Who can be nominee in bank account?

Most banks generally force you to make a nominee in the banking account when you open it. If your account is already with the bank and you haven’t added a nominee yet, it’s mandatory to add a nominee. A bank account nominee is a person who has been authorised to all of the account holder's funds upon their death. As the trustee of the legal heirs, the nominee serves as a trustee and gets the declared benefits from the bank. If the nominee and the beneficiary mentioned in the will are not the same people, a legal struggle may be necessary to resolve the situation. Let’s see who can be nominee in bank account.

Guide on who can be a nominee in a bank account:

1) Any individual who the account owner trusts can be named as a nominee, whether it be a member of the family, children, spouse, relative, colleague, or anybody else. 

2) Whereas if the nominee is not really the victim's legitimate heir, he is not entitled to the account's funds. 

3) A nominee's job or responsibility becomes acting as a trustee and transferring the compensation to the legal heirs of the dead account holder. 

4) In a bank account, only one person can serve as a nominee. Nominations from more than one person are not permitted. 

5) If you have various different bank accounts with the same name, you can add different nominees.

6) You must designate a guardian if the nominee is a minor. If the nominee is a minor at the time of your death, the bank will be required to give over all the funds to the guardian.

7) You can have two nominees in jointly controlled 'locker' accounts.

Who can be a nominee in bank account and why it's important?

According to the Reserve Bank of India, there seem to be crores of unrecognised assets in several banks across India. This is because there were no bank nominees for these accounts, and recovering the money without a nomination is exceptionally hard. If the nominee is not mentioned in the bank, the family would suffer a sudden loss of financial security. This problem can be solved by simply naming the spouse or a family member as the bank nominee. As a result, a bank nominee is essential in your bank account, ensuring that your dear ones' rights are respected in the event of your death.

Now you know who can be nominee in bank account.