either or survivor’, or ‘anyone or survivor’, or ‘former or survivor’ or ‘latter or survivor’), the payment of the balance in the deposit account to the survivor(s)/nominee of a deceased deposit account holder represents a valid discharge of the bank’s liability provided:
    a. the bank has exercised due care and caution in establishing the identity of the survivor(s) / nominee and the fact of death of the account holder, through appropriate documentary evidence;
    b. there is no order from the competent court restraining the bank from making the payment from the account of the deceased; and
    c. it has been made clear to the survivor(s) / nominee that he would be receiving the payment from the bank as a trustee of the legal heirs of the deceased depositor, i.e., such payment to him shall not affect the right or claim which any person may have against the survivor(s) / nominee to whom the payment is made.

    2.2 It may be noted that since payment made to the survivor(s) / nominee, subject to the foregoing conditions, would constitute a full discharge of the bank’s liability, insistence on production of legal representation is superfluous and unwarranted and only serves to cause entirely avoidable inconvenience to the survivor(s) / nominee and would, therefore, invite serious supervisory disapproval. In such case, therefore, while making payment to the survivor(s) / nominee of the deceased depositor, the banks are advised to desist from insisting on production of succession certificate, letter of administration or probate, etc., or obtain any bond of indemnity or surety from the survivor(s)/nominee, irrespective of the amount standing to the credit of the deceased account holder.

    (B) Accounts without the survivor/nominee clause

    2.3 In case where the deceased depositor had not made any nomination or for the accounts other than those styled as ‘either or survivor’ (such as single or jointly operated accounts), banks are advised to adopt a simplified procedure for repayment to legal heir(s) of the depositor keeping in view the imperative need to avoid inconvenience and undue hardship to the common person. In this context, banks may, keeping in view their risk management systems, fix a minimum threshold limit, for the balance in the account of the deceased depositors, up to which claims in respect of the deceased depositors could be settled without insisting on production of any documentation other than a letter of indemnity.

    3. Premature Termination of term deposit accounts

    In the case of term deposits, banks are advised to incorporate a clause in the account opening form itself to the effect that in the event of the death of the depositor, premature termination of term deposits would be allowed. The conditions subject to which such premature withdrawal would be permitted may also be specified in the account opening form. Such premature withdrawal would not attract any penal charge.

    4. Treatment of flows in the name of the deceased depositor

    In order to avoid hardship to the survivor(s) / nominee of a deposit account, banks are advised to obtain appropriate agreement / authorization from the survivor(s) / nominee with regard to the treatment of pipeline flows in the name of the deceased account holder. In this regard, banks could consider adopting either of the following two approaches:

    The bank could be authorized by the survivor(s) / nominee of a deceased account holder to open an account styled as ‘Estate of Shri ________________, the Deceased’ where all the pipeline flows in the name of the deceased account holder could be allowed to be credited, provided no withdrawals are made.

    OR

    The bank could be authorized by the survivor(s) / nominee to return the pipeline flows to the remitter with the remark ‘Account holder deceased’ and to intimate the survivor(s) / nominee accordingly. The survivor(s) / nominee / legal heir(s) could then approach the remitter to effect payment through a negotiable instrument.

    5. Access to the safe deposit lockers / safe custody articles

    For dealing with the requests from the nominee(s) of the deceased locker-hirer / depositors of the safe-custody articles (where such a nomination had been made) or by the survivor(s) of the deceased (where the locker / safe custody article was accessible under the survivorship clause), for access to the contents of the locker / safe custody article on the death of a locker hirer / depositor of the article, the banks are advised to adopt generally the foregoing approach, mutatis mutandis, as indicated for the deposit accounts. Detailed guidelines in this regard are, however, being issued separately.

    6. Time limit for settlement of claims

    Banks are advised to settle the claims in respect of deceased depositors and release payments to survivor(s) / nominee(s) within a period not exceeding 15 days from the date of receipt of the claim subject to the production of proof of death of the depositor and suitable identification of the claim(s), to the bank’s satisfaction.

    Banks should report to the Board, at appropriate intervals, on an ongoing basis, the details of the number of claims received pertaining to deceased depositors / locker-hirers / depositors of safe custody article accounts and those pending beyond the stipulated period, giving reasons therefor.

    7. Provisions of the Banking Regulation Act, 1949

    In this connection, attention is also invited to the provisions of Sections 45ZA to 45ZF of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies).

    8. Simplified operational systems / procedures

    NABARD has been advised to formulate a Model Operational Procedure (MOP) for settlement of claims of the deceased constituents, under various circumstances, consistent with the instructions contained in this circular, for adoption by the banks. The banks are, therefore, advised to undertake a comprehensive review of their extant systems and procedures relating to settlement of claims of their deceased constituents (i.e., depositors / locker-hirers / depositors of safe-custody articles) with a view to evolving a simplified policy / procedures for the purpose, with the approval of their Board, taking into account the applicable statutory provisions, foregoing instructions as also the MOP to be formulated by the NABARD.

    9. Customer Guidance and Publicity

    Banks are advised to give wide publicity and provide guidance to deposit account holders on the benefits of the nomination facility and the survivorship clause. Illustratively, it should be highlighted in the publicity material that in the event of the death of one of the joint account holders, the right to the deposit proceeds does not automatically devolve on the surviving joint deposit account holder, unless there is a survivorship clause.

    10. These instructions should be viewed as very critical element for bringing about significant improvement in the quality of customer service provided to survivor(s) / nominee(s) of deceased depositors.

    11. Please acknowledge receipt to our concerned Regional Office.

    Yours faithfully,

    (C.S.Murthy)
    Chief General Manager-in-Charge

    1. Yes, banks do not ask for succession certificate is nomination is present !

  109. Arvind says:

    Husband and wife both have Joint Account; they want their Daughter as nominee where Daughter is minor.
    1) Who should be Guardian?
    2) Can I have my Brother in Law as her Guardian?
    3) I think Account Holders (Mother and Father) should not be Guardian if their nominee (Daughter) is minor?

