Personal Finance Blog India –


Nomination facility is available almost for all investment instruments like fixed deposits,mutual funds ,bonds,demat accounts etc.But in general we fell to understand the importance of nomination.

Rbi have also directed banks to convince customers to make nomination.(of course its not compulsion.Banks can not deny fixed deposit account just because customet do not want to nomiante. )

Three common reasons why peoples do not want to nominate:

1.Its diificult for them to face the fact that we will no more one day.

2.Its difficult to choose the nominee among legal heirs.

3.View that wife (or husband) is a default nominee.

Some important facts about nomination:

1.Even though deceased person have made a nomination,it can be challenged by other heirs in court.

2.Will supercedes nomination.

3.We can do multiple nominations in mutual funds.(% wise).

4.If we do not want to nominate we can make account joint with operating mode of either or survior.

There are a lot of hassels to obtain succession rights of deceased person.

1.Notary: if amount is very small,,then banks may adjust with notary ,,but its rare that banks or mutual funds will agree with it.

2. In general,, …Banks ,mutual funds demand court order or magistrate attested affidavit to award you a nomination of deceased person.

To take court affidavit is a costly process.It involves application in court for succession certificate,,then advt of claim in leading newspapers and if no one challenges ,,court offers you succession order.It takes nearly 6 months to complete the process.

So..To avoid hassles today do not creat hassles tomorrow and make nomination for possible assets.

Category: Commodities, Fixed Income, Mutual Funds


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