Nomination are absolutely must

Nomination is one of the most important aspects of succession and estate planning. Yet few investors and people know about it, and its implications. Here’s a guide to nomination for investors wishing to plan better


Nomination ensures comfort for the family to a free, easy and unfettered access to your money by your family in the occurrence of an unfortunate event. It is not only your right but also your responsibility to ensure that you do not leave behind headaches and have the money ‘frozen’ at a time when it is most needed.

Nomination is a simple exercise: at the end of every document contains a form which you are required to fill in indicating the name, relationship and address of the person who will be entitled to get your money, then sign it along with a witness. You should retain a copy. Those not opting for the facility too are required to put it in writing.

Please remember, express mandated nomination provisions are always available, be it for a savings bank or fixed deposit accounts, insurance policies, life and health, investments in shares or mutual funds, deposits for utilities like telephones or gas or other company deposits.

While nomination formalities are invariably carried out at the opening of the account/investment/payment stage, nonetheless it can be done at a later time also. It can even be modified or cancelled. However, it can be done only by the individual signing the documents and not by others. It is not applicable to trusts, societies, firms, HUF or its kartas or power of attorney holders.

It is possible to make out nominations in multiple names by specifying the percentages. Minors, trusts, government, local authorities and non-residents too can be nominees.

In the case of bank deposits and investments you can always make out nominations in different names. In the case of savings account, it can be one and for different deposits to different nominees, where different beneficiaries are contemplated for different deposits. No one can insist on registering only one nominee.

Effecting transmission on demise

1. Submit a letter in duplicate with the original and xerox of the death certificate along with the originals of the accounts to be transmitted. In death cases it is ‘transmission’ and not ‘transfer’.

2. Ensure proper identification of the nominee/beneficiary with KYC verifications.

3. In case the amount to be transferred exceeds Rs1 lakh, an Indemnity Bond may be sought.

4. In the absence of any nomination the claimant may be called upon to submit a Will, heirship certificate, and no-objection certification (NOC) from other heirs, letter of administration or succession certificate and indemnity bond.


(Nagesh Kini is a Mumbai-based chartered accountant turned activist.)

arun adalja
9 years ago
in many cases nominee s signature is not taken whil giving nomination first time this may create problem at transmissin stage so it must be made mandatory to take nominee s signature at initially.
Suiketu Shah
9 years ago
very important article,thanks
9 years ago
Francis Xavier R
Replied to MOHAN comment 9 years ago
tks for the link, mr.mohan
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