APPOINT A NOMINEE FOR YOUR INVESTMENTS TODAY
· Many of us invest in deposits, shares and mutual funds without bothering to fill up the nomination details, as it is not mandatory while making an investment.
· However, this process simplifies the realization of proceeds in case of the original owner’s demise, especially if the investment is in one person's name.
· Check if there is an option of having a nominee when you make an investment, as its transfer becomes a lot simpler, even if he may not necessarily be the beneficiary.
· If nominees have been appointed, they can produce basic documents, such as death certificate, to access the funds of the original holder.
· The absence of a nominee may require more documentation, such as the probate of a will and certified list of legal heirs, before the investment can be transmitted or withdrawn.
· Nominees are deemed to hold the investment proceeds in a trust if it is disputed by legal heirs, pending a decision by the courts.
· Certain investments permit the nomination of a trust, religious or educational institutions.
· Others only permit individuals to be nominated.
· Most investment forms provide a space for selecting a nominee.
· If it is not filled up at the time of investing, other prescribed forms can be used later.
· Most investments allow more than one nominee and the percentage of share that each would be entitled to.
· The nomination form has to be filled up by all joint holders, irrespective of the mode of operation of the investment.
· Nominees can even have investments transferred in their names for redemption later.
· A nominee legally inherits the shares and mutual funds after the death of the original holder, even if the latter has named someone else in the will.
· If there is no nominee, delay in the transfer of assets such as shares and mutual funds could affect their valuations even if there is a will.
· Don’t let a nominee have access to an amount greater than what you would bequeath him.
Make a nomination today to ensure that your assets survive your death.