    1. Yes your daughter can be nominee , but the guardian has to be some one more trusted like your father or the grandparents of the child or may be even some trusted friend. The point is guardian has to be someone who you think will not trouble her for money later. I think the better thing would then be to make the account as joint holding with 3 people . Joint account can be with 3 people also .

  110. R. Ramakrishnan says:

    Dear Manish,

    I have some questions :

    1) Who will be the legal heir for a married man for his own earning.
    2) Who will be the legal heir for a married woman for her own earning.

    While I got to understand the difference between ‘nomination’ and ‘will’ from your blog, I request you to answer the above questions, considering the fact that :

    a) the man and the woman are husband and wife,
    b) they do not have children,
    c) both made nomination for each other in the bank accounts,
    d) and they have not made any will.

    Thanks.

    Ramakrishnan

    1. For this case which you have given with points a-d

      1) For men – the legal heir would be Wife and Mother
      2) For Women – Husband

      Manish

      1. R. Ramakrishnan says:

        Thanks.

  111. Hitesh Mirchandani says:

    I was going through various articles over google and trying to figure out the difference between a WILL and a NOMINATION. And after going through your entire article as well as the comments you have answered, I come to a clear conclusion. I am a student(not law) but I lately entered a scene where I happen to be a legal heir towards a certain property and I hold a Will(unregistered) for the same. The property belongs to my late father and my uncles happen to be the nominees. They were nominated before my father got married and till date the nominations haven’t changed. My question to this scene is, would being a legal heir be a good enough proof for a smooth transfer of share certificates? Also would an unregistered will(but attested) do the job?

    Also I would be really great full if you could post the link of some of your other similar articles in the message.

    Thanking you,
    Hitesh

    1. Hitesh

      You will be the valid legal heir bypassing nominee’s . But there are two issues

      1. Nominee’s . As you are not the nominee, it would be a little longer for you to get hold of property and in absense of the WILL , and that too unregistered WILL , the onus on you is to prove if its a correct will , you will have to move to court and bring something called as “Probate” , which is a document “certifying” that you are the valid legal heir and the WILL is correct. See a lawyer for this

      2. Registering a WILL takes not more than few hundred or thousand, but if a WILl is not registered, you will now have to shell out a % of the house value (typically 1-2% , but 4% in delhi) , to get the probate and completing all the formality , so if house value is 50 lacs, be ready to shell out atleast 50k to 1 lac . This is because your father did not register it .

      Manish

  112. Manoj Kumar says:

    Dear Sir,

    If wife is a working women and have a bank account and nominee ‘s her father before marriage, After marriage if she have not change her nominee then who is real heir husband or her father for deposit amount ?

    1. It will be husband , but better she changes the nominee, because the unneccessary confusion and fights will arise !

  113. js says:

    dear sir,
    mummy ki accidental death hone par LIC & FD me nominee agar ek beta ho jabki dusra beta aur pati bhi jinda ho to kya nomination chaalenge kiya ja sakta hai. agar yes to amount reseving ke kitne din bad tak.
    thank u

    1. Obviosuly .. Nominee is not the final owner , he has to give it to final legal heirs !

  114. Rajesh says:

    Dear Manish,

    Thank you very much for detail article.you are doing very good job.

    I have one query in mind,In case insurer and moninee both die at same time in accident or some what .
    in such case insurance can be claimed by some other family member or not.

    if not how to address this , because your most loved is most of time with you only.

    1. Rajesh

      If nominee dies, then its as good as NO NOMINEE . In that case the wealth will be divided as per WILL or Hindu Succession Laws

  115. mahesh says:

    who can sign as witness for the minor nominee ..? i mean family member can sign as witness.?

    1. Mahesh

      Yes, they can sign for minor nominee ..

  116. Vikash Kumar says:

    Manish, thanks for a prompt reply and a very clear explanation.

    Now, I have some more questions based on your input

    I checked with the Post Master (Bhabhua, Bihar) and he said that every post office has its own rule. If I quote “if tcase nominee is a dog, then also I will give the money to nominee and not to legal heirs”.
    Also once the money goes to nominee account, I’m not sure how to get it from him.

    So can you please suggest

    1. Any website/ document/ legal article/ Law reference which I can produce to convince the Post Master that money should go to legal heirs.

    2. In case the Post Master doesn’t agrees then what is the option I am left with ? Whom should I raise it further ?I am based out of Kolkatta and it will be difficult for me to do frequent trips to Bhabhua.

    3. Can you please suggest me any lawer/ forum/social organisation who can help me with this . Can I raise this to any consumer court or any place which is investor friendly. I don’t want a legal case which goes on for years.

    PS: this query is for an old lady, whose husband has left 8 lakh in Post office senior citizen account and nominated a young relative who was suppose to take care of the lady (but now he has turned greedy).

    any pointner will be very helpful
    thanks
    Vikash

    1. Vikash

      1. The post master probably does not understand the rules himself then , its true that money will be trasferred to nominee account if he arrives with his details and a death certificate , but legal heirs have the legal right to consume it at the end.

      2. You should file an RTI for this and ask these questions and once you get a RTI reply , you should show it to the post master, this is the most efficient and without expenses.

      3. NO idea on this

      1. Vikash says:

        Thanks Manish for your reply.

        I have decided to go for RTI … I see we can file RTI via website RTINation.com. I am going to use that for ease.

        In your reply you said ” its true that money will be trasferred to nominee account if he arrives with his details and a death certificate , but legal heirs have the legal right to consume it at the end”

        I’m not sure how to enforce this. I mean once the money comes to nominee account, how can we enforce to get the money to the legal heirs. What happens if the nominee withdraws the money or moves it to some other account.

        please suggest

        thanks
        Vikash

        1. Vikash

          You cant do it , so the better thing is to have your legal heirs only as nominee , why to have a nominee whom you dont want to give money ! 🙂

  117. Vikash says:

    Hi Manish

    Well researched article. Keep up the good work.

    As per the article,
    As per a famous case, A Bench of Justices Aftab Alam and R M Lodha in an order said that the money lying deposited in the account of the original depositor should be distributed among the claimants in accordance with the Succession Act of the respective community and the nominee cannot claim any absolute right over it.

