Nominee is a person that gets the money or belonging of the account holder but this is actually incomplete and wrong information. Nominee is a temporary person that collects the money after death of the account holder. And distribute it among the legal heirs of the account holder.
Nominee acts as a trustee according to the law. There were many cases filed by the legal heirs of not getting the belonging or money because of this a decision was made that nominee will work as a trustee.
There are many types of account like PPF, Saving Account, Single Proprietor in Current account, NPS account, Fixed Deposit, Recurring Deposit etc. in which nominee we have to fill for the future.
If account is joint account and nomination is present?
The joint holder will get the money or asset, nomination has nothing to do with this whether their is nomination or not.
Can account have multiple nominee?
Yes their can be multiple nominee in account. When their are multiple nominee their shared percentage are fixed as told by the account holder. Example : Ramesh has an account in a bank and shyam, Rina, Rahul are nominee with 30%40%30% respectively. This amount of percentage is decided by Ramesh.
If nominee is only the custodian (temporary keeper) then why percentage is shared?
Yes their is nothing to do with this even if he has percentage share he has to share to the legal heirs.
If there is no legal heir?
If there is no legal heir then the asset will be equally distributed as per the Hindu Succession Act. There will be equal distribution among class 1 heir, if there is no class 1 heir then among class 2 heir, if class 2 heir not present distribution amongst Agnates and then Cognates (Agnate means a person related to wholly through males either by blood or by adoption. The agnatic relation may be a male or a female. Cognate means a person related not wholly through males. )At last if no one is present, the Government will take the property.
What if no nomination is present in account?This is a bigger issue if no nomination is present the family has to make pedinama or succession certificate. Then they have to decide in whose account money will be transferred and after transfer he will distribute among the legal heirs.
Nominee can be minor or not?
Generally nominee are not minor but if their is a minor nominee then his natural gaurdian will be mentioned in that account which will get as a custodian and when the minor turns major that amount will be held to him by the custodian (natural gaurdian).
Can nominee be changed?
Yes nominee can be changed at any time by the account holder.
In case of main (first) holder death?
The account has to be closed. It can’t be operated now.
In case of death of second holder?
The holder will be deleted from the account. Money or asset generated after death ?As any government help is given after death it will not be given, it will be reversed to government.