All About Modifying Financial Nominations

By BankBazaar | June 20, 2018

Let’s give you a quick guide to modifying nominations on your accounts or investment portfolios.

All About Modifying Financial Nominations

Let’s give you a quick guide to modifying nominations on your accounts or investment portfolios.

What is a nomination?

A nomination is simply an instruction from the account holder or investor to the financial institution or bank that details who will manage the account or receive the monies held in the account on the demise of the account holder. It could be a Savings Account, Fixed Deposit, Mutual Fund investment, Life Insurance policy, etc.

Additional Reading:  5 Golden Rules of Investing

Can nominations be changed?

Why, yes. Nominations can be changed anytime during the lifetime of the account holder or investor. There is no limit to the number of times a nomination can be modified.

Additional Reading: Fixed Deposit Nominees

What is the format of nominations?  

Most investment companies follow a specific format to record nominations or any change in nominations. Wondering where you can get the format of the nominations? Try the bank’s branch or you can also get it online. It’s that simple.

Making a nomination? Ink it

Any change to the nomination on accounts or investments will be confirmed only when all account holders affix their signatures to the nomination forms. Irrespective of the mode of account operation, a joint account or investments held by two or more investors will need all the account holders’ signatures.

Are there any exceptions?

If you hold someone’s Power of Attorney, or in case you are the karta of a Hindu Undivided Family (HUF), you cannot make or change nominations. This also applies to investments made by someone on behalf of corporate firms.

How long is a nomination valid?

Nominations are valid until such time that it has been amended by the account holder. Nominations can be changed at any time during the lifetime of the investor or account holder.

Who can be appointed as nominees?

Any can be appointed as nominees, even Non-Resident Indians and minors. The payouts will be processed according to predefined procedures as applicable.

In case a minor is appointed as a nominee, the name of the minor’s guardian and the minor’s date of birth should be provided on the nomination forms.

Additional Reading: Plan Your Personal Finances Before You Plan Your First Child

Division of proceeds

When you make changes to the nominations, you can amend the nominee’s name(s) and the division of the account between several beneficiaries, if there are more than one. When amending the nomination details, you can also change the division and allocation of proceeds.

Now that’s your guide to making modifications to nominations on financial investments and accounts.

Additional Reading: 10 Financial Mistakes You Will Regret At Age 50

Haven’t made any investments yet? Now is a good time to start!

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Category: Investments
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