    Is this same true for MIS and Senior citizen deposite done in Post Office ? The article doesn’t talks anything about Post office critiera, are they suppose to follow same rule as banks ?

    thanks
    Vikash

    1. Vikash

      Yes its true for everything except the demat accounts . So nominee has no legal right to claim it !

  118. Nikhul Chauhan says:

    Hallo
    I have a Question.
    A person holds a LIC and he paid all the installments.
    If the person insured has died but the nominee is missing then who is entitled to claim the money & what is the procedure.

    1. Nikhul

      Not having a nominee is a big blunder , now legal heirs will have to claim the money, but now its not easy , you need to show death certificate , succession certificate from court (if will is missing) , Probate from court (if will is present) .

      Manish

  119. saibal says:

    I wanted to know that my father had a property and after the death of my father my sister ,brother in law & mother hasd sold off the property without my consent.I was fully unawre. My father did not leave back any will. Am I entitled to the remittance received from the sale of the property?

    1. Yes , you are liable for 1/3rd share and you should get it from the sale proceeds !

  120. anil chokshi says:

    I am indian canadian(canadian citizen).I hold immovable property in india.Now i want to sell that one.When i purchased it that time i was indian c.zen.The will i have to make it in india or canada?Can i make a trust of my whelth?

    1. This should be discussed with a local lawyer

  121. sumit says:

    sir i have a que ……..my grand father had made a will giving his succession rights to his two sons in which he has mentioned his fixed deposits too but my uncle afterwards made his wife as a nominee to the fixed deposits .my grandfather has died now and my uncle has withdrawn all the money from the accounts so sir can i challenge him in the court for my share in the fixed deposits as mentioned in the will please do guide me …..regards

    1. Sumit

      Yes .. definately you can .. Nominee has nothign to do with it .. as the WILL clearly says that the FD has to be divided between all , then you also have a share in that, you can challange this in court and you will get it , may be it takes some time .. meet a good lawyer and get it done !

  122. R Nandy says:

    Dear Manish,
    I just want to inform something regarding nomination for PPF accounts as I feel this will be usefull for others.
    I have a PPF account which was opened in 2003.I had diligiently completed all formalities like nomination while opening the account.I was issued with a manual entry passbook then.Recently I went to SBI to get a printed passbook.I was issued a printed passbook but there was no nomination Registration number in the passbook.On enquiring,I was again given a new nomination form as SBI had lost the nomination information while doing computerisation,so the details were fed again after I filled the new nominaton from.The nomination registrtion number was then updated in the printed passbook.I guess this is a general problem and must have happened to most old PPF account holders.So,people with old PPF accounts in SBI should get their nominations verified again.

    1. Thanks for this info Nandy .. A lot of issue can happen if nomination is missing !

  123. v.m.singh says:

    Dear sir I have a question regarding payment by nominee to legal heirs of the depositors.

    1.How should nominee make payment to legal heirs of the depositors by cash or account payee cheque ?
    2. Whether any receipt or acknowledgement to be taken from the legal heirs of the depositors after making the payment ?

    1. I dont think there is any mandate like this .. the payment can be done any way . I think the control of the whole property can be transferred from nominee to the legal heir

  124. lakshmi says:

    Dear Concern,

    Please clarify on below.

    My friend is a divorcee and her husband is already married to somebody else and the kids are also with him. She is single and wants to open a PPF account. I have take care of her after her divorce and now she is working. She wants to nominate me as her nominee for PPF account as she does not have anybody else. Can i become the nominee and will i get the money after he death.Please advice.

    1. Lakshmi

      Nominee can just get the money from the company/bank , finally it will go to legal heir , so in your friend case , does she have any relative or children etc, if you want that the money should come back to you after her death, she will have to write a WILL and say that her money should be handed over to you fianlly .

  125. Viswanath says:

    Hi Manish,
    I am little late in reading the PPF article and plan to open one on my name later in 2 yr intravals for wife and child as recommended.

    The PPF nominee issue and 1 lakh slab, really bothered me as , I was hoping to make this me Debt instument for retirement and child marriage , I have a Dream plan birla for education.

    I want to clarify, in case of no nominee the below is mentioned in SB site

    https://www.statebankoftravancore.com/ppf.htm
    “(20) If the subscriber dies and there is no nomination at the time of death, the balance in the account, if it is upto one lakh, will be paid by the Accounts Office to the legal heirs of the deceased on receipt of application in Form G supported with necessary documents without the production of succession certificate. If the balance is more than one lakh, the production of Succession certificate will be necessary.”

    I will make sure Nominee is there , just want to confirm.

    Also incase I open with SBI Hyderabad, can the account be trasfered to Coimbatore SBI with the same account name number , nominations.. etc ?

    Thanks you, and let us know if your book is available in Flipkart.. Congrads on the Book.

  126. Girish says:

    Hi Manish,

    Although I have thanked you earlier for the informative post, I want to thank you again on behalf of my colleagues (Who wanted me to) to whom I had forwarded the article link. They all were totally unaware of such a thing could happen and thanked me for sending such an important peice of information. Do keep writing such articles as often as you can so that many more people can benefit from them.

    1. Girish

      Thanks a lot 🙂 . Say my Hello to all your friends .. they can directly mail me 🙂 . Also do they read jagoinvestor.com regularly or not ?

      Manish

  127. Dilip Kumar says:

    Hi Manish,
    Thanks for nice note. It clearifies a lot’s of doubts and myths.
    One question. How will works ?? Is it possible to make one single will which cover all aspects/assets ?? or do we need to make seperate will for each investments ??

    1. Dilip

      Your WILL is a final thing and you only need to make one will .. see the Will article : https://www.jagoinvestor.com/2010/11/how-to-make-a-will-in-india-and-its-importance.html

  128. S D Kaushik says:

    explained very nicely all the basics … thanks a lot

    1. SD Kaushik

      thanks a lot .. what was the biggest lesson for you in this article ?

  129. M. Joseph says:

    Hi Manish,
    As per my knowledge,in the case of nomination in Shares, the Nomination supersedes the Will, as per the companies Act. Please check.

