123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL » Education >> View Article

Have You Nominated Someone On Your Accounts?

By Expert Author: Artham Vidya

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 : 38Word Count Appx. : 377See All articles From Author

Education Articles

1. Job Mela 2016 Chandranna Udyoga Mela Registration
Author: tom zing

2. Preparation Tips To Crack Pte Academic Test
Author: Catherine Roberts

3. Things To Know About The Microsoft Certification Today
Author: Things to know about the Microsoft Certification t

4. Catia: - Leading Design Solutions Software
Author: Computer Aided Three Dimensional Interactive Appli

5. Project Management: - Managing Complex Task And People.
Author: Project management is the process of organizing wa

6. All About The 820-424 Cisco Certification Tests
Author: Susan

7. How To Pass Cisco 300-365 Exam
Author: Susan

8. Top Eight Reasons To Learn Spanish
Author: varun

9. Mp Patwari Question Paper In Hindi Pdf
Author: Divya

10. Why Do Indians Want To Study In Abroad?
Author: Higher Education

11. Exam Of C2090-632 Could Worth It?
Author: Eugene Hilson

12. The Benefits Of Achieving The C_thr86_1502 Certifications
Author: Eugene Hilson

13. Textbooks For Cheap
Author: textbooks for cheap

14. Aims Institutions: Honing The Right Skills In An Individual For A Bright Future!
Author: Ramesh Chavan

15. Find Out How The Top Universities In Uae Are Ranked By Browsing Online
Author: Mahesh shiraskar

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