The nominee would have been the caretaker of only money or property. He doesn’t deserve your money. The nominee is required to hand over the money to your legal heir after you.
While opening a savings account in a bank, taking an insurance policy, investing in the stock market, investing in mutual funds or providing a nominee, a nominee has to be appointed.
In case of non-appointment of a nominee, all his hard work goes in vain if the investor dies in an accident. Therefore, when joining any scheme related to investment or savings, the nominee has to be announced.
The nominee would have been the caretaker of only money or property. He doesn’t deserve your money. The nominee is required to hand over the money to your legal heir after you. Nominee and legal heir can be same.
You can be your life partner, your children, parents, any other family member. You can also make a friend a nominee.
It is important that in the
absence of a nominee, it is difficult for the family members to get money in the event of the death of the investor or the owner of the property. In the absence of a nominee, one has to go through a lengthy legal process to acquire money or property. But after the death of the investor without any hassle due to the presence of the nominee, his property or savings can go to his family members.
Nominee Requirement Nominee is required in
- All financial matters. In an insurance policy, it is necessary to enter the name of the nominee at the time of opening the bank account and at the time of investment.
- You can have more than one nominee while taking insurance. You can nominate your mother or father, spouse or children as a nominee. By the way, it is right to make the legal heir a nominee only.
- You can also nominate a relative or friend while opening an account in the bank. Here the nominee is not necessarily a legal heir. In a joint account, the amount of the account is first given to the second holder and then to the nominee.
- It is important to make a nominee at the time of investing. Here you can nominate only one person. You can have more than one nominee in a mutual fund.
- You can also change the nominee. If the nominee is a minor, then it is necessary to appoint a guardian for him.
