Nomination

Banking

Nomination designates who receives your financial assets upon death. Every bank account, mutual fund, insurance policy, and investment should have a nominee. Without it, family must go to court for succession certificate.

In detail

Nominee is a trustee, not necessarily the legal heir. They receive and hold the asset but must pass to legal heirs per inheritance law. Update nomination after marriage, divorce, or birth of children.

Real-life example

🇮🇳 India example

Arun dies without nominee on Rs 5L FD. Wife must go to court for succession certificate (6-24 months, Rs 50K-2L legal cost). With nominee: wife claims in 1-2 weeks.

Frequently asked questions

Is nominee same as legal heir? ▼

No. Nominee receives the asset (as trustee). Legal heirs inherit per succession law. For no disputes, align nomination and will.