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Basics4 min read

Nominee vs legal heir — know the difference

Nomination is temporary custody, not inheritance by itself.

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.

FAQs

Clear answers in plain language. Educational guidance only.

What is this guide about?
Nomination is temporary custody, not inheritance by itself.
Is this personalised financial advice?
No. Finkoin Learn articles are educational. Verify rates, rules, and product terms with your bank, insurer, CA, or a qualified professional before acting.
How often is this updated?
We refresh guides when rules or market norms shift materially. Tax and regulatory topics may change each Finance Act — always cross-check the current year.
Can I use Finkoin tools with this article?
Yes. Calculators and the financial health check on Finkoin help you model numbers discussed here — use them alongside official sources.

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