Nominee Vs Legal heir
Nominee:
A person who has been nominated by you to act as the trustee/caretaker of your assets in the event of your death. However, he is not the owner of the property, he can just act as the holder of the property. A nominee is bound to transfer the assets of the deceased to the ultimate legal heir as per the will executed by the deceased. A nominee may not necessarily be a legal heir or a relative. However, a nominee holds the assets with him till a legitimate claim is made by the legal heirs of the deceased’s property.
Legal heir:
A legal heir is someone who is mentioned in the will of deceased individual as the ultimate owner of the assets and investments of the deceased. In the absence of a will, the provisions of succession laws will come into force based on which the deceased’s properties are distributed. So, it is very important to execute the will when you are alive to avoid any possible disputes among your heirs after your demise.
Succession laws:
Here are the links to the respective acts: Indian Succession Act, 1925: Click to access indian_succession_act_1925.pdf Hindu Succession Act, 1956 Click to access indian_succession_act_1925.pdf The Muslim Personal Law (Shariat) Application Act, 1937 Muslim Personal Law (shariat) Application Act 1937.pdf
Absence of will:
If a person dies without making any will then the assets and investments will be shared as per the respective succession acts as mentioned in the above chart. However, it is highly recommended to make a will while you are well and good. Absence of will may result in chaotic situation where the legal heirs would lodge legal fights against each other and end up with grief.
Care should be taken while making a will such as:
Mention the full name of the nominee along with his address, age and relationshipsInstead of mentioning the relationship alone such as children, son, spouse etc., mention their names along with the relationshipIf the nominee is a minor, then appoint a trustee who will act as a care taker till the nominee attain the majority.
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