The person who is named by the owner of a movable or an immovable property to receive the property or the benefit thereof at the time of death of the owner is called the nominee.
How to Nominate?
Any nomination must be formally made by submission of the prescribed application form to the bank, insurance company, etc. against acknowledgment. The acknowledgment and the confirmation of the nomination having been recorded should be regarded as valuables and stored securely.
For what to Nominate
Nominations should be made for savings bank accounts, fixed deposit accounts, mutual fund units, insurance policies, safe deposit lockers, public provident fund (PPF), immovable property, etc. The person who is nominated should be informed of the nomination and, a copy each of the acknowledgment and the confirmation of the nomination having been recorded should be made available to the nominee.
Benefit
The person nominated steps into the shoes of the owner and can deal with the bank, insurance company, etc. without having to provide Court orders, succession certificate, letters of administration, etc.
Duty of the Nominee
The nominee is only the trustee of the properties of the owner. He has no right to deal with the property unilaterally but is responsible for ensuring that the property reaches the hands of the legal heirs of the owner.
