Investor Corner/Money matters beyond investing/Practical & Operational
4.1.2 Nomination
Nomination names who should receive your investments if you pass away. It is a simple step to complete, and skipping it can create real legal complications for your family later.
A simple form with an outsized impact
Nomination is typically completed once, at the time of opening a folio or shortly after, by naming one or more nominees and specifying what percentage of the holding each should receive. Without a valid nomination on file, the process for legal heirs to claim an investment after the account holder's death can become considerably longer and more document-intensive.
Nomination versus a will
A nominee is generally the person legally authorised to receive the assets directly from the fund house, but they may still hold a legal duty to distribute according to a will or succession law if either applies and differs from the nomination. Nomination speeds up the immediate transfer process; it does not necessarily override a will's instructions about eventual distribution among heirs.
Keeping it current
Nomination details should be revisited after any major life event, such as marriage, the birth of a child, or a family member's death, since an outdated nominee can create exactly the kind of complication and delay this step was meant to prevent in the first place.
How PriLytics helps. PriLytics gives you a single, clear view of every fund and folio you hold, making it far easier to confirm nomination has actually been completed everywhere it should be. See holdings and returns.