1. A nominee is the sole person who is actually authorized to withdraw the invested money - although he may not be the legal heir of the deceased - without avoidable hassles.
2. The basic concept of "nomination" is to get the invested amount withdrawn after death, and let it remain with someone whom you trust (who could be a non-relative too), and who will further help in the process of passing it to your legal heirs.
3. After withdrawal, the investment companies are out of the picture, and subsequent transactions are between the nominee and the legal heirs mentioned in the Will of the deceased, or as decided by the law of succession in its absence.
4. Eventually, therefore, the nominee will not be the sole beneficiary, or even not at all !
5. For example, a deceased may have nominated his wife in an investment, but left a Will in favour of his children with or without his wife, or even died intestate with legal heirs as per succession law..
6. A tip - synchronize the nominees in investments and legal heirs in the Will to avoid mistrust, cheating and litigation among the loved ones after demise.
7. For all investments except company bonds and stocks, nomination doesn't provide ownership.
8. The nominee will only be the custodian of the investment till it is given to its right beneficiaries.
2. The basic concept of "nomination" is to get the invested amount withdrawn after death, and let it remain with someone whom you trust (who could be a non-relative too), and who will further help in the process of passing it to your legal heirs.
3. After withdrawal, the investment companies are out of the picture, and subsequent transactions are between the nominee and the legal heirs mentioned in the Will of the deceased, or as decided by the law of succession in its absence.
4. Eventually, therefore, the nominee will not be the sole beneficiary, or even not at all !
5. For example, a deceased may have nominated his wife in an investment, but left a Will in favour of his children with or without his wife, or even died intestate with legal heirs as per succession law..
6. A tip - synchronize the nominees in investments and legal heirs in the Will to avoid mistrust, cheating and litigation among the loved ones after demise.
7. For all investments except company bonds and stocks, nomination doesn't provide ownership.
8. The nominee will only be the custodian of the investment till it is given to its right beneficiaries.