Bank accounts and fixed deposits
The bank pays the nominee and is then discharged. Courts have long held that the nominee receives the money as a trustee for the legal heirs, not as the owner. Since 2025, banks allow up to four nominees on a deposit, either together or one after another.
Life insurance
Insurance is the exception. Since the 2015 amendment to Section 39 of the Insurance Act, if the nominee is your parent, spouse or child, they are a beneficial nominee and keep the money. Anyone else holds it for your heirs.
Provident fund, gratuity and pension
Provident fund and gratuity are paid to the nominee under their own rules, which limit nominations to family members in many cases. A family pension is not part of your estate at all; it goes to the eligible family member under the pension rules, whatever your Will says.
Make them agree
The safest plan is for every nomination to point the same way as your Will. When we draft, we ask for your nominations and flag any that contradict your wishes, so your family is not left to fight it out.
Frequently asked questions
Does a bank nominee own the money?
Generally no. The bank pays the nominee, who holds the money for the legal heirs as decided by the Will or succession law.
Is an insurance nominee different?
Yes. If the nominee is your parent, spouse or child, they are a beneficial nominee under Section 39 of the Insurance Act and keep the money.
Can I leave my family pension by Will?
No. A family pension goes to the eligible family member under the pension rules.
General information, not legal advice.
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