Nomination in Accounts, Lockers, Mutual Funds and
other Assets
Why is it important to have nomination in all your bank accounts/investments and how can nominations be done now??
Few
years back I lost my mother and that was the time when I actually
understood the importance of having proper nominations in all
accounts and investments be it savings account, PPF

account or
Fixed Deposits or bank lockers or even the Mutual Funds or securities.
Nomination is a facility of naming someone to receive the balance in accounts in case of death of account holder.
I must tell you all that
no nomination is the biggest mistake, as
unfortunate times are never expected. We can not plan for such
events but we can definitely make our hard earned money/assets easily
accessible to our loved ones when we are no more.
Nominee
can be any one from your closed ones to your friends. However to avoid
any future disputes its always better to nominate your legal heir as
the nomiee ie spouse & children. Nominee can also
be changed from time to time. Its important to keep a track of
nominations and update it if required.
Nomination in Bank Accounts, Lockers & Fixed Deposits
As per Banking Rules a Nominee will receive the balance in bank
accounts, lockers & FDs in case of death of the Account holder.
In cases of
no nomination
the legal heirs upon death of account holder
have to prove their legal
heirship by providing documents like succession certificate,
legal heir certificate & other documents as may be required by
bank. Getting these certificates itself is a time taking and money
consuming process.
In simple words, proper Nomination in all deposit accounts & Lockers simplifies the process of
settling claims on death of the account holder to the nominee.
Now when we are facilitated with net banking, we can check & update the
nominations in our accounts online. You can check and update the nominations in all your Bank accounts by logging on to
your net banking. However for bank lockers nomination can be done by visiting your bank branch.
How to Check Nomination in SBI Bank?
How to Check Nomination in ICICI Bank?
Nomination in PPF, NPS & Lfie Insurance
PPF, NPS & life Insurance Policies have option to appoint more then one person as nominees for which share of each
nominee must be defined to make it a total of 100%.
PPF & Life Insurance- In
the event of death of the subscriber, amount in PPF account will be
given to nominee/legal heir. In case life insurance too the policy
amount will be given to the nominee in case of death of the subscriber.
NPS- In the event of unfortunate death of the subscriber, 100 % amount of
NPS will be given to nominee/legal heir and there will be no annuity
required to be purchased.
In case of no nomination the legal heirs have to prove their legal
heirship by providing documents like succession certificate,
legal heir certificate & other documents as may be required.
However in case of nomination to be done/updated in PPF, NPS & Insurance Policies,
you can download the nomination form from the website of your bank, NPS
portal or insurance provider. Fill the nomination form and contact your bank
in case of PPF, POP for NPS and Insurance provider for insurance to submit the
nomination form.
If PPF account is online, nomination can be checked by logging on to
your net banking. In case of NPS too you may check the nomination
online through your PRAN.
All about Public Provident Fund - PPF
All about additional deduction of ₹ 50000 for NPS-National Pension Scheme
Nomination in Mutual Funds & Securities
Presently
nomination is mandatory in case of new folios of Mutual funds
where mode of holding is single. Fund houses do not allow new holdings
to individuals without proper nomination.
For
the holdings in electronic mode, the nominee of Demat account will
automatically be appointed as nominee in mutual funds. You can check
your folio to confirm the nominee.
For any previous holdings where nomination is not done, the nomination
form can be downloaded from the website of the mutual fund house. You
need to contact the fund house and follow the process as directed by
them for updating the nomination.
Equity Linked Savings Schemes - ELSS a great option for tax savings
Systematic investment Plans - SIP a regular savings plan
Some Other useful links:
How to Check Nomination in SBI Bank?
How to Check Nomination in ICICI Bank?
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I would
love to here for a feed back or for a query. So do write to me at
arpita@tdsmaster.com