NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Basics of Estate Planning
Ms. Anjali Mehta, a Hindu, nominated her brother in her mutual fund folio and bank account, and her will leaves all assets to her daughter. After Anjali's death, her brother claims the assets as the nominee. Which view is most consistent with the prevailing legal position?
Under the prevailing position, a nominee is only a custodian who receives the asset for the legal heirs or the will beneficiaries. So Anjali's daughter, named in the valid will, is the rightful owner, and the brother as nominee does not override the will.
- AThe nominee generally holds the assets as a trustee for the legal heirs or will beneficiaries, so the daughter under the will is the rightful ownerCorrect
- BThe nominee becomes absolute owner as nomination overrides the will
- CThe nominee and the daughter share equally by default
- DThe asset lapses to the fund house
Explanation
The usual position, as taught at this level, is that a nominee receives the asset to hold on behalf of those entitled under the will or succession law, so the nomination does not override a valid will. Equal sharing and lapse have no basis.
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