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Will, nomination and succession basics
Sorting things out in advance is one of the kindest things you can do for your family. A plain guide to nominations, Wills and the paperwork in between.
Why this matters
None of us likes to think about what happens after we are gone. But families are often left with months of paperwork simply because nobody sorted it out in advance.
Life brings uncertainties: a sudden illness, an accident, a business problem. A little preparation means your investments reach the people you intend, without delay or dispute.
Two things do most of the work: nominations on every investment and policy, and a Will. They are not the same thing, and one does not replace the other. Most Wills are fairly simple, and the process is less complicated than people expect.
Nomination and a Will: what each does
In December 2023 the Supreme Court held that a nomination for shares and securities does not override succession law or a Will. The nominee holds the investment for the legal heirs.
| Nomination | Will | |
|---|---|---|
| What it does | Tells the fund house or depository whom to transfer the units to after a death | Says who finally inherits what you own |
| Where it is made | On each folio, demat account, bank account or policy | One document covering everything you own |
| Does the person own it? | Not automatically: for investments, the nominee holds it for the legal heirs. Life insurance can differ when the nominee is a spouse, child or parent | Yes, subject to the law |
| Why you need it | Makes the transfer quick and simple | Makes sure the right people end up with it |
Nominations for mutual funds
This part we can help with directly, on every folio you hold through us.
Nomination and transmission formsA simple checklist
An afternoon's work that can save your family months.
- Nominate everywhereMutual fund folios, demat and bank accounts, insurance policies and provident funds.
- Make a WillWith an advocate. Keep it simple and clear, signed by you and attested by at least two witnesses.
- Name an executorSomeone you trust to carry out the Will.
- Keep one listEvery account, folio, policy and loan, with where the papers are kept.
- Tell your familyWhere the list and the Will are, and whom to call.
- Review after big eventsMarriage, a birth, a death, divorce, or a move abroad.
Common questions
About nominees, heirs and Wills.
If I have a nominee, do I still need a Will?
Can Finpotters write my Will?
What happens if there is no nominee and no Will?
Can an NRI be a nominee?
Are your nominations up to date?
Send us a message. We will check every folio you hold through us.