Most NRIs think naming a nominee on their bank account or mutual fund is enough to ensure their assets pass to their loved ones. But here’s the truth: a Will overrides a nomination in most cases. This blog clears the confusion and helps you avoid future legal hassles for your family.

⚖ Nominee vs Legal Heir: Know the Difference

When you fill out a bank or mutual fund form in India, you’re often asked to add a nominee. But here’s the catch:

• A nominee is NOT the legal heir
• A Will is the legally binding document for succession
• Courts in India have consistently ruled that a Will takes precedence over nomination

So if you haven’t written a Will and are relying on nominations alone, your family may face legal disputes — even if your intentions were clear.

📌 Let’s Break it Down

✅ What is a Nominee?

A nominee is a person authorized to receive your assets after your death, but not necessarily to own them.

👉 They act as a trustee, not the rightful owner.

Examples:

• Bank account nominee: Can withdraw funds, but may have to distribute them to heirs.
• Mutual fund nominee: Can redeem units, but the Will decides final ownership.

📜 What is a Will?

A Will is a legal declaration where you define:

• Who inherits your assets
• How they’re divided
• Who executes your wishes (the executor)

It overrides nominations, unless the Will explicitly confirms the nominee as the beneficiary.

⚖️ Legal Precedents in India

Several court rulings have clarified this:

• Supreme Court (2016): In life insurance, nominee is only a custodian, not the owner.
• Bombay High Court (2012): For shares and mutual funds, legal heirs have final rights if there’s a Will, even if there’s a nominee.

🧠 Moral of the story: Nomination ≠ Inheritance

🔄 What Happens if You Only Nominate and Don’t Make a Will?

• Your nominee receives the asset
• Legal heirs (like spouse, children) can challenge the nominee’s right
• Disputes may lead to freezing of accounts, court cases, and delays

This is especially painful for families of NRIs who live abroad and cannot quickly travel or navigate Indian courts.

✅ What You Should Do as an NRI

1. Make a clear, detailed Will covering all your Indian assets
2. Align your nominations with your Will (to avoid contradiction)
3. Update both regularly after major life events (marriage, birth, separation)
4. Use professional help — inheritance laws vary by religion in India

🛡 How NRI Nivesh Helps

With presence across Singapore, Abu Dhabi, Nairobi, Jakarta, Germany, and Bangkok, we assist NRIs in:

• Drafting and registering Wills in India
• Reviewing existing nominations for alignment
• Navigating Hindu, Muslim, Christian succession rules
• Legal handholding to avoid future disputes

We ensure your money goes where you intend — not where the law defaults it.

❓Relying Only on Nominations?

It’s like locking your valuables and giving someone the key — but forgetting to tell them what to do with it.

Want to align your nominations and Will the right way? Speak to our estate planning experts.

Secure your intentions. Avoid confusion. Let NRI Nivesh guide your estate the right way.