Financial institutions ask for nominees to streamline settlement — the nominee receives assets to transmit toward lawful heirs, not automatically to keep if wills or succession law say otherwise.
A will clarifies intent for non-dematerialized assets, bank accounts, and personal effects. Mutual funds and demat accounts still need transmission paperwork even with nominees aligned.
Joint holders bypass some frictions but create their own disputes if contributions were unequal — document Gift Deeds or loan agreements when families pool money.
Update nominations after marriage, childbirth, divorce, or estrangement — stale ex-spouse nominations cause Bollywood-level litigation in real life.
Store a one-page inventory of policies, passwords in a secure vault, and CA/ lawyer contacts for executors.
Related articles
More in Basics
- 6 min read
What is compound interest and why it changes everything
How small, early contributions snowball — and why delaying costs more than you think.
- 6 min read
Emergency fund — how much, where to keep it
Survival money should be boring, liquid, and separate from your long-term investments.
- 5 min read
What is the 50-30-20 budgeting rule
A simple frame: needs, wants, and future-you — tweak percentages for Indian city realities.