Recently my friend went to bank to close the Account which was in her Father’s Name who passed away recently. To her surprise Bank People refuse to close the Account, because her father had not filled the Nomination details while opening an Account.
Dear Friends Tomorrow we may also face the same situation, Here with sharing some information on Importance of filling the Nomination details . You will find Nomination column in Bank Account Opening Form, Demat Account Opening Form, Investment Form or while taking an insurance policy. Generally we may Fail to enter the Nominations Details due to various reasons like
- No patience to read through entire form
- No Time to Read the Details in the Form
- Never realise the importance of Nomination
What is Nomination?
- Nomination refers to the act of nominating a person who will receive the money or rights on the shares in the event of the unfortunate death of the Nominator [Person who is making a nomination].
- Nominee is a person designated by the nominator to receive the money, upon the death of the nominator.
- Nomination gives the nominee [close family member] a rightful claim to your hard-earned money upon the death of the nominator.
- Nominee may or may not be the Final Beneficiary and will be the custodian of the account or LIC policy after the death of the Account holder or nominator.
Nomination process Details
- Very Simple Procedure
- Fill the Nomination Details in Bank A/c Opening Forms, Demat A/c Opening Form, Investment form or taking the LIC policy.
- Mention Full Name, Address, Age and Relationship with Nominee while filling the nomination details.
- If the Nominee is a minor, appoint a person who is a major as a Guardian by providing all the details.
- Choose Grown-up Children, Spouse or Dependent parents as Nominee.
- Nominee can be Changed at Any point of time.
- Use ‘Either or Survivor clause’ in the case of Joint Investment. Then the Transaction can be carried out by other Investor/ Account holder and transaction will not stopped.
Nominee and succession Right
- Investment in the form of a Company bond or Equity As per the Company Act Nominee will the Final Beneficiary and Always Supersedes the Will.
- Investments like Real estate, Bank Accounts or Mutual Funds , The Will Supersedes the Nomination, To ensure that Nominee will be Final Beneficiary make a Will indicating that Nominee will be the Final Beneficiary.
Always fill the Nominations Details!!!!