Most people who have organised their finances believe the succession part is handled, because every account has a nominee. It is not handled. A nominee is a person authorised to receive an asset and hold it — a trustee for whoever is legally entitled. Who is legally entitled is decided by a will, or, in its absence, by succession law.
You are out; the courier leaves the parcel with a neighbour who signs for it. The neighbour is now holding your parcel. Nobody in the building thinks the neighbour owns it, and nobody would be confused if they tried to keep it.
A nominee signed for the parcel. Indian courts have said so repeatedly. The nominee receives the asset from the bank or the depository and holds it for the legal heirs — who are named in a will, or determined by statute if there is none.
Why the confusion is so expensive
The bank or depository is discharged once it pays the nominee. From its point of view the matter is closed. What follows — a nominee who believes the money is theirs, heirs who disagree, an asset already spent — happens outside the institution entirely, and resolving it takes years.
| Situation | What actually happens |
|---|---|
| Nominee named, will exists | Nominee receives, then distributes per the will. Clean |
| Nominee named, no will | Nominee receives, then must distribute per succession law to all legal heirs — frequently disputed |
| No nominee, will exists | Heirs claim with the will, plus a succession certificate or probate. Slow but resolvable |
| Neither | Succession certificate from a court, all heirs traced and consenting. Years, and legal costs |
| Nominee is one of several heirs | The commonest and worst case — the person holding the money is also a claimant |
What a valid will requires in India
- 1In writing, signed by you
No prescribed format, no legal language required. A clearly written document in plain English or any language you are comfortable in is valid.
- 2Two witnesses who are not beneficiaries
They must see you sign and sign themselves. A witness who inherits under the will can invalidate that bequest — so use a colleague or a neighbour, not your children.
- 3Registration is optional
An unregistered will is fully valid. Registering it at the sub-registrar's office costs a small fee and makes it considerably harder to challenge as a forgery — which is usually worth it.
- 4Stamp paper is not required
A will needs no stamp duty. Plain paper is fine, and the widespread belief otherwise stops a lot of people from ever writing one.
- 5Name an executor
The person who will actually carry it out. Choose someone younger than you, likely to be available, and tell them.
What to write down
- Everything, including what is small. Bank accounts, demat, mutual funds, EPF and PPF, property, jewellery, vehicles, and anything held jointly. The consolidated account statement you assembled earlier is the natural starting list.
- Digital assets and access. Which accounts exist, where, and how to reach them. Not the passwords in the will itself — that becomes a public document after probate — but a sealed note the executor knows about.
- Specific bequests, then a residuary clause. "Everything not otherwise mentioned goes to X" catches the assets you acquire after writing it, which is what stops the will going stale.
- A guardian, if you have children under eighteen. This is the part of a will that has nothing to do with money and matters more than the rest of it combined.
- Update it after any large change. A marriage, a birth, a death, a property purchase, a divorce. Rewriting is trivial; the latest valid will supersedes all earlier ones.
The sensible family
Your father, aged 68, has nominated your mother on every account. He mentions that "everything is taken care of, she is the nominee". There are three siblings, and no will.
A demat account names one son as nominee. The father dies without a will, leaving a widow and three children. Who owns the shares?
Aap ghar pe nahi the, courier ne padosi ko parcel de diya aur unhone sign kar diya. Kisi ko shak nahi ki parcel unka ho gaya. Nominee ne sirf sign kiya hai — maalik kaun hai, yeh will tay karti hai, aur will na ho toh kanoon. Insurance mein pati-patni, maa-baap ya bachche nominee hon toh baat alag hai.
- A nominee receives and holds; a will or succession law decides who owns.
- Insurance nominees who are spouse, parent or child are the one statutory exception.
- A valid will needs writing, your signature, and two non-beneficiary witnesses.
- No stamp paper is required, and registration is optional but worth doing.
- A residuary clause and a named guardian are the two most-skipped essentials.
Mark it done to track your progress through the curriculum.
Common questions
Short, direct answers to what people ask about this topic.
- does a nominee become the owner of the assets
- A nominee is the person a bank, depository or fund is authorised to hand the asset to on your death; a legal heir is the person entitled to own it. Indian courts have held repeatedly that nomination does not override succession — the nominee receives and holds the asset for whoever inherits under a valid will, or under the applicable succession law if there is no will. Life insurance is the one significant statutory exception.
- a person named on a bank or demat account to receive the assets on the holder’s death is called a
- Nominee. The nomination tells the institution who it may pay, and the institution is discharged the moment it pays that person — but the nominee then holds the asset for the legal heirs rather than owning it, unless they happen also to be the heir under the will or under succession law.
- how many witnesses are required for a will in india
- Two, and neither should be a beneficiary under that will. Both must see you sign and then sign themselves as attesting witnesses. A witness who inherits under the same will can put that particular bequest at risk, which is why the standard advice is to use a colleague, a neighbour or a family friend rather than your own children.
- does a will in india need stamp paper or registration
- Neither. A will attracts no stamp duty and is fully valid on plain paper, and registration at the sub-registrar’s office is optional rather than mandatory. Registration costs a small fee and makes the document considerably harder to challenge as a forgery, which is usually why people do it — but an unregistered, unstamped will that is properly written, signed and witnessed is a valid will.
- is an insurance nominee the owner of the claim money
- For a life insurance policy, a nominee who is the policyholder’s parent, spouse or child is a beneficial nominee under the Insurance Act and does take the claim amount in their own right. That is a narrow statutory carve-out written for insurance alone. It does not extend to bank accounts, demat holdings, mutual funds or property, where the nominee still receives the asset on behalf of the legal heirs.