Is nominee the actual beneficiary of savings account proceeds, NSC proceeds, Post Office Sr. Citizen scheme proceeds in the event of death of depositor or legal heirs can claim proceeds as per succession act?
No, a nominee is not necessarily the beneficiary of a deceased/dead person’s accounts. The nominee is the person who has the right to operate the account after the person’s death. The nominee is like a trustee who will look after a person’s financial accounts after the person’s death. The nominee may not be the heir of the assets, but has the responsibility to hold the assets and transfer them to the deceased person’s legal heirs. In case the deceased person has not made a will, the legal beneficiaries will be decided as per succession laws.1
- Saving instruments: Nominees v. Beneficiaries, Bank Bazaar, accessed at https://blog.bankbazaar.com/saving-instruments-nominees-vs-beneficiaries/
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