Your Nominee ≠ Your Heir: 5 Things to Fix Now

Most Indians think naming a nominee is enough to pass on assets. It is not. A nominee only holds your money temporarily. Your legal heirs must still go through a proper process to actually own it. Here is what every family needs to know.

Here's what happened: A nominee on your FD, mutual fund, or insurance policy is a trustee — not the legal owner. Real ownership transfers only through a valid Will or succession law.. Without a registered Will or probate, banks and institutions can demand succession certificates, indemnity bonds, or court orders before releasing assets — causing months of delay.. Digital assets like crypto wallets, UPI balances, trading accounts, and email-linked investments have no standard inheritance process yet, leaving families locked out permanently..

What you should do: Write or update your Will today — a simple registered Will drafted with a lawyer costs ₹2,000–₹5,000 and removes all ambiguity for your family.. Check that nominees are updated on every asset — bank accounts, PPF, EPF, mutual funds, insurance policies, and demat accounts — especially after marriage or a death in the family.. Create a single 'asset inventory' document listing every account, policy, locker, and login credential, and store it with your Will or share it with a trusted family member..

Pro tip: Probate is no longer mandatory in most Indian states, but getting one for a Will still makes bank and property transfers dramatically faster — worth the ₹5,000–₹15,000 court fee.