Why it matters
A lifetime of disciplined investing can still leave a family in difficulty if the paperwork behind it was never put in order. Assets held in a sole name without a valid will, nominations left as they were decades ago, and documents nobody can locate — these turn a straightforward transmission into a process that takes years.
Nomination is not inheritance
This is the single most widely misunderstood point in Indian personal finance. A nominee is a person authorised to receive the asset from the institution holding it. In most cases the nominee receives it as a trustee for the legal heirs, not as the owner.
A will determines who ultimately inherits. Where the two conflict, litigation follows. Both should exist, and both should say the same thing.
What a sound arrangement usually includes
- A valid will — in writing, signed, and attested by two witnesses who are not beneficiaries. Registration is optional in India but makes the document harder to challenge.
- An executor named in the will, willing and able to act.
- Nominations updated across bank accounts, mutual funds, demat accounts, insurance policies and provident fund.
- A written record of what exists and where — accounts, folios, policies, property papers, locker details and the people to contact.
- Joint holding considered where appropriate, since it eases transmission considerably.
Transmission of mutual fund units
Where units are held with a nomination in place, transmission is generally a matter of submitting the prescribed form, a death certificate and the claimant's KYC. Where there is no nomination, the requirement escalates quickly — indemnity, sureties and, above a threshold, a succession certificate or probate.
We assist families through this process for holdings arranged with us, and will help you get nominations in order well before they are needed.
Please note
Drafting and registration of wills, trusts and succession documents is a legal service. We help you organise your holdings and records, and will work alongside a qualified lawyer for the drafting itself.