PPF Nominee vs Legal heir
2 months ago
My father opened PPF account in post office and made my sister nominee in that account. Now after my father death cam me(son) and my mother have claim in ppf account besides my sister who is nominee. My father made no will.
A.Dear Client,
Nomination in financial instruments, such as fixed deposits, primarily designates a person (nominee) to receive the proceeds or benefits of the asset upon the death of the account holder. However, the nominee does not become the owner of the asset; instead, they act as a custodian or trustee.
The legal ownership of the assets, including fixed deposits, is determined by succession laws in the absence of a will. In case of the depositor's death intestate (without a will), the legal heirs are entitled to the corpus of the fixed deposit and other investments.
The nominee's role is to facilitate the smooth transfer of the assets to the legal heirs and act as a custodian until the distribution is carried out according to the applicable legal provisions. Legal heirs, as determined by the succession laws, will have the rightful claim to the assets left by the deceased depositor.
Nomination in financial instruments, such as fixed deposits, primarily designates a person (nominee) to receive the proceeds or benefits of the asset upon the death of the account holder. However, the nominee does not become the owner of the asset; instead, they act as a custodian or trustee.
The legal ownership of the assets, including fixed deposits, is determined by succession laws in the absence of a will. In case of the depositor's death intestate (without a will), the legal heirs are entitled to the corpus of the fixed deposit and other investments.
The nominee's role is to facilitate the smooth transfer of the assets to the legal heirs and act as a custodian until the distribution is carried out according to the applicable legal provisions. Legal heirs, as determined by the succession laws, will have the rightful claim to the assets left by the deceased depositor.
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A.Dear Client,
Nomination is only a clause that allows the nominee to claim assets as ‘custodian’ on the deposit owner's death. The nominee doesn’t get ownership of the assets. They are just trustees/ custodians. The legal heir is entitled to the fixed deposit corpus including other investments in case of the depositor’s death. The nominee is the trustee of the funds and is legally bound to transfer the amount to the legal heirs. In case of no will, the succession laws decide the claim of legal heirs in the assets or deposits left by the deceased depositor intestate.
Nomination is only a clause that allows the nominee to claim assets as ‘custodian’ on the deposit owner's death. The nominee doesn’t get ownership of the assets. They are just trustees/ custodians. The legal heir is entitled to the fixed deposit corpus including other investments in case of the depositor’s death. The nominee is the trustee of the funds and is legally bound to transfer the amount to the legal heirs. In case of no will, the succession laws decide the claim of legal heirs in the assets or deposits left by the deceased depositor intestate.
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