    1. M Joseph

      yes , thats true and its mentioned in the article itself .. looks like you missed out on that

      Manish

  130. jinima says:

    hi manish,my bro-in-law died in an accident.before his marraige he made two L.I.C policies.one nominee is his father,other nominee is his brother.who will get the money?nominees or my sister?they don’t have any child…

    1. Jinima

      Nominee is just to recieve the money , Your sister is the legal heir incase your brother and law have not made any will . So your sister can contest for the amount coming from the insurance companies

      manish

  131. I think the PPF restriction to 1 lakh is only for getting the money without producing legal documents, i.e. producing just death certificate + legal heir certificate + affidavit + indemnity, etc. instead of a succession certificate or probate of will issued by a court.

    In all cases there are such limits and just that PPF and shares live in an age-old era with small limits. For example, we are in the process of getting ~Rs.2.5 lakhs from SBI (taking time as (a) it is outstation and (b) I was too busy to do things quickly :-p) who lost the nomination record on my late dad’s account.

    1. Yes 1 lakh is in case their is no succession certificates

      Manish

  132. Judy says:

    I found this article very very informative. All these years, I was under the impression that the money would go to the Nominee in case of the holder’s death. I was shocked when I went through this article. Am happy I stumbled over this article. Thank You Sir.

    1. Judy

      thanks for the appreciation 🙂 . I am happy I was able to add something in your financial life. I am happy . Spread the word ,mail the article (with link) to all your friends and everyone you know

      Manish

    2. GREAT .. keep reading

  133. Pradeep says:

    Hi Manish

    If i make contibutions to my fathers PPF account, i will be the nominee. But i read that sucession certificate is required to claim the amount in event of his death if the maturity amount is more than 1 lakh. Cant i have a will for this ppf account stating that the proceeds of the ppf account after his death should be solely mine. Is the sucession certificate a must if i have a will.

    1. pradeep

      no , will has to be supreme . Only if there is no will , then the nominee has to produce the succession certificate , can u also ask this question on forum to get more view . Jagoinvestor.com/forum

      manish

  134. Chaitanya says:

    wow… great one. never knew that nominee means wat u said above. awesome work Manish, thank you!

    1. Chaitanya

      Yea .. Lot of people do not know this 🙂 . Are you going to give your documents a look 🙂 now

  135. Suraj says:

    Good informative article…
    M, F and K
    in case of PPF a/c in name of K and gardian as F (and no nominee becuse of gardian)
    what would happen in case if something happens to K/F ?

    1. Suraj

      Your question is not clear to me .

      Manish

      1. Suraj says:

        Question is…
        for example; there is PPF a/c in name of minor Kid, and Male is the gardian of Kid (so nomination is not filled)…
        on death of Male, what would happend to PPF a/c ? will it continue and Female (wife of Male) can contribute till Kid becomes major? or how to handle this situation.
        Hope question is clear now.

        1. Suraj

          Nothing should happens on the death of the male , as the account is n minor , so wife should be able to contribute

          Manish

  136. Hiral says:

    Gr8 article…

    in bank a/c, FDs, mutual funds — nominee name is exclusively printed in passbooks.
    How to check nominee in PPF a/c?
    What is procedure to mention nominee in real estate?
    What happens in case of joint a/c between B & S sibling and no B’s death does B’s nominee get something?

    Thank you very much.

    1. Hiral

      I guess form E is used for that ,

      Not sure in case of real estate, but should be somewhere while you do the registration . for other questions , ask at https://www.jagoinvestor.com/forum/

      Manish

  137. bharat shah says:

    further it may be added that the first person would die earlier, it should go to second choice person automatically.

  138. bharat shah says:

    i think, one should be careful while drafting the will for the first (and better be last!) time, so it is not required to change it frequenly. as such, for most persons, will could be in favour of some loved ones, prioritywise. mostly spouse could be first one, then children. so if the asset is not huge, it is better to make will in favour of one, or 2-3 ( dividing %age of the assets to each one) , for all the assets-movable and immovable, existing and what may be added in future, without specifying indetails for every thing, out of one’s earned/ legally inheritted money. i think that would be better.

    1. Yea . thats a good point 🙂

      Manish

  139. Mitr Singh says:

    Hi Manish,

    If I make a WILL for Person “X” for Everything in Yr. 2010 and then Buy something (XXX) in yr 2011 and nominee Person “Y” for it and Do not change the WILL. In that case who will get “XXX” Person “X” or “Y”

    1. MItr

      Its not advisable to write something like “Person X should get everything” , you should mention all what you have as a list of items 🙂 . However in your case , person X will get everything , not ‘Y’ , note that who gets the money is decided by either WILL or succession laws , nominee does not have any role in getting money

      Manish

  140. Mitr Singh says:

    Dear Manish,

    Thanks for the wonderful article.

    I have few queries :
    1. Suppose i have few accounts & shares, Mutual fund and Property and Every assest have different nominees. Even i forgot the nominees, In that case if i will make a will for a particular person then who will be entitled for my hard earn money after me.
    2. If i make a will in 2010 & then open a new account or buy some mf in 2011 & make nominee some other one. In this case who will get money.

    Best Regards
    Mitr Singh

    1. Mitr

      1. Will is super , anything which is written in WILL will be honoured .

      2. You will have to update the WILL if you buy something else later .

      manish

  141. Irshad says:

    Thank You 🙂

  142. Pingback: October Monthly Digest of my favourite articles | The Wealth Wisher
  143. Sharmila says:

    Thank you for this information. never knew the real value of assigning a nominee and having a will until now.
    waiting for your article on will.

    1. Sharmila

      the article on WILL will be coming in some weeks , not an immediate one , but stay tuned

    2. ruchir agarwal says:

      I am also studying all this and confused.My bankers told me that the nominee superceeds the will.Now whom to believe.
      Also banks are reluctant to nominate if its a joint account.

      1. Ruchir

        There is no confusion , Nominee does not supercede the WILL in case of Banking accounts. They are wrong !

        Also regarding joint account, ask them why are not allowing to have a nominee .

