InvestorQ : If I appoint a nominee for my bank account shall he inherit the money after my death?
simran Kaur made post

If I appoint a nominee for my bank account shall he inherit the money after my death?

Answer
user profile image
9 months ago


It is a very common question for all since in every form we often fill the details of the nominee. However, you will be surprised to know that the nominee does not own the money lying in your bank account after your death. This is so because he only becomes the caretaker of the money until that money or assets are distributed among the legal heirs of the deceased. The money shall be given only according to the will of the Indian Succession Act.

Who is a Nominee?
A nominee is a person assigned by the policyholder/account holder at the time of taking the policy or opening a bank account, who will be legally entitled to receive benefits in the event of policyholder’s death. He is just like a custodian assigned on behalf of the account holder.

Nominating a person does not guarantee an inheritance. Any nomination does not override the laws of succession in India.
So, if the nominee is not actually your legal heir, the money shall not be given to him legally. If you want that the money or assets that you have shall pass to the nominee itself, you should prepare a will acknowledging the same and then only your nominee could own the money legally. 


user profile image
AR Kadam answered.
9 months ago


Nominee has to act as the care-taker of the assets in the absence of the investor if he is not the legal heir of the assets.

Nominee and Legal Heir can be the same person in such case he/she will inherit the money in the bank account after the death of the investor.

You can make WILL, in case you want your money to be inherited by a person who may or may not be legal heir.