We are living in unprecedented times and all of us have been directly or indirectly affected by the impact of Covid 19 Pandemic.
We have been witness to the tremendous pain of people who have lost their loved ones recently. We have also seen some of them going through hassles of running to lawyers and courts where their loved ones left their financial assets without nomination/wills.
All financial institutions offer a standard and simple process for settling death claims where nomination is updated. However, in the absence of nomination, the process of settling a death claim can be extremely onerous. The requirements can range from succession certificates, wills, or even court orders. These are long-drawn and strenuous requirements and none of us would want our loved ones to go through them.
A lot of us miss to nominate and this can lead to unwarranted hassles for our loved ones when we are not around.
Hence every time we invest in any financial asset, be it a fixed deposit, mutual fund, insurance, share or PPF or even opening a new account, fill up the nomination form. Most nomination forms are simple one-pager documents that require the name, date of birth, and address of the nominee. In case you wish you appoint a minor as a nominee, make sure you appoint a guardian and provide all the required details of the guardian.
It is advisable to take some time out to check whether all your investments have nominations. This would be the biggest help that you can render to your loved ones now!!
Namrata Singh is Certified Financial Planner with more than 13 years of experience in banking and wealth management. Views are personal.
