Generally, a succession certificate is not required if there is a valid registered nominee — but it depends on the situation. Key points • For banks, insurance, PF, mutual funds, etc. – The nominee can claim the money by producing the death certificate and identity/address proof. Most institutions release the amount to the nominee without asking for a succession certificate. • Nominee ≠ owner – A nominee is only a trustee or caretaker of the funds for the legal heirs, unless a specific law (like in Cooperative Societies Acts in some states) gives ownership rights. Legal heirs can still claim their share from the nominee. • When a succession certificate may still be needed – – If there is a dispute between nominee and legal heirs. – If the institution’s internal rules require it for higher-value claims. – If there is no clarity in the records about the nominee or the nomination is invalid. So, if there is a valid, uncontested nominee, the process is simpler and a succession certificate is usually not necessary. If disputes arise, the court-issued certificate becomes important.

Dear Client, This is an issue that brings to light a great deal of confusion. To that point the simple answer is -- in most cases yes ,a succession certificate is still required as the nominee is not the legal heir. Here is an in depth look at the key differences and legal principles which play into it. Nominee serves as a Trustee, not an Owner. A nominee serves as a custodian or a trustee of the assets. We put in the nomination facility as a convenient and easy solution which financial institutions like banks, insurance companies, or mutual funds may use to fulfill their responsibility in the case of an asset holder’s death. This also means they are able to transfer the funds to the nominee without going through a very long legal process. Also the nominee is required by law to hold the asset in trust and is responsible for passing it on to the proper legal heirs. The nominee does not in fact become the owner of the asset which is in their care unless also a legal heir as per the succession laws or named in the deceased’s Will. Legal Successor is the proper owner. The legal heir is the individual which the laws of succession (for instance the Hindu Succession Act, Indian Succession Act etc. or a valid Will says has the right to inherit a deceased’s assets. It is the legal heir which has the full right of ownership over the property and not the nominee. In the case of a missing Will, legal heirs are as per the related succession laws. Also to prove their claim on movable assets which include bank deposits, shares, and securities they usually require a succession certificate from an appropriate court. Practical Aspects and Outliers. For Bank Accounts, Deposits, and Securities: In some cases a succession certificate may issue even if we have a named nominee. Financial institutions may ask for the certificate to protect against future disputes and to see that the money goes to the right people. For Certain Assets (e.g., EPF, Pension): In certain cases for instance in the Employees’ Provident Fund (EPF) the nominee is the beneficial owner and is able to claim the funds directly. The law which applies to these specific assets may in fact override the general laws of succession. This though is not a universal rule. When Nomination and Legal Heirship Overlap: If at the time of death the deceased had named a single legal heir (for example a son or a daughter) the succession certificate may not be needed because there is no issue. But if there are many legal heirs and only one is named, the non named heirs can put forth a case and ask that the asset be divided as the succession laws state. This is when a succession certificate comes in to play to settle the issue. In the end we see that although a registered nominee may facilitate the transfer of assets between financial institutions what they may not do is in large part put an end to the issue of a succession certificate should a legal heir challenge the nominee’s right to be owner. Also it is best to have a will which in full detail outlines your wishes to avoid such issues. I hope this answer helps to resolve your queries. Don’t hesitate to reach out with any further questions. Thank you!