Definition (EN):
A Nominee is a person or entity appointed to act on behalf of someone else, especially in financial or legal matters. In the banking or insurance context, a nominee is the person designated to receive the benefits or assets (like bank account balance, insurance payout, or investments) in case of the account holder’s or policyholder’s death.
Key Points:
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A nominee is not the legal heir by default but a trustee or custodian of the asset until it is legally transferred to rightful heirs, depending on local inheritance laws.
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Nominations are commonly made in:
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Bank accounts
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Life insurance policies
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Mutual funds
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Employee benefit plans (like pensions or gratuity)
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Example:
If a person has a life insurance policy and nominates their spouse, the spouse will receive the insurance money if the policyholder passes away.