Pre-empt disputes between nominee, legal heirs by drafting a will

A nominee's job is only to hold a deceased's asset temporarily until the legal heirs claim it

Understanding the distinction between a nominee and a legal heir has become crucial, especially in the light of a recent Supreme Court (SC) judgement. The apex court ruled that being named as the nominee in share or debenture certificates does not by default entitle a person to inherit those assets.

Shashank Agarwal, advocate, Delhi High Court, says, “The Supreme Court has clarified that the nominee does not get absolute title to the shares. The absolute title to them shall vest only in the legal heirs.”

Nominee versus legal heir

The question that arises is, what’s a nominee’s role? Aaushi Doshi, associate partner, IndiaLaw