Whenever you fill out a form related to any kind of investment or opening a bank account, you will see the ‘nominee’ column. Nomination is a service provided by financial institutions under which a deposit account holder, investor, or a safe deposit locker holder can name someone to claim all the deposits or investments in case of their death.
The name of a person under the bracket of nomination signifies that the original account holder or the investor is willing to pass all his wealth in those accounts to the person named filled after their death.
Failure to confirm the nominees in any investment or saving scheme can create a lot of trouble for our loved ones. But who should you make your nominee? Usually, people nominate their family members in such cases. However, there are no restrictions on who you chose but this decision should be taken wisely.
Here’s a suggestion on who you could make your nominee
Parents
You can nominate your parents as the successor of your wealth. Naming them as your nominee requires you to fill in their information and signature. Parents live for their children and no amount of wealth can suffice the loss of their child. However, they could live a stable life with the money you leave behind.
Spouse
You can also name your spouse as the nominee for your investments or deposits. They will be able to claim the benefits which could be helpful for them and your child in future. The loss of a life partner can bring up emotional challenges and trauma. Having financial stability can least enable one to tackle the challenges
Children
You can also name your children as the nominee for your wealth. It will help them in getting a good education and live a life with lower financial obstacles. In case of your unexpected death, your life savings could help them in living a better life. This is also the way to support your child after your absence.
These are some of the points you should keep in mind before the nomination
Include the nominees’ full name, age, address, and relationship with you.
If the Nominee is a minor, then appoint a major as an appointee. Include the appointee’s full name, age, address, and relationship with you. If the account holder passes away while the nominee is a minor, then the appointee will get all the financial beneficiaries and has to invest in the well-being of the minor.
It is important for you to carefully asses your assets before nominating anyone for your hard-earned money. Go through your financial assets, account holdings, and locker content.
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