Hi there,As Indian citizens, we must be very well aware of the nominee rights in bank account, not just for the sake of money but also for the sake of security. I faced a crucial situation of such kind when my father expired a few years back. It was then that I realised what happens if there is no nominee in bank account. I would not wish for anyone to go through the difficulties we went through. And that is why I am going to tell you exactly what the rights of nominee in bank account are and what happens if there is no nominee in bank account.
What is Nomination for a Bank Account?In banking terms, a nomination refers to an account holder's power to select one or more people to receive money in the event of the account holder's death. If a nominee exists, the bank will transfer the funds to the nominee's account without requiring a court order, succession certificate, or letter of administration.Why nominate someone?In the tragic event of one's death, one's family/close ones must cope with the loss in a very painful and difficult manner. Furthermore, whether we want it or not, financial security and resources are required for the surviving partner or close family members. When a nomination is explicitly stated in the account or folio, all banks and financial institutions have standard and simpler protocols for resolving death claims.In the absence of a nomination, the procedure of settling a death claim may necessitate a number of documents, including death certificates, succession certificates, a will, or a court order. Although it appears straightforward on paper, it is a long and drawn-out process in real life, and it is not a situation in which you would want to place your loved ones, who are already in an extremely trying circ*mstance.What happens if there is no nominee in bank account?In such cases, the legal heirs need to get an affidavit from their nearest court and submit the ID proof of the heir they want to get the deposits of the account holder transferred to and also attach the death certificate of the account holder.I hope now you understand the nominee rights in bank account and why it is so important to have a nominee for your bank account.Get legal assistance on NoBroker on such grim matters from the expert advocates and get your paperwork done without any hassle.Read More:How Many Nominees in Bank Account?Is Nominee a Legal heir?
