{"id":12633,"date":"2023-05-08T23:33:41","date_gmt":"2023-05-08T18:03:41","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=12633"},"modified":"2023-05-08T23:33:57","modified_gmt":"2023-05-08T18:03:57","slug":"nominee-vs-legal-heir","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/nominee-vs-legal-heir\/","title":{"rendered":"Nominee vs Legal Heir &#8211; Definition, Difference, and More!"},"content":{"rendered":"\n<p>Money matters can often lead to conflicts, especially when it comes to inheritance. To explain the concept of nominee vs legal heir, here I&#8217;ll take the example of a hypothetical character called Krrish, an IT professional who invested in various financial assets during his lifetime. His sudden demise left her family in a state of despair and conflict; who will inherit his assets? If Krrish had specified in his will, the conflict due to the mismatch between the nominee and the legal heir would never have occurred.&nbsp;<\/p>\n\n\n\n<p>This curious case of inheritance raised some pertinent questions regarding inheritance laws in India. In this blog, we will shed clarity on the matter and what will happen if there is a conflict between &#8211; the nominee and vs. legal heir.&nbsp;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/nominee-vs-legal-heir\/#Who-is-the-nominee\" title=\"Who is the nominee?\">Who is the nominee?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/nominee-vs-legal-heir\/#Who-is-a-legal-heir\" title=\"Who is a legal heir?\">Who is a legal heir?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/nominee-vs-legal-heir\/#Nominee-vs-Legal-Heir\" title=\"Nominee vs Legal Heir\">Nominee vs Legal Heir<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/nominee-vs-legal-heir\/#Who-will-inherit\" title=\"Who will inherit?\">Who will inherit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/nominee-vs-legal-heir\/#FAQs\" title=\"FAQs\">FAQs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/nominee-vs-legal-heir\/#Are-the-legal-heir-and-nominee-the-same-thing\" title=\"Are the legal heir and nominee the same thing?\">Are the legal heir and nominee the same thing?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/nominee-vs-legal-heir\/#Can-a-nominee-challenge-the-will\" title=\"Can a nominee challenge the will?\">Can a nominee challenge the will?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/blog\/nominee-vs-legal-heir\/#What-does-the-term-%E2%80%9Cnominee-in-property%E2%80%9D-mean\" title=\"What does the term &#8220;nominee in property&#8221; mean?\">What does the term &#8220;nominee in property&#8221; mean?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who-is-the-nominee\"><\/span><strong>Who is the nominee?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A nominee is a representative chosen by an individual to receive their assets or funds in the case of their demise. A nominee has no legal right to the assets and has to oblige to the transfer of wealth according to legal heirs stated in the individual&#8217;s last registered will.&nbsp;<\/p>\n\n\n\n<p>Also, the nominee has to be a family member, as any nomination other than a family member is deemed invalid.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who-is-a-legal-heir\"><\/span><strong>Who is a legal heir?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A &#8220;legal heir&#8221; refers to a person named in the deceased&#8217;s legally-binding will and is entitled to inherit their assets and property. An individual can appoint one or more legal heirs as the primary inheritor.&nbsp;&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Basis<\/strong><\/td><td><strong>Nominee<\/strong><\/td><td><strong>Legal Heir<\/strong><\/td><\/tr><tr><td><strong>Meaning<\/strong><\/td><td>Refers to the person nominated to act as a custodian<\/td><td>Refers to the successor named in the deceased&#8217;s will<\/td><\/tr><tr><td><strong>Role<\/strong><\/td><td>Acts as a trustee holding the assets in trust<\/td><td>Acts as a beneficiary entitled to the assets<\/td><\/tr><tr><td><strong>Indicates<\/strong><\/td><td>Represents the hands authorised to receive the asset<\/td><td>Represents the hands entitled to own the asset<\/td><\/tr><tr><td><strong>Determined by<\/strong><\/td><td>Based on the nomination made by the individual<\/td><td>Based on the will or provision of succession law<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Nominee-vs-Legal-Heir\"><\/span><strong>Nominee vs Legal Heir<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The most common differentiation between a nominee and a legal heir is &#8211;&nbsp;<\/p>\n\n\n\n<ol><li>The nominee is chosen by the individual, while the legal heir is designated by law or by the individual&#8217;s will.<\/li><li>The nominee holds the property in trust for the legal heir, while the legal heir has actual ownership of the property.<\/li><li>The nominee has limited rights to the assets, while the legal heir has complete rights to the assets.<\/li><li>Nomination is a simpler and quicker process compared to legal inheritance, which involves probate and legal proceedings.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who-will-inherit\"><\/span><strong>Who will inherit?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The nominee is merely a trustee who holds the assets for the legal heirs after the individual&#8217;s demise. But who will inherit different asset classes &#8211;&nbsp;<\/p>\n\n\n\n<ol><li><strong>Deposits:<\/strong> The legal heirs of the deceased individual are entitled to inherit the deposits made in bank accounts such as savings accounts, fixed deposits, recurring deposits, etc.<\/li><li><strong><a href=\"https:\/\/www.tickertape.in\/blog\/mutual-funds\/\">Mutual funds<\/a>:<\/strong> The mutual fund units held by the deceased individual will be transferred to the legal heirs after completing the necessary documentation.<\/li><li><strong>Listed shares:<\/strong> The legal heirs of the deceased individual will inherit the listed shares held by the individual, as the rules of nomination can&#8217;t override the laws of succession.<\/li><li><strong>Employee Provident Fund (EPF):<\/strong> As per the EPF rules, the EPF balance of the deceased will be transferred to the nominee.&nbsp;<\/li><li><strong>Public Provident Fund (PPF):<\/strong> The nominee will get custody of the PPF balance, and the legal heir will be entitled to own the money.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><strong>FAQ<\/strong>s<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1683568790337\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Are-the-legal-heir-and-nominee-the-same-thing\"><\/span><strong>Are the legal heir and nominee the same thing?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>No, the legal heir and nominee are two separate entities. While the nominee can also be the legal heir if nominated for wealth\/assets and listed as the legal heir in the will, they are still distinct roles with different responsibilities.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1683568798053\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Can-a-nominee-challenge-the-will\"><\/span><strong>Can a nominee challenge the will?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>No! As per the Indian Court, the laws of succession take precedence over a nomination in India.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1683568806976\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What-does-the-term-%E2%80%9Cnominee-in-property%E2%80%9D-mean\"><\/span><strong>What does the term &#8220;nominee in property&#8221; mean?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>A nominee in property refers to a person appointed by the asset owner to act as a caretaker or agent for the asset. While the nominee is not the actual owner of the property, they are legally obligated to transfer it to the rightful legal heirs.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Nominee vs legal heir? Who has the right to inheritance? Read to find out who will inherit fixed deposits, listed shares, mutual funds, etc., after the owner&#8217;s demise.<\/p>\n","protected":false},"author":131,"featured_media":12289,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[1748],"tags":[],"acf":[],"modified_by":"Harshit Singh","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2023\/03\/16-Mar-2023-Best-Large-Cap-Stocks-to-Invest-in-India-2023-44.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/12633"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/131"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=12633"}],"version-history":[{"count":2,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/12633\/revisions"}],"predecessor-version":[{"id":12635,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/12633\/revisions\/12635"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/12289"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=12633"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=12633"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=12633"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}