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Education . Nominee vs Heir . 3 of 3
So what does the nominee box actually buy you
Speed. It lets a fund house, a bank or a depository release the money without waiting on a probate queue, which is worth having and takes about four minutes to set up. What it does not do is decide who keeps the money once it lands. That job belongs to a different document.
01
Nomination is a payout instruction. It answers whose hand, not whose money. The Supreme Court said so on insurance in 1983 and on shares in 2023, forty years and eight days apart, because people keep assuming otherwise.
02
Insurance is the exception, not the pattern. Name a spouse, parent or child on a life policy and they are beneficially entitled since 2015. The demat, the folios and the bank balance do not work that way, and those are the ones everyone assumes are handled.
03
Ten nominees is still not a will. Percentage splits divide a payout. A will divides an estate. Without one, the Succession Act divides it for you, and it has never read your nomination form.
The nominee box tells them where to send it. It has never once decided who gets to keep it.
General information on how nomination and succession interact in India. Not legal or tax advice. Personal situations differ by religion, marital status and the assets held. Speak to a qualified professional before acting.
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