Bangalore: Think before doing anything regarding financial security of your dependents it is better go for a legal advice . If we ask someone what is a nomination? Or who is a nominee? The answer will be instant and simple; nominee is a person whom we nominate to own our assets after our death. But this is not fully correct. Everyone is aware of nomination but what does it really mean from a legal point of view, very few are aware of it.

Nomination is a procedure done for the security of financial products or assets that you own and the person whom you nominate for these assets is the nominee. Your nominee will own your assets but he will get the custody to take care of your assets after your death. He will have the power to distribute your asset to your legal heirs whom you would have mentioned in the Will. Legal Heirs could either be your kids, mother or your father. If there are no legal heirs mentioned in your Will then your assets will be distributed according to the succession laws (According to this law after your death a nominee is only the caretaker of your assets not the owner).

Here are few ways your asset can be inherited by your nominee, listed by Sakina Babwani of Economic Times.

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