        Manish

  144. sathya says:

    Man ish, you are the best, i have been watching your blog for a while now. I have never seen a guy who blog, responds to each reply till date. Its a record.

    Please do continue.

    Im ready to share your will, if you will.

    1. Sathya

      🙂 . Thanks for your appreciation .. Spend some more time on the blog and contribute your knowledge also to all ..

      Manish

  145. neet says:

    Hi Manish,
    If one holds/ invests in stocks and mutual funds electronically , how does one nominate a nominee?

    1. Neet

      When you opened your demat account , you had to assign a nominee in the form , incase you have not done that till now, you can change it now .

      Manish

  146. Mani says:

    Hi Manish,

    This is the first time I’m commenting on this portal…. Since when I got to know about this site, I’m a regular reader of Jagoinvestor and with every article that you post, I’m gaining a lot in terms of knowledge and investment options….

    Coming to this article, I just thought that nomination is equivalent to will, but thank you for enlightening us so beautifully in this topic……

    Keep up the good work.

    Mani

    1. Mani

      Good to hear that you learnt this point from this portal 🙂 . Spread the knowledge

      Manish

  147. bharat shah says:

    @manish
    the importance of will is for estate planning also, i think. through the will, the person could easily divide his estate (wealth) among his family members so that the income from it could be divided and overall income tax liability year after year could be minimised.

    1. Bharat

      Yes .. mainly WILL importance comes into play from Estate planning point only 🙂

      Manish

  148. susanta panigrahi says:

    My age is 32.Investment horizon 10 years.MY present portfolio is as follows:

    1.HDFC top 200
    2.Reliance Regular savings Growth
    3. HDFC Balance Fund

    Please suggest whether to include SBI CONTRA Fund or ICICI Prudential Discovery fund in the above portfolio.

    Susant

    1. Susanta

      Please ask this question on forum : https://www.jagoinvestor.com/forum/

      Manish

  149. Kishore Gountia says:

    Thanks. It is very informative.

    1. Kishore

      Good to hear that ..

      Manish

  150. Ashwin D says:

    ICICI FAQs page list something called as Assignment of a policy on behalf of someone. It says the rights assigned are true and cannot be challenged in courts. Any idea how this is different from nomination?

    1. Ashwin

      Dont get confused with all these jargon , its same as “ownership” , Assigment of policy is same as trasferring it to legal heirs .

      Manish

      1. Sundar says:

        There is a difference between Nomination and Assignment. Nominee will get the full money. But the Assignee will only get that part of amount which the deceased person owes that organisation. Remaining will be given to Nominee. For example Student Loan requires in most cases Assignment. The Bank will only get what amount is due as on the date of settlement of the deceased Student’s account.

        1. Sundar

          I didnt knew that , thanks for clarifying 🙂

          1. sty says:

            Does this mean: If policy holder assigns a policy to some person (not an institution) no WILL / Personal Succession Law can challange it ?

            1. I think in policies there is an option where you can specify that you want it to go a person even if there is a WILL . Not sure exactly

  151. dr kishan says:

    hi manish
    thanks for opening our eyes once again. really an extremely important poinrt we all tend to misunderstand
    any way i have 1 doubt. in the last judgment example “Section 45ZA(2)(Banking Regulation Act)” it was quoted that nominee has the rightsof depositor but is not the owner of the money. i dont understand that is “having rights of the money” and “owning the money” different. in what way are they different. is it just that the nominee is just a caretaker of money waiting for tranfering it to the legal heirs. if yes then how does he have rights on the money. can any legal expert help in this manner

    dr kishan

    1. Dr Kishan

      I am not very sure , but It might mean that He has all the powers which a depositor of the account has from operational point of view,except the withdrawal power .

      So he does not have right to use the money

      Manish

  152. KM says:

    BTW whats the logic of giving out just 1 Lakh in case of PPF account?

    KM

    1. KM

      No logic , thas the rule 🙂

    2. sty says:

      Max 1 lac will be paid to PPF nominee, for balance amount you have to get Probate/Succession Cert from courts.

      1. sty says:

        Sorry for above post: correction:

        Max 1 lac will be paid to legal heir if no nomination is there in PPF, for balance amount legal heir have to get Probate/Succession Cert from courts.

  153. KM says:

    Hi Manish,

    Good one. Nomination related to shares was a new information for me.Thank you very much. Appreciate the hard work you do before writing any post.

    Ketan

  154. Dhiraj Bahroos says:

    This is my second comment, once again thanks for the article!
    I would like to go little outside the scope of this article, I hope you would not mind it.On further assessment, my mind is alarming me in the direction of wealth tax implications for inherited properties. I have couple of questions in this regard:
    i) Let us say that I already own a residential property in Mumbai(self-financed) and now I inherit another residental property (considering that the “will” of the deceased was very much existing and executed).This now puts the count of number of residental properties I own to “2”. Is it correct that the second property would come under wealth tax juridiction? I guess(read somewhere) that one needs to pay weath tax if the net worth of the weath is > 15L, is it? Also, is it true that every year the net worth has to be recalculated with the inflatory adjustments?
    ii) Is there a limit on how many properrties can I inherit?

    1. Dhiraj

      Not sure on this . Better to ask on Forum : https://www.jagoinvestor.com/forum/

      Manish

  155. Arudra Kumar says:

    Thanks for the article Manish. I never knew about all this earlier. I need to check all my investments now for the nominee details.

    Few quick questions. Is there any procedure to make a Will. Should we make it only through a lawyer. At what age we should consider to make a Will? Is there any template or format we should be following for making the Will?
    Sorry for my ignorance on this part, but I do not know answers for any of these questions and I have never seen a Will.

    Regards,
    Arudra.

    1. Arudra

      I will write an article on that soon , however you should go ahead and make one . You can make it in any age , earliar the better ..Take help of a lawyer , its always a better option

      Manish

  156. rahul says:

    Please also mention case of nominee/nomination incase of land/plot/flat purchase.
    To my utter surprise, when I went to check a scheme of big builders like Unitech, there paper work related to flat ownership had no clause under Terms and Conditions about Nominee. Also the mba graduate at their own office selling us the scheme knew anything about it.

