When someone in the family passes away, the grief comes with a pile of paperwork: bank accounts, insurance, mutual funds, provident fund, property. In many homes only one person knew where everything was. The family then spends months hunting for statements, passwords and forms. A little preparation today turns that ordeal into a few phone calls. It is one of the kindest things you can do for the people you love.
Nominee, legal heir — what is the difference?
A nominee is the person to whom the fund house transfers your units after your death. With a valid nomination, the transfer — called transmission — is usually quick and needs only a few documents.
A legal heir is the person entitled to your assets under your will or, without a will, under the succession law that applies to you. A nominee holds the units on behalf of the legal heirs if they are different people. That is why a nomination and a will work together: the nomination makes the transfer easy, and the will decides who finally owns the money.
How nomination works for mutual funds today
- A new folio needs either nominees or a signed declaration that you choose not to nominate. Older folios without a nomination are no longer frozen for this, but they should still be updated — the cost of skipping it falls on your family.
- Under SEBI’s revised rules, you can name up to 10 nominees on a folio and set the percentage each should receive.
- Nominations can be added or changed online through the fund house, the registrar (CAMS or KFintech) or your distributor at any time.
- For joint folios, units first pass to the surviving joint holders; nominees come in only after all holders have passed away.
- Your nominee details should include contact information, so the fund house can reach them if needed.
What a claim needs
With a nominee in place, the usual documents are:
- A transmission request form, signed by the nominee.
- A copy of the death certificate.
- KYC of the nominee — PAN, address proof and a photograph, if not already KYC-compliant.
- A cancelled cheque or bank statement of the nominee’s account.
Without a nominee, the legal heirs may need additional documents — an indemnity, a no-objection from other heirs, and above a certain value a succession certificate or probate. That can take many months. A one-minute nomination today avoids all of it.
The family binder: one place for everything
A family binder — a physical folder, a protected digital file, or both — answers the question every family asks in a crisis: what do we have, and where is it? It should list:
| Section | What to record |
|---|---|
| People | Your distributor, bank relationship manager, insurance agent, chartered accountant and lawyer, with phone numbers |
| Bank accounts and deposits | Bank, branch, account type, last four digits, nominee |
| Mutual funds and shares | Fund houses, folio numbers, demat account, registrar, nominee on each |
| Insurance | Policy numbers for life, health and vehicle; sum assured; nominees; claim helpline |
| Retirement accounts | EPF UAN, PPF account, NPS PRAN, gratuity details |
| Loans | Home, car or personal loans; lender; outstanding balance; linked insurance |
| Property and valuables | Property documents’ location, locker number and key location, gold |
| Will and instructions | Where the will is kept, executor’s name, wishes about funeral and donations |
| Digital life | Which email and phone number are linked to which account — but never write passwords or PINs in the binder |
Our Family Emergency & Legacy Binder is a printable template with all these sections ready to fill.
A one-weekend plan
- Saturday morning: download your Consolidated Account Statement (CAS) to see every mutual fund folio in one place. Check the nominee status of each.
- Saturday afternoon: update missing or outdated nominations online, or ask us to do it.
- Sunday morning: fill in the binder sections above, one at a time.
- Sunday afternoon: sit down with your spouse or an adult child and walk them through it. Tell them where it is kept.
- Every year: update the binder when you open or close an account, and review nominees after any marriage, birth or death in the family.
Common mistakes
- Nominating a minor without a guardian. If your nominee is a child, name a guardian too.
- Different nominees everywhere by accident. Decide your intention once and apply it consistently, alongside your will.
- Old mobile numbers and emails on folios. If your registered phone number no longer works, your family may not receive vital messages. Update contact details with the KYC registration agency and fund houses.
- Keeping it secret. A binder nobody knows about does not help.
Frequently asked questions
Is a nomination enough without a will?
Not always. A nomination makes the transfer easy, but the nominee may be legally bound to share the assets with all legal heirs. A simple registered will avoids disputes.
Can I nominate my spouse for some folios and my children for others?
Yes, and with multiple nominees you can split one folio by percentage. Make sure the overall result matches what your will says.
We check nominations for every client during the yearly review. If you would like us to check yours, message us on WhatsApp.
Figures above are illustrations based on assumed rates of return and are not a promise or guarantee of future returns. Mutual fund investments are subject to market risks, read all scheme related documents carefully. WishWiseWealth is an AMFI-registered Mutual Fund Distributor (ARN-188221).