Fact About Nominee
Whenever you open your bank account or go to the bank or go to any post office, you Are Also Asked To Fill A Nomination Form At The Time Of Account Opening.
Whether that account is a savings account, FD, PPF account, a long term savings scheme like National Savings Certificate, any investment in shares or mutual funds or a term insurance policy of an insurance company.
Everywhere the option are given to fill the nomination, but do you actually know this? What does nomination mean? Nomination is not what many of you would normally think.
We all understand that if the account holder dies, then that money will be given to the nominee or whatever is the asset, the nominee will get it and that nominee will be entitled to hundred percent of that amount or that property.
But this is a very wrong and a very big miss concept. That doesn’t happen at all.
What is Nominee? Who can be the nominee? What are the rights of the nominee? In Which Cases The Nominee Will Get The Money After The Death Of The Account Holder And In Which Cases Nothing Will Be Received? Fact About Nominee
A person who receives someones money and assets after his/her death is called Nominee, Nominee Is A Pre Defined Person Who Will Receive The Assets After The Ones Death.
That is, before the death of the account holder, it is declared by him That This Person Will Be Its Nominee Who Will Receive That Assets Or That Money After The Death Of That Account Holder.
Let us understand this in a little detail. Nominee is the trustee not the owner of The Assets In Other Word He Is The Only Care Taker Of Assets.
He will only hold assets as a trustee and will also be legally bound to transfer The Assets To The Legal Heir. Fact About Nominee
And the nominee is a trustee. A care taker is the only and only keeper of that Asset, For That Amount Of Insurance Of That Property For Which He Has Been Made A Nominee, But The Nominee Is Not The Owner Of That Money Or The Property But He Is Responsible For That Property. Take That Money To Its Legal Right.
A nominee is someone who receives, but does not own, the assets of the deceased.
Nominee MAY BE and may not be the Beneficiary:
No nomination gives ownership. It only gives the right to receive the amount or That Property. That Too Only After The Death Of The Account Holder But There May Be Some Exception Cases.
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The One Who Comes Above All These Is The Will
Will Is The Supreme Authority Letter
That is, there is a document of the highest level, in which a person after his Death, In What Ratio Will His Property Be Divided, His Property Will Go To His Children Or If He Wants To Transfer It To Someone Else, Then He Makes A Will Document In It & Write All The Details. Fact About Nominee
After that, no matter who is the nominee, no matter what the legal heir, that Property Will Be Transferred Only And Only To That Person Who Is Written In His Will, That Is Why It Is Also Called A Supreme Authority Letter.
Now if after someone’s death, his will is not made, even then the nominee cannot use that money and it is his duty to take that money to the legal heir
The job of the nominee is only to transfer whatever money he has received after The Death Of The Account Holder To His Legal Right.
Now the question comes, who will be the legal heir to whom the nominee has got cash Or Whatever His Property, He Will Transfer The Disease Person, Then According To The Hindu Sub-Succession Act, If The Will Of Any Disease Person Has Not Been Prepared.
If the will document is not there then the property which is there will be transferred to class one heir, if there is no class one heir.
Class 2 heir can also be transferred. Those who come in class 1 heir are son daughter wife mother and the rest who come in class 2 heir are brothers, sisters, fathers, grand parents, grand children. Fact About Nominee
so if an account holder dies then The nominee will get the money from the bank, but he will not be entitled to it, so if a will document is written, then according to that will document, that money should be distributed.
But if no will document is written then that property will be transferred in the order of Class I heir of Hindu Sub-Succession Act.
Now here comes a very important point. There are also some cases in which the nominee can be the owner of that property for that money.
First Case :
First comes the Employee Provident Fund, a Salary Employee will know very well what is EPF, if you work somewhere, then you have to open an account in EPF. If you have opened your account
So some of your money keeps accumulating there too, so there is the process of same nomination.
You enter the details of the nominee there and if the account holder dies and the money is kept in that account, then the nominee will be the owner of that money. One cannot become a legal heir owner here. Fact About Nominee
second case :
If the name of the nominee is given in the will document created, then only the nominee can be the owner.
third case :
If the nominee is the legal heir means the legal heir of class 1 is the nominee only. If a father has made his son a nominee, then the nominee is the legal heir.
So the nominee in all these three conditions will be the legal entitlement as well. He will be its owner, but apart from these three conditions, the nominee can never be the legal owner of that amount.
He is the only one and only his care taker. Many who are nominees know that they are going to work only and only as a care taker, they will not become a legal entitlement. After the death of the account holder Fact About Nominee