In my earlier articles, I had discussed how “Hindu Succession Law applies when someone dies without a valid will?” and “How you can prepare a simple will?”, now this article is an effort to give some clarity on positioning of nominee in your investments. Generally investors believe once they have done nomination, their duty is over and after their death nominee will get the money and he can utilize it easily.  This is a wrong belief.

Nominee is Just Trustee: According to law, nominee is not owner of your investments. He is only trustee of your investments. His job is to accept your assets in case of your death and distribute it to your legal heirs as per your will or if there is no will then according to succession law applicable to you. So it is primary responsibility of nominee to accept assets of the deceased person and transfer it to correct beneficiaries. By mere nomination one does not become owner of the assets.