process
A Nominee Is Not An Heir
The rule
A nominee only holds your money in trust, like a helper keeping the keys. Who really inherits it is decided by your will or by law.
Where it flips
Thinking 'a will fixes everything' can make you careless about the living papers. A stale will, or a hidden list of accounts, is nearly as messy as none. So pair the will with an up-to-date asset list your family can actually find.
Many people think naming a nominee settles where the money goes. It does not. A nominee is just a keeper. He receives the money and must pass it to the legal heirs. Without a will, your assets are split by the law that applies to you. That may not match your wish and can drag the family into fights. So write a simple will. Also keep a plain list of every account, policy and fund. That is what lets your wealth pass cleanly. Money nobody knows about is money your family may never even find.
A worked example
Aayra names her brother nominee on a ₹40 lakh mutual fund, thinking he inherits it. But she has no will. The law splits it among her husband and children. Her brother must legally hand it over to them. [illustrative]
How to spot it
- ·'I've added a nominee, so it's all sorted'
- ·no written will
- ·no single list of accounts, policies and passwords
Monika Halan · Let's Talk Money