123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL >> Education >> View Article

Have You Nominated Someone On Your Accounts?

By Author: Artham Vidya
Total Articles: 24

This is actually a tiny detail that so many of us forget when we do our financial documentation but very vital when it comes to succession issues.

I know that I am very lazy I rarely do it.

Specifying a nominee in your bank account, fixed deposit account and your demat account (among others) makes it easier for your successor to claim the money or securities in your accounts.

What is a Nomination?
When you are filling up an account opening form, the bank usually asks you to write down the name of a nominee – any individual who will receive the proceeds of the account in case of your death (and other joint holders). A nomination in such a case, ensure that your successor will be able to avail the amount in your account with a minimum of documentation and hassle.

What does a Nominee do?
In the case of any account with a bank, the nominee (the person or persons designated in the account) will have the right to get the amount held in the deposit even though he or she is not the owner of that amount. The bank or financial institution will distribute the proceeds to the nominee in accordance with the laws of succession.

There is a slight difference in the case of a Demat Account: Here the Nominee becomes the owner of the securities lying in the Demat Account of the original holder or holders. The proceeds (that is, the securities are transferred to the demat account of the nominee in line with the process laid down.

What is the process to appoint a Nominee to an account?
It is quite simple and does not require any big procedure. All you need to do is fill and submit the Nomination form available at any branch of the bank or institution.

Can there be more than one Nominee for an account?
It differs from account to account. Certain accounts like savings, demat and fixed deposits can have only one nominee; however, accounts like PPF and mutual funds can have more than one nominee.

What is the role of a Nominee in case of a Joint Deposit Account?
The Nominee’s role comes into play only after the demise of all the account holders.

Total Views: 56Word Count: 377See All articles From Author

Education Articles

1. Cheap Pte Training Helps You Score Good For Immigration Or Applying To Universities Abroad
Author: jacobwincel

2. Microsoft Certifications Can Help You Fulfil Your Career Objectives!
Author: Multisoft Virtual Academy

3. Best Online Education System
Author: sana javed

4. Five Factors To Consider For Attending Microsoft Dynamics Crm Training
Author: millfrederick

5. Learn Spanish Online To Avails Lots Of Advantages
Author: Foreign Classes

6. Make Your Career Bright With Aws Solution Architect Associate Training
Author: millfrederick

7. J2ee Training In Chennai
Author: Ajay

8. What Is The Scope Of Python?
Author: Lear5nVern

9. Consultants How To Determine The Interest For An Online Class
Author: Arpita Classes

10. Key Benefits Of Microsoft Dynamics Crm In On Organization
Author: Multisoftsystems

11. Institute Of Overseas Languages & Training
Author: Prayag

12. How Community-centered Experiential Learning Is Used In Mba
Author: Shoeb Mannur

13. Climb Up Your Career Ladder With Cbap Certification!
Author: Multisoft Virtual Academy

14. Build Career On International Level With Best Ielts Coaching Institute
Author: Harvinder Singh always provides something useful f

15. Convey Tech Labs Offering Best Online It Training In India
Author: Vivek Potnuru

Login To Account
Login Email:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: