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

Ms. Kavita Rao made a nomination on her mutual fund folio in favour of her brother, but her Will leaves all assets to her daughter. From an estate planning view, what is the most appropriate advice?

The adviser should align the nomination with the Will. A nominee commonly receives assets only as a custodian for the rightful heirs, so mismatched documents invite disputes. Aligning them reflects the client's real intent and avoids confusion.

  1. AAlign the nomination with the Will, since the nominee is generally a person who receives the units on behalf of legal heirs and conflict can lead to disputesCorrect
  2. BIgnore the Will because the nomination always overrides it completely
  3. CCancel the Will because the nomination is final
  4. DNominate both the brother and the daughter equally to avoid any dispute

Explanation

Nomination and Will can conflict, and the nominee may be treated as only a custodian for the legal heirs for many assets. Advisers should align the two to prevent disputes. Claiming nomination always overrides the Will is not safe advice, and splitting equally does not reflect her wishes.

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