    1. Rahul

      I have not touched real estate in this article as I myself didnt find much about it .. Will get more info on this and write in future

      Manish

  157. avs says:

    Excellent article, manish.
    How about the next article on succeession planning through discretionary & non-discretionary trusts & their taxability?

    1. avs

      Its on the way .. not very soon , but yea , I will write about it as part of this article in coming weeks/months .

      Manish

  158. Jayaprakash Kanreddy says:

    Hats off to you Manish, I’ve been reading articles about personal finance but no one covered about this point. Such a big black box in this part. I think I’ve review all my investments and recheck my nominee information as well as get ready for making a will.

    Thanks a lot, keep it up.

    Jayaprakash

    1. Jayaprakash

      Great to hear that … do it asap .

      Manish

  159. Manish Bhatia says:

    Very Informative Article! We generally leave it at declaring a nominee with a wishful thinking that it will be legally theirs when you are not around… PPF nomination is an eye opener… I never knew this!
    Thanks Manish!

    1. Manish

      yea . This happens when you take things for granted . For a small fee we can get good counselling from lawyers or by spending some time, we can read all this, but we dont spend time on this and leave a bad experience for our loved one’s . What do you say ?

      Are you making a will ?

      Manish

      1. Manish Bhatia says:

        Of course… I would recheck all my investments & yes a will is coming too!
        Thx
        Manish

        1. Manish

          Go for it , however you can wait for couple of weeks incase you can as I will write a post soon on WILL

          Manish

          1. Sundar says:

            Just for your information which I learnt from my friend:
            Simplest WILL has only two word “ALL YOURS”.
            Write in a piece of paper the beneficiary details and get it signed by two witness, one of them preferably a Doctor. This is all is required if you want to make a valid will it to only one person.

            1. Sundar

              Yes .. thats true .. one can make his WILL without any legal support , but its always advised to make it through a lawyer 🙂

              Why one witness should be a Doctor ?

              Manish

            2. Sundar says:

              Because there have been cases where Will has been challenged stating that it was made under “unsound mind”. To Avoid that, if it is signed by a Doctor, then the Authorities will assume that person who made will was in sound mind at the time of making the Will. That will cut lot of nonsense.

            3. Sundar

              thats a great point and logical one 🙂 . thanks

  160. caribou says:

    This article really seems to be one of the most important and informative article. Now I know that it was important to make a will through legal heir. Good article. Three cheers for Manish.

    1. Caribou

      Thansk . “Make a will through legal heir” what does that mean ? I guess you mean “Lawyer” 🙂

      Manish

  161. sachin says:

    gr8 post, very informative, i had no idea about this before…thanks a lot Manish

    -Sachin

    1. Sachin

      Great to hear that you learnt a lot from the article , forward it to your friends also 🙂

      Manish

  162. vishal agrawal says:

    Dear Manish,

    Thanks for the wonderful post. I would like to know the taxation criteria in case of maturity on life insurance policy and in case of death of the life insured. If you have already written an article ( I think you have) then plz give methwe link.

    Regards,
    VSA

    1. Vishal

      The money one’s get from Life Insurance after death , is not Taxable . Its purely 100% yours .

      Manish

  163. RM Krishnan says:

    Needless to say that everyone should know and must read this article.
    I have distributed this email to all my friends.

    For NRIs, would you like to add any other points?

    Regards,

    Krishnan

    1. Krishnan

      In case of NRI’s the issue is repatriablity sometimes and differ from one instrument to another , like check this : https://www.icicibank.com/Personal-Banking/demat/guidance-pro-tran-shares.html#a2

      Manish

  164. Amit Mathure says:

    Thank You for such a good article

    1. Amit

      Welcome , are you making your WILL now ? I will write an article on it soon . Any expectations ?

      manish

  165. Sud says:

    Hi Manish, quite a wonderful article you wrote about!
    I have a query, for which I think most of us is having after reading this article of yours. You wrote in your article-
    “Also note that you cannot nominate anyone if you open an account for a minor in PPF Account”
    I am going to open a PPF account for my 8 months old son. As you said, you cant nominate anyone in it. So is it advisable to open the PPF account in my name and deposit the money regularly, or open the account in my son’s name without nomination?
    Please Clarify 🙂

    1. Sud

      Wondering what benefit it gives to you by openeing it on your child’s name ? what additional benefit it has ?

      You cant get additional tax benefit , you can deposit more than you regular 70k , incase its in his name or in your name , it can eventually go on his name using WILL .

      So better open on your name only and make him the final owner for that through WILL .

      Manish

      1. bharat shah says:

        though it may not be directly related to the subject , i understand, expert advises ppf accounts in name of minor son/daughter , and i think, not earning spouse, if your funds permit, for sake of estate planning. as per provisions , tne income on such investment though clubbed with the donor, but as such, it is tax free, so tax free income (of course the investment a/m may not be deducyible under overall limit of 1lacs under 80c). moreover the corpous in the account belongs to son/daughter on getting major, whereas the income on income would be considered to spouse, so it would not be clubbed with the donor, and that a/m would be more than the contribution and the one time interest on the contribution. so spouse would have separate estate by such planning. of course , this may be better for wealthy , as i think.

        1. Bharat

          Yes makes sense

          Manish

          1. Sud says:

            Hello Bharat,
            I am sorry, I dint quite understand what you are trying to clarify 🙁

            1. bharat shah says:

              @sud
              i like to state that if your income is much more year and year, and you have trust, love to your family , it is also prudent to have more than one ppf a/c, separate for your non earning spouse, and minor children , paying yearly within set limit(i think rs.70000/-for every account) in each of account after first yours. in such accounts , interest income is tax free. moreover, except first year interest on amount you pay, subsequent interest incomes would be wealth of your spouse/child, as the case may be, would be your spouse/child’s wealth. moreover , once your child/ren get/s major, all the a/m in the account would be his/their own. this is the one way of estate planning for somewhat wealthy, and trusting too!

