By Delhi Law Advocates | Estate Planning & Litigation Team
At Delhi Law Advocates, a significant volume of our civil litigation involves bitter family disputes over inheritance. In almost 80% of these cases, the root cause is a misunderstanding of the legal standing of a “Nominee.”
People frequently rely on nominations in bank accounts, insurance policies, and cooperative society flats as a substitute for proper estate planning. This is a critical legal error.
The Jurisprudence on Nominations
The law in India is clear: Nomination does not amount to a transfer of title or ownership. As held by the Supreme Court in the landmark case of Sarbati Devi v. Usha Devi (1984), a nomination merely indicates the hand which is authorized to receive the amount on the payment of which the financial institution gets a valid discharge of its liability. The amount, however, can be claimed by the heirs of the deceased in accordance with the law of succession.
Are There Any Exceptions?
While the general rule is that a nominee is a trustee, there are a few very specific statutory exceptions where a nominee does acquire ownership rights, such as:
- Shares in a Company: Under Section 72 of the Companies Act, 2013, a nominee of shares gets absolute ownership, overriding other succession laws.
- Specific Insurance/EPF Rules: Depending on specific amendments, sometimes immediate family members nominated in certain provident funds hold stronger claims.
However, for standard bank accounts, mutual funds, real estate, and safe deposit lockers, the “Trustee Rule” strictly applies.
The Imperative Need for a Will
To avoid placing the burden of litigation on grieving family members, a registered Will is indispensable. A Will allows the testator to:
- Clearly define who inherits what, avoiding ambiguity.
- Appoint an executor to manage the distribution of the estate.
- Provide for family members who might not be primary heirs under standard succession laws.
Our Estate Planning Services
Our team provides comprehensive, dispute-free estate planning, including:
- Drafting and Registration of Wills.
- Procurement of Succession Certificates and Letters of Administration from Delhi District Courts.
- Legal representation in Will challenge (Probate) litigation.
Ensure your wealth transitions smoothly to the next generation. Consult with our legal experts today.
Book a Consultation
Delhi Law Advocates
📍 Office Address: A-52, B1 Floor, Sector-19, Dwarka, New Delhi-75
📱 Legal Helpline: +91-8766252309
🌐 Visit Our Website: https://advajaysinghmalik.com/