Understand the importance of nomination and why having a nominee is crucial
22-May-2023 •Research Desk
Does one need a nominee in a bank account or any investment if the account is in joint names with provision 'anyone or survivor'? - Niranjan Doshi
Whether it is a bank account or an investment, one should have a nominee in place.
But for those unfamiliar with 'anyone or survivor' bank account type, let's briefly understand what it is.
What is 'anyone or survivor' bank account?
'Anyone or survivor' joint bank account is operated by more than two individuals (or account-holders), and any one individual can independently sign off on the banking transactions.
In case of unfortunate death of any account-holder(s), the final balance in the bank account with the interest, if any, can be paid to the surviving account-holder(s)
The surviving account-holder(s) are also allowed to operate the bank account after the demise of any account-holder(s).
How does nomination help?
Now in case there are no surviving account-holders (and the joint bank account did not have any nominee), the legal heirs will have to run from pillar to post to furnish all the necessary documents in order to claim the proceeds from the bank account.
Having a nominee safeguards you from all this hassle and ensures smooth transmission of the assets.
So, if the 'anyone or survivor' bank account has a nominee, the final balance in the account will be transferred smoothly to them, in case there are no surviving account-holders.