Nomination
Market basicsAlso called: Nominee
Naming the person to whom an institution may release assets on the holder’s death.
In plain terms
Five minutes now, or two years of paperwork for your family later.
1492 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 6 terms
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Estate planning
Market basicsArranging in advance how holdings pass on — a nominee registered on every account, a will where ownership needs settling, and a record of what exists.
In plain terms
A nominee receives; a will decides who owns. The neglected third piece is the map: a list of institutions and where the statements arrive, because families routinely lose track of holdings entirely.
Inherited portfolio
Risk & psychologySecurities received after the death of the holder and transmitted to a nominee or legal heir.
In plain terms
Take three to six months — there is rarely urgency and decisions made during grief are poor. The cost basis generally carries over, so a decades-old holding can carry a very large embedded gain.
Transmission
Market basicsThe process of transferring securities to legal heirs or a nominee after the holder’s death.
In plain terms
Simple with a nomination. Without one, and for a large holding, it can require a court.
Legal heir
Regulation & taxA person entitled to inherit under a will or, in its absence, under succession law.
In plain terms
The nominee receives; the legal heir owns. Confusing the two is how carefully planned money ends up in court.
Will
Market basicsA legal document determining who inherits your assets.
In plain terms
A nominee receives; a will decides who owns. You want both, and you want them to agree.