1. Please remember that equity shares in a demat account will go to your nominee.
2. A Will does not
always ensure that the beneficiaries will get their dues, especially if the
person has made nominations.
3. When it comes to
shares in a demat account, it is the nominee in the account who inherits them,
not the person named in the Will, as the beneficiary has no right over the shares as per the provisions of the
Companies Act which override the
legality of a Will.
4. As per Section
109A of the Companies Act, the nominee legally inherits the shares after the
death of the original shareholder, even if the latter has named someone else in
the Will.
5. Therefore, it is
best to name the nominee in the Will as well so as to avoid confusion.
6. For mutual funds,
you can nominate a single person or open joint accounts with up to 3 people.
7. Upon the demise
of the single unit holder, the person who has been nominated can make claims
after providing relevant proof.
8. In case of joint
holders, if the first holder dies, the units will be transferred to the second
holder.
9. If one of the
joint holders dies, the investment will continue in the name of the survivor,
who can name a joint holder.
10. In case of demise of holder without
nomination, the legal heirs will have to file an application, along with
requisite documents, if they want to claim the investment.