  166. srg says:

    This is a very good article. I know someone close to me who had to face problems at every level because the breadwinner died in an accident. When there are no nominees, Some banks accept legal heir certificate and indemnity bonds and surety letters to transferr assets to legal heirs, while some insist on succession certificate

    1. Srg

      That was new information and some level of confirmation on how important is having nominee name

      ‘Thanks for this .

      Manish

  167. Anbusivam says:

    Great deal of information on the nomination thing. It’s indeed a wonderful article Manish.

    1. srg says:

      Hi nice article,

      Had personal experience when someone close to me lost her father in an accident. As theer were no will, there was problem at every step. In the absence of nominees some banks accept indemnity bond and surety certificate, while others insist for succession certificate

      1. Srg

        Good to hear that info from you . Nice addition

        Manish

    2. Anbusivam

      thanks 🙂 . Are you on your way to create a will ?

      manish

  168. Sundar says:

    Further please note especially in case of land or house property, Society will not transfer the flat without probate and tax paid certificate. Many times prospective buyer will not buy a flat or land if holding is not clear and if the property had not been clearly transferred and if there are disputes between nominees and legal heirs. Flat may still stay in Dead Person’s name till their heirs and nominees settle their disputes etc. Till then the flat may be used by Nominees or any other person. But Society will not transfer the flat to Prospective buyer till the process of probate is settled first. Hence such property cannot be sold so easily. Please proceed with great care in this matter.

    1. Gaurav Bajaj says:

      Thanks for this additional info. That means one should have nominees for Property too ? What if I haven’t declared nominee for my property but created Will having heirs name?

      1. Sundar says:

        I am not a Lawyer but roughly what I know is as follows:
        Even if you do not have nominee, the immovable property can be used by anybody. But the title will be passed only to legal heir which is governed by will and succession certificate. Better consult a lawyer in this matter. If you have named two or more in the Will, then clearly state who will get what. I know of one case in Malad, Mumbai, where despite the Will, Siblings were fighting for Bathroom and W.C and Kitchen etc. because it was not clearly mentioned in the Will.

        1. Gaurav Bajaj says:

          Thanks Sundar..

  169. Sundar says:

    Nice Article. May I add my bit.
    Legal heirs to get pocession of the property from the Nominees have to go through some legal process called probate. In Maharashtra it means the will have to be submitted to Registrar and will have to obtain probate. The Registrar may ask the claimants to put an advertisement in Newspaper to ensure that they will not be contested. They may even ask the witnesses who have signed the will to come to their office and sign documents. After all these and some court affidavits, The claimants have to pay the necessary tax to the state govt. which is hefty and based on property value. After Goverments takes it cut, then finally the probate order is given. Only then the legal heirs get their property. Please note the probate requirements differ from state to state. Hence even when making a will a Lawyer should be consulted.
    I know of fights between Nominees and Legal Heirs. Roadblocks put up by Goverment ( some times they ask for Registered Will etc.). So just writing a will is not the end of the story. Better consult a lawyer before drawing a will.

    1. Sundar

      Thanks for the info on “Probate” . It was some thing very important , is this concept of “probate” same in all the states ? Which law deals with it ?

      Manish

      1. Sundar says:

        I think it is Hindu Succession Act. I don’t know for sure. It is basically a State Subject and Not Central Subject. Basic concept is same but the tax and procedure/requirement for obtaining Succession Certificate may differ from State to State. This is just a rough information.

        1. Sundar

          Thanks for info , I will dig more info on this myself

          Manish

  170. Nikhil Kale says:

    Manish,

    Really informative article!! Didn’t know almost half the things you have mentioned! Always thought that nominee is the one to whom the funds go after the death of the policy/mutual fund holder. Good one!

    1. Nikhil

      Good to hear that you are also reading the blog , keep coming

      Manish

  171. Vijay Hegde says:

    Very informative article. Two things i need to do. Check PPF nomination and make a will.

    1. Vijay

      Also understand the succession laws , do you know how it works ? Apart from PPF and will , incase you have Real estate property , understand the importance of Probate

      Manish

  172. Gaurav Bajaj says:

    Wow!!! What an article!! Manish this is the first time I am commenting on any of the articles, even though I have started following up JagoInvestor for sometime now. First of all thanks for this very important article. I have a question:
    1. What happened if I don’t have nominee and I don’t have will too?
    Can the investment in different assets can be claimed by legal heir via cumbersome process as you mentioned in article?
    2. I am 26 years old and yet to be married. Some of my investments have my parents as nominee and remaining just don’t have nominees. So can I Add/change nominees for mutual funds, insurance, demat account etc, in future?

    1. Gaurav

      Great to get comment from you , kya yaar .. kabhi kabhi to comment marne ka 🙂 .

      1. If you dont have a will or nominee , your legal heirs will have to claim the money by producing the required documents like you death certificate etc , While its not recommended to leave nominee blank , its not that cumbersome as you have put in your comment 🙂 , however in PPF its important to have a nominee else only max 1 lac will be give to your nominee .

      2) Yes you can change it anytime

      While it might look funny to you , you should consider writing a will , where you mention how you want your money to be distributed ? You should for sure do it after marriage atleast .

      What are your thought ?

      Manish

      1. Gaurav Bajaj says:

        Thanks for very quick response Manish. Sure I think its very important to have will.

  173. Rakesh says:

    Manish,

    Wow, very very informative article. Quite an eye-opener. Had a different view about Nominee. So you mean to say a will is compulsory. What is the ideal age to do a will, once will made can it be changed? I think you should write an article about how to make a Will?

    Rakesh

    1. Rakesh

      Nice to hear that , I know its a common beleif , we start beleiving thigns the way they look like , I will come up with an article on Will making soon .

      Any feedback ?

      Manish

      1. Muthu Krishnan says:

        Hi manish,

        Kindly detail the process of adding/deleting names or investments/assets from the will as well, since assets/investments might change over time.

        How to keep the will updated?
        Thanks,
        Muthu.

        1. Muthu

          that article is comign soon ..

          Manish

  174. RAMESH DESAI says:

    I will think of making a WILL. Thanks for the informative article.

    1. Ramesh

      Are you planning to make a will yourself or involving a lawyer, its advised to go through lawyer .

      manish

      1. Sohil says:

        I guess your next article should be on making wills.

