Property Ownership: Often many people lack knowledge about the difference between nominee and heir. In such a situation, let us tell you that the nominee is nominated for a specific purpose. At the same time, the heir is usually the person’s child or his wife.
Finance Minister Nirmala Sitharaman had recently asked banks to enter the name of the nominee in the accounts. Due to lack of nominee, crores of rupees are lying unclaimed with the banks. Actually, the money of the account holder who dies is transferred to the nominee. In such a situation, a question arises whether only the nominee is entitled to the property of the account holder after his death. If so, then who are the successors or heirs?
Today we will talk only about the difference between nominee and successor. A nominee is created for a specific purpose. This can be made by anyone. Actually, the heirs are the members of the dynasty or family, but if a person wishes, he can appoint a person outside the family as his successor as per his wish. The main difference between these two things is that if the name of the nominee is not registered, the bank cannot automatically declare anyone as the nominee. However, even if a person has not decided his successor, his children, wife or mother can inherit his property.
And what is the difference –
As we told that nominees are made for a specific purpose and apart from that thing, they do not get any right on any other property of a person. If a person makes someone the nominee of his bank account, then after his death that nominee will have the right only on the transactions or money of the bank account. The nominee will not have any rights on any other property. Succession is mentioned in the Hindu Succession Act 1956. All the property of the deceased is legally handed over to the heir.
More than one heir-
If there is no nominee, then the property is distributed equally among the heirs of the deceased account holder. Even if an heir is already decided, this money will be divided equally among all the heirs. There are two types of successors. Class 1 successors and Class 2 successors. Class 1 heirs include mother, widow, wife and son and daughter. Father is Class 2 successor category. The first right on a person’s property lies with his Class 1 heirs.
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