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NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Tools for Estate Planning

Caselet: Mrs. Kavita Rao, aged 70, has a bank FD of Rs 40 lakh and a house. She wants her son to inherit the FD, but wishes to avoid delays at her death and retain full control while alive. Which bank-level arrangement best serves this specific aim?

Adding a nominee to the FD lets the bank pay out quickly and lets Mrs. Rao retain control. Because a nominee may hold the money for the legal heirs under succession law, she should also have a Will matching the intent. Gifting loses control and intestacy is slow.

  1. AAdd a nominee to the FD, noting that a nominee under bank deposit rules may be only a custodian in some cases, so a Will should still back itCorrect
  2. BGift the FD to her son now and lose control
  3. COpen the FD in a minor grandchild's name
  4. DRely on intestate succession without any documentation

Explanation

A nomination lets the bank pay the depositor's claim quickly after death while the depositor keeps control in her lifetime. Nomination primarily gives a valid discharge to the bank and does not always override succession laws, so a Will supporting the same intent avoids conflict. Gifting loses control, and intestacy causes delay.

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