NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Basics of Estate Planning
Which of the following is true about the nomination facility in relation to a person's estate plan?
A nominee generally receives the asset on the holder's death and gives the institution a valid discharge, but legal heirs can still claim under succession law or the will. Nomination does not by itself replace a will or require registration.
- AA nominee always becomes the absolute owner of the asset, overriding the will
- BA nominee is generally a person who receives the asset on the holder's death, but legal heirs can still have a claim as per succession laws or the willCorrect
- CA nomination is valid only if registered with a sub-registrar
- DNomination makes a will unnecessary for all assets
Explanation
Nomination primarily lets the nominee receive the asset and give a valid discharge to the institution; it does not by itself always override succession law or a will, and legal heirs may claim from the nominee. Registration is not required, and a will remains useful.
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