Banking: The account holder dies, there is no nominee's name in the bank; then who will get the money from the account?

Whenever we open a bank account, demat account, or any other financial account for investment, there is an option to add a nominee. This means that if something untoward happens to you, who will get the money in your account? Since adding a nominee is not mandatory, many people ignore it or put it off carelessly.

But, it is very important to have a nominee in every financial account, so that in case of your death, your money can go to your rightful heir. Let us know why it is necessary to appoint a nominee and if there is no nominee, then who will get the money deposited in the account and what needs to be done for that.

Why is it necessary to appoint a nominee
If an account holder has appointed a nominee for all his financial accounts, then in the event of his death, the entire money will go to the nominee. If you have appointed more than one nominee, then all of them will get equal money. Many provide the facility of appointing more than one nominee. Also, you can decide how much share should be given to which nominee. This method is also very good because it reduces the possibility of disputes in the family regarding the distribution of money later.

If there is no nominee, who will get the money
If a person has not appointed a nominee for the bank account, then after his death the money will go to his legal heir. In the case of a married person, the legal heirs are the wife, children, and parents. At the same time, the parents or siblings of an unmarried person can claim the money.

How will the money be received if there is no nominee
If the account holder has not appointed anyone as a nominee, then the money will be deposited in the account of his legal officer. For this, the legal heir will have to bring some important documents. These will require the death certificate of the deceased, photo of the legal heir, KYC, Letter of Disclaimer Annexure-A, and Letter of Indemnity Annexure-C.

Disadvantages of not having a nominee in the bank
The account can be closed on the death of the account holder and the money can be deposited in the government treasury.

On the death of the account holder without a nominee, there can be a dispute among the heirs as to who will be the owner of the account.

The process of proving the legal heir can also be a huge waste of time and money.

On the death of the account holder without a nominee, the legal heirs may have to pay tax on the money in the account.

It can be difficult to claim insurance without a nominee, as the insurance company will not have the information about the nominee.

It can also be difficult to claim pension and other benefits. Court action may also be required.

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