Big update for bank account holders. Significant news for bank account holders. For a bank account, demat account, or any financial account, it’s crucial to designate a nominee for the account holder. If you possess any of these accounts, you will need to designate someone during the account creation process. In fact, when opening the account, details such as the nominee’s name, their relationship to the account holders, age, and address are provided in the form.
In this context, the issue comes up regarding why designating a nominee is crucial when opening an account, and if someone has not appointed a nominee for their account, who will receive the funds in the account after their passing?
Is it possible to have multiple nominees?
Typically, following the account holder’s passing, the funds in their account are transferred to their designated nominee. Besides this, if someone has designated multiple nominees, the total amount held in the account will be distributed equally among all the nominees. Numerous banks are providing a similar service, allowing you to specify how much each individual receives after your passing.
If there isn’t a nominee, who will receive the funds in the account?
If an individual has not designated anyone as a nominee for their bank account and subsequently passes away, the funds in their account are transferred to their legal heir.
How will you get money if you do not make a nominee?
If an account holder has died and has not made anyone a nominee for his bank account, then the amount deposited in his account will be transferred to the legal heir. For this, the legal heir will have to submit some documents to the bank. These will require the death certificate of the deceased account holder, photo of the legal heir, KYC, Letter of Disclaimer Annexure-A, Letter of Indemnity Annexure-C.