Nomination & its Importance Who is a nominee? A nominee is a
person in whose name assets, securities and other investments
are transferred for the purpose of transaction and distribution.
However, the actual ownership of the asset lies with the owner,
who is also the nominator. Nominees are appointed for property,
insurance, mutual funds, stocks, bank deposit accounts and safe
deposit accounts to name a few. Why is a nominee appointed? The
purpose of appointing a nominee is to have someone who is
trustworthy and responsible to handle the nominator’s assets
after his death. What is the role of a nominee? According to
most of us, ‘nomination’ means that the asset/property will be
transferred to the nominee after the death of the nominator.
However, nomination means a ‘right to receive’ the asset and
‘not to own it’. A nominee is responsible to manage the asset as
per the nominator’s wishes after his death. But a nominee cannot
sell the property unless he is a legal heir. What is the benefit
of nomination? The a