Nominee vs Beneficiary: The Difference That Trips Up Most Families

Many Indians assume that naming a nominee on a bank account, mutual fund or insurance policy decides who finally gets the money. It doesn't.

• A nominee is only a custodian — they receive the asset and must pass it to the legal heirs.
• Your Will decides the actual beneficial owner.
• Where your nominee and your intended beneficiary differ, disputes follow.
• Best practice: align nominations with your Will, and record both.

The Supreme Court has repeatedly confirmed that a nominee is a trustee, not the owner. Your Will is what truly controls succession.

This article is general information, not legal advice. For complex estates, consult a qualified professional.