        Anyways personally i dont think lawyers are needed to make wills.

        Yes registering and notifying it will add as advantage.

        1. Sohil

          Not exactly next article , but yes , its on the way . What all clarifications you need in the article regarding will ?

          Manish

          1. Udaya says:

            Please include tips on how to make it a simple affair for the family to claim the ownership of the assets / money as in most situations the wife is financially semi-literate and also running around for money would be the last thing on her mind in that situation.

            1. Udaya

              This has to be taken care by WILL or nomination .. The family cant do anything if an asset is assigned to some one else through will .. the issues arises because the person who leaves the asset has not done proper estate planning .

              Also there should be some level of financial literacy given to women in family

              Manish

      2. RAMESH DESAI says:

        Yeah Manish, as per your advice I will make a will through Lawyer only. Thanks for your valueable advice.

        1. Ramesh

          yea .. incase you can wait for some time , the article on Will is on its way in couple of weeks ..

          Manish

  175. Dhiraj Bahroos says:

    Thanks Manish.This is an eye opener article. I always took nomination as a substitute for making will, but after reading this I realise the importance and need for making a will.Do you think that the mere definition of a “nominee” should be streamlined to mean one and only one thing across various types of investment bodies? I personally would like to see one consistent definition of “nominee” for any of Life Insurance, FDs, PPF, shares etc.
    I am sure after this article of yours some of the readers would start maing their wills(including me) :))

    1. Dhiraj

      “Nominee” is defined by each governing law , like Banking Act defines it in a different ways and companies act defines it in a different way , other than stocks , nominee meaning is same .

      Manish

  176. Adithya Uday says:

    Hi Manish

    Really informative article.
    But the PPF section is not clear.

    How come they can give just max 1 lakh for nominees for 10 Lakh ppf ?
    What will happen to remaining amount ?

    1. Adithya

      What clarity you need ? Its PPF rules that if nominee is not there , upto 1 lac will be paid to legal heirs .

      Manish

      1. Adithya Uday says:

        So just 10% of PPF amount will be paid to the legal heirs/ nominee and remaining 90% Govt. will keep/cannot be paid ..?

        1. bharat shah says:

          something seems missing here. i don’t know exact legal provision , dut i dare to guess, the balanced payment may be requiring a probate of the court as legal heirs. as i understand , the ppf money is protected from any attachment for the debt of the account holder. it is solely for survival of the account holder and his family. so this guess!

          1. Bharat

            can you give more info on probate ?

            Manish

            1. bharat shah says:

              @manish, by probate, i mean to say court’s order in the matter. what probablely in my mind , was as commented by anunaya.

            2. Bharat

              Thanks for clarifying 🙂

              Manish

        2. Adithya

          Its not 10% and 90% , its 1 lac and “Balance – 1 lacs” , so if you have 1.1 lacs in your account and not nominated anyone , your legal heirs will get 1 lac .

          manish

        3. Anunay says:

          Hi! no, government cannot keep the balance amount. Actually succession certificate from the court is required to pay off the the balance in PPF. In the absense of a will, legal heirs as well as spouse will be deemed as successors in the proportion decided by the court after considering the claims made by legal heirs.

          As far as nomination rule is concerned, the same is applicable to all financial assets, be it bank deposit, PF, gratuity, PPF.

          Since succession certificate might take long time in few financial assets a provision is made in which some interim lumpsum payment can be made to legal heirs.

          1. Anunay

            Thanks for the information , can you explain it in details

            Manish

    2. bharat shah says:

      as such my matters are simpler because no much wealth. however i made simple wills of mine, my wife , and my mother(whom i transfered some of my earned equity shares for sake of taxation at that time, and she is now no more in the world!) on simple papers without getting any regisration individually on my own way back in 1987, thanks to reading the book ‘wonderland of investment ‘ by shri a.n. shanbag. at that time the perception was different than now, when i asked a question about nomination in the forum. for your information, my age is 63 with no income ! i am just trying to manage /planning finance of my only son’s family with your blog as my passion( is it correct word? i do not know!) . again big thanks.

      1. Bharat

        Nice to know that you are working on your passion and through it making your financial life better .

        Manish

  177. rajivahuja says:

    Thanks 4 the information.I am sure like me many of my friends did not know this legal aspect ie the difference between a nominee and a legal heir.

    1. Rajiv

      Nice to know that. You might want to forward the article to them and also consider preparing a will

      Manish

    2. BKS AGRAWAL says:

      third party can be nominee in bank?and he can receive the amount ?
      Legal heirs of the deceased person can raise objection to the bank?

      1. BKS

        Nominee can be a 3rd party person , there will be no issue , but if you want him to be sole owner of it once you die , make sure you put a WILL and say that you want your money go to this 3rd party guy , else rules of succession law will be applied and your relatives will become and FINAL owner .

        Manish

  178. bharat shah says:

    thank you! really it is very informative article.

    1. Bharat

      Thanks , Did you knew about nominee thing earliar ? Are you planning to make a will now ?

      Manish

      1. sonal says:

        there is no option of choosing 2 persons for nomination. nomination can be made in favor of only 1 person

        1. There is . Which product are you talking about , a lot of things like Demat account, mutual funds etc have the facility to nominate more than 1 person!

          1. bhuwan says:

            Dear manish, I have a querry regarding nomination if you can answer.

            From Father’s bank account, if one nominee out of two dies how bank will clear the payment. It will be to the first alive nominee or else.

            1. Bhuwan

              the another nominee can contact bank and get the money

            2. Rajiv says:

              Does the bank gets rid of such accounts by disbursing them to mentioned nominee without consulting whether a legal heir exist and how is he/she going to distribute the amount to the legal heirs?

              I other words how does the bank proceed in disbursing the money?
              Who should approach the bank first?

            3. Hi Rajiv

              Bank does not need to consult with them . Nominee means the person who the account holder wanted to get the custody . In some cases, when the legal heirs themselves come much before and say thay they are the valid legal heirs . Then bank might want to check in detail . Or incase the bank themselves feel that the nominee is some 3rd party , then they might ask .

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