Property Nominee Rules – If you have made any of your heirs (such as a family member) a nominee, then he can get a share in your property. But, if the nominee is a friend or acquaintance of yours, then he will only have the right to withdraw your money, he will not become the owner of the property. Here understand the difference between nominee and heir which people often do not understand-
Property Nominee Rules If you open a bank account, take a scheme or policy, then you have to provide the details of the nominee. The nominee is the person who gets the right to withdraw money from those properties in your absence. However, it is not necessary that the nominee is the rightful owner of your property. The heirs (your legal heirs) are the real owners of your property. The nominee only acts as a trustee.
If you have made any of your successors (such as a family member) a nominee, then he can get a share of your property. But, if the nominee is a friend or acquaintance of yours, then he will only have the right to withdraw your money, he will not become the owner of the property. Here understand the difference between nominee and successor which most people do not understand.
Who is the successor-
The successor is actually the one whose name is written in the legal will by the real owner of the property or he has the right over the property according to the succession law. If your nominee is one of those successors, then he is entitled to get a part of the property or distribution of money. If you want that after your death the desired nominee should be the owner of your entire property, then it is necessary to clearly mention his name in the will. (Who is the successor)
Class-1 and Class-2 successors-
Class-1 successors have the first right to get the amount. This money should be divided equally among them. But if there is no Class-1 heir, then the division is done among Class-2 heirs. Son, daughter, widowed wife, mother come under Class-1 heir and father, son and daughter’s children, brother, sister, brother and sister’s children come under Class-2. If a person does not have any Class-1 or Class-2 heir, then a distant relative who is related to the deceased by blood can become the heir.
Who is a nominee-
It is important to appoint a nominee for your property or policy. The nominee is the custodian of the property after your death, who gets the right to claim the money of the property or policy. However, just being a nominee does not give him the right to ownership. If the nominee is your heir, he can get a share in the property, but it will be shared with other heirs. (Who is a nominee)
If the nominee is an outsider or friend, then he will withdraw that money and hand it over to the heirs. In such a case, the shares of that amount or property will be divided equally among all the legal heirs. A friend or outsider who is a nominee, but is not an heir, can become entitled to that property only if his name is clearly mentioned in the will.
