Nominee

A nominee is the person you name to receive the money in an account, policy or investment if you die. It lets the bank, fund or insurer release the money to a known person quickly, instead of your family having to prove their claim through a long legal process.

Why to add one everywhere

Without a nominee, money in your accounts can be frozen when you die, and your family may have to produce a succession certificate or a legal heir certificate to get it released, which takes months and money. A nominee skips that: the institution has a named person it can pay. Adding one to every bank account, deposit, mutual fund, demat account, insurance policy, EPF, PPF and NPS takes minutes and spares your family real grief later.

Nominee is not the owner

This is the part people get wrong. A nominee receives and holds the money, but does not automatically own it. Who finally owns it is decided by your will, or by succession law if there is no will. The nominee is a trustee for the rightful heirs, who are often, but not always, the same person. So a nominee speeds up access; it does not replace a will.

Keep it current

Review your nominations after big life events, marriage, a child, a death in the family, so the money never goes to someone you no longer intend. Learn the full picture in nomination.