Facilitates smooth transfer of funds from financial institutions to the nominee upon death:
Feature |
Nomination |
Will |
Purpose |
Facilitates smooth transfer of funds from financial institutions to the nominee upon death. |
Determines the rightful owner of assets/funds after the person's death. |
Legal Standing |
Nomination is a secondary document. |
A will is a legally binding document that overrides nomination. |
Effect |
Nomination ensures funds reach the designated nominee. |
The will determines who ultimately inherits the assets. |
Relationship to Succession Acts |
Nomination is secondary to succession laws (e.g., the Hindu Succession Act). |
The will overrides succession laws. |
Process |
The simple process of designating a nominee on financial instruments. |
Requires drafting a legally valid document and following specific procedures. |
Also Read: Should NRIs make separate Wills for assets in different countries?