I have a nomination and joint assets — do I still need a Will?

प्रज्ञान — the means of wisdom. "I have a nomination in place. I hold assets in joint name. Do I still need a Will?"

Anyone who owns an asset should complete nominations for all of them — this should not be optional. But one must understand that a nominee is a mere custodian and may not be the ultimate beneficial owner.

For example, most of us nominate someone for our bank accounts. On the account-holder's death, the bank hands the proceeds to the nominee, on the basic assumption that the responsibility of identifying the ultimate beneficiaries lies with that nominee. If you have executed a Will and the beneficiary of that account is someone other than the nominee, the nominee is responsible for identifying the executor or beneficiaries of the Will.

Do the rights in a property pass to the nominee or to the successor? A division bench of the Bombay High Court, comprising Justice Oak and Justice Sayed, upheld the rights of successors over nominees, stating that nominees are appointed only to ensure the subject of the nomination is protected until the legal heirs take steps to claim their rights.

In 2016 the Bombay High Court settled the nominee-versus-legal-heir position for shares of an Indian company, holding that a nomination does not override the laws of succession. A nomination merely protects the estate until the legal representatives can succeed to it. So the nominee of company shares is not the legal owner — the legal heirs of the deceased shareholder have the rightful claim.

What about jointly-held assets?

You may hold your home jointly with your spouse and assume that, on your death, it automatically becomes theirs. That is not true. If a husband dies intestate (without a Will), his share devolves on his surviving Class-I heirs — wife, children and mother — in equal proportion. If his mother then also dies intestate and he has siblings, her share devolves on them, making the siblings beneficiaries of his estate.

It is always advisable to write a Will covering your wishes, so the rightful beneficiaries receive their benefits. Though registering a Will is not compulsory in India, we strongly recommend it — to avoid disputes should the original be lost or damaged, since a certified copy can always be obtained from government records.