Most people spend a great deal of time choosing investments and insurance policies, and almost no time on who will receive them. Yet when nominations are missing or out of date, families can face months of paperwork at an already difficult time.
Updating your nominations takes very little time. It is also one of the most caring financial tasks you can do.
Why nominations matter
A nominee is the person to whom an investment or policy is transmitted, or paid, in the event of your death. When a valid nomination is in place, the process is usually straightforward. Without one, your family may need to provide additional legal documents, such as succession certificates or probate, before they can access the money.
What's new for mutual funds and demat accounts
SEBI's revised nomination framework, in effect since 2025, made several useful changes:
- You can nominate up to ten people for a mutual fund folio or demat account, and specify the share each should receive.
- You need to give at least one identifier for each nominee (such as PAN, driving licence number or the last four digits of Aadhaar), along with their contact details.
- Nominations must be made by the investor personally, not by a power of attorney holder.
- Nomination is optional, but if you choose not to nominate anyone, you will usually be asked to confirm that choice.
Your checklist
Go through each of these and confirm a nominee is registered and up to date:
- Mutual fund folios: every folio, across every fund house
- Demat and trading accounts
- Bank accounts and fixed deposits
- Life insurance policies, including term plans
- Health insurance: check who is authorised on the policy and who would handle claims
- EPF and PPF accounts
- NPS account
- Employer benefits: gratuity and group insurance
Life changes that should trigger a review
- marriage or divorce;
- the birth or adoption of a child;
- the death of a nominee;
- a nominee moving abroad or changing contact details.
A nomination is not a will
This is a common misunderstanding. In many cases, a nominee receives the money as a trustee, and the legal heirs determined by your will or by succession law are ultimately entitled to it. Nominations and a will work best together: the nomination makes the transfer quick, and the will makes your intentions clear. For questions about wills and succession, please speak to a legal professional.
How we help
For our clients, checking nominations is a standard part of our reviews. We help you see which folios and policies are missing nominees, and we take care of the forms needed to update them.
If you are not sure where all your mutual fund investments are, a Consolidated Account Statement (CAS), available from the registrars CAMS and KFintech or from the depositories, lists all your folios in one place. It is a good place to start.
This article is for general information only and is not legal or tax advice.