If you think appointing nominees for all your investments, from insurance to property, is as good as drafting a will, you may be wrong. Mumbai-based Nalin Shah found this out recently when he approached his lawyer for drafting a will. In 2010, he had appointed his wife as a nominee in an insurance policy, but his lawyer informed him that his wife would not automatically receive the sum insured.
Instead, the legal heirs named in his will would inherit it. Experts say that a nominee is merely a trustee, who must distribute the assets to the legal heirs named in a will, or as per succession laws.
However, there are some investments, like company shares, where the provisions of the respective Acts override those of succession laws. Here's the legal position of the nominee in different situations. CLICK ON THE LINK
https://groups.google.com/forum/?fromgroups#!topic/life-underwriters-guild-of-india/vZfx_InLZQQ
Instead, the legal heirs named in his will would inherit it. Experts say that a nominee is merely a trustee, who must distribute the assets to the legal heirs named in a will, or as per succession laws.
However, there are some investments, like company shares, where the provisions of the respective Acts override those of succession laws. Here's the legal position of the nominee in different situations. CLICK ON THE LINK
https://groups.google.com/forum/?fromgroups#!topic/life-underwriters-guild-of-india/vZfx_InLZQQ
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