![In case of naming a minor as a nominee, a guardian should also be appointed to look after the property till they attain legal age. In case of naming a minor as a nominee, a guardian should also be appointed to look after the property till they attain legal age.](https://images.news18.com/ibnlive/uploads/2021/07/1627283897_news18_logo-1200x800.jpg?impolicy=website&width=510&height=356)
In case of naming a minor as a nominee, a guardian should also be appointed to look after the property till they attain legal age.
Having a nominee also ensures that the property is not left unclaimed.
While making any kind of investment, or purchasing a property, a person can specify his/her nominee. The nomination facility allows the individual to name a person who will have the right to claim the investment or property in case of his/her death. While making a nominee is a common practice, it is not mandatory in most cases. Now the question arises whether you should make some of your nominee?
Making someone your nominee ensures hassle free transfer of your assets in case of your death. However, the nominee is different from the legal heir.
In the case of immovable property, a nominee is merely a trustee who is entitled to receive income on behalf of the legal heirs of the owner of the property. In other words, the nominees do not have absolute ownership of the property. They are only custodians as long as the heir claims it. The distribution of property to the legal heirs of the original owner is done on the basis of laws of succession or will.
Having a nominee also ensures that the property is not left unclaimed. Nominee can be family, relative or any other person whom the original owner trusts. It is not necessary to mention the name of the nominee while purchasing the property. The appointment can be made at any time and can be withdrawn as per the decision of the original owner.
Difference Between Nominee and Legal Heir
The nominee may or may not be the legal heir to the property of a person. For example, if a person nominates his elder son as nominee in a property case and has not left any will regarding distribution, then in this case, that person is the nominee as well as the heir. Will happen. However, if the person has left a Will where he specifies the distribution of assets, then the nominee will be just a carer.
A person can nominate anyone as his legal heir for self acquired property but this rule does not apply to ancestral property. In such a situation, the rules of succession apply in the division of such property.
In case of naming a minor as a nominee, a guardian should also be appointed to look after the property till they attain legal age.
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