Will your nominee get the money on your death?

As per Supreme Court judgements, a nominee is merely a custodian of the asset/money, and the actual heir to the FD is the person to whom you left it in your will. If the two persons are different then the actual heir will have to claim the money from the nominee.

How can an heir deceased insured get the claim on a life policy?

The legal heir can make a claim when there is no nomination any time before the maturity of the policy, or if the insured has not requested a fresh nomination in case of the death of the nominee or in case of death of the nominee after the claim is filed but before its settlement.

What are the rights of nominee?

A nominee (pursuant to a nomination by the deceased during their lifetime) acts only as a trustee on behalf of the rightful legal heirs, holding any property until the matter of succession or inheritance has been decided under law.

What are the rights of a nominee for a bank deposit?

The nominee gets exclusive right to receive the money lying in the account. It gives him all the right of the depositor as far as the depositor’s account is concerned, according to Section 45ZA of the Banking Regulation Act.

Can a nominee keep the money?

If you elect not to complete a nomination, the proceeds of your account will form part of your estate on your death and will be dealt with under the terms of your will, under the rules of intestacy if you make no will, or under small payment provision.

Can legal heir claim insurance money from nominee?

When the insured person dies, his/her nominee receives the claim amount. However, they cannot use the claim amount unless they are a legal heir of the policyholder.

What happens if both insured and nominee dies?

If the nominee dies while the insured is alive, the nomination becomes null and void. The policyholder can change the nomination. However, if the nominee dies after the insured’s death but before receiving the claim amount, the amount would then be paid to the legal heirs.

Can nomination be challenged?

The Court said that in India a nomination cannot override the laws of succession. So, if the nominee gets the shares of an Indian company, they won’t be the legal owner of the shares. The legal heirs of the deceased shareholder will have a rightful claim over such shares.

What if nominee is not registered in bank?

If there is no nominee and no joint holder If the savings account of the deceased does not have a nominee registered and is not a joint account, then the bank will pay the money to the legal heirs.

Can bank nominee be challenged?

A challenge can certainly be mounted if there are good grounds. A lot would depend if there is a will or a succession certificate. In any case a nominee can only receive the money but he/ she is not entitled to keep the amount. The legal heirs will receive the assets/ estate as per succession laws.