Why Your Nominee Choice Needs a Periodic Review

A common misconception is that a will covers everything and nomination updates are unnecessary. Gain explains that nomination and a will serve different functions. The nominee acts as a custodian for the financial institution to process the claim. The will determines final distribution of assets to legal heirs. Without a will, succession laws decide who inherits. The nominee is not necessarily the owner; the rightful heirs have a claim.

The Mint article recommends reviewing nominations at least once a year or after any significant personal change. Updating can be done through the institution's online portal or a physical form. For EPF, the process is similarly straightforward.

Gain suggests that a periodic check of your nominee list is a small step that can save your family time and legal trouble.