An easy-to-browse ready reckoner for everyone, with lots of easy tips
ESSENTIAL TIPS ON JOINT HOLDING AND NOMINATION IN MUTUAL FUNDS
1. Nominations and joint holding are undoubtedly two of the simplest ways to identify beneficiaries for investments.
2. However, you should ensure that the beneficiary is someone whose needs could be taken care of in the future by the specific investment.
3. For instance, you can nominate (or jointly hold with) your kids, your parents and your wife separate MF investments for their use after you.
4. In this manner, you will ensure that the money earmarked for your dependents’ needs is available to them without any dispute.
5. Reviewing nominations/ joint holdings periodically ensures their relevance, and informing beneficiaries about them is a good practice.
6. If there is an option for more than one joint holder or multiple nominations, you must use it so that there is protection even if one nominee passes away.
7. If you also plan to write a Will, you must ensure that its provisions are in line with the nominations/joint holdings made, otherwise it could lead to disputes, as the Will would finally take precedence, if the nominees refuse to part with the amount to the actual legal heirs.
8. While you do not require the consent of earlier nominees for modifications/ cancellations, this could be tricky in case of joint holdings as their signatures would also be needed at that time.
9. You can even make multiple nominations and specify the percentage that each nominee would be entitled to.
10. As divorce is a real possibility in today's times, even if you marry with noble thoughts of merging your resources and joint ownership of assets, ensure that you have some independent accounts, saving avenues and assets.
11. While marriage works on trust, be prudent while making joint investments to avoid financial implications later in claiming your contribution.
12. Maintain records of intra-family transactions as evidence of contribution in assets to ensure you are not left high and dry after any ugly break-up.
3. For instance, you can nominate (or jointly hold with) your kids, your parents and your wife separate MF investments for their use after you.
4. In this manner, you will ensure that the money earmarked for your dependents’ needs is available to them without any dispute.
5. Reviewing nominations/ joint holdings periodically ensures their relevance, and informing beneficiaries about them is a good practice.
6. If there is an option for more than one joint holder or multiple nominations, you must use it so that there is protection even if one nominee passes away.
7. If you also plan to write a Will, you must ensure that its provisions are in line with the nominations/joint holdings made, otherwise it could lead to disputes, as the Will would finally take precedence, if the nominees refuse to part with the amount to the actual legal heirs.
8. While you do not require the consent of earlier nominees for modifications/ cancellations, this could be tricky in case of joint holdings as their signatures would also be needed at that time.
9. You can even make multiple nominations and specify the percentage that each nominee would be entitled to.
10. As divorce is a real possibility in today's times, even if you marry with noble thoughts of merging your resources and joint ownership of assets, ensure that you have some independent accounts, saving avenues and assets.
11. While marriage works on trust, be prudent while making joint investments to avoid financial implications later in claiming your contribution.
12. Maintain records of intra-family transactions as evidence of contribution in assets to ensure you are not left high and dry after any ugly break-up.