Nomination vs. Will

Do We Really Need a Will if Nominations Are Already in Place?

Many of us feel secure once we have nominated someone for our bank accounts, investments, and insurance policies thinking that everything will automatically be taken care of after we pass away. This sense of relief can be misleading 

Biggest Myth among people is that “Nominations and Wills are the same.” 

This is where most people are mistaken. Nominations and Wills are not the same thing. A nomination is like saying, ‘Here, you can receive this asset on behalf of my family.’ But when it comes to Drafting Wills and ensuring proper succession planning, the approach needs to be much deeper. A nomination only ensures immediate access, while a Will provides long-term clarity on who should inherit and in what proportion. Succession planning is about removing confusion, avoiding disputes, and making sure your legacy is protected exactly the way you want. That’s why drafting a Will is more than paperwork.  

Let’s Understand How Will & Nominations are Different from Each Other: 

A nomination means choosing someone (a nominee) to receive your money from assets like bank accounts, mutual funds, or insurance in the event of your death. While ‘Will’ is a legal document where you clearly specify who should inherit your assets after your death. 

Nomination Process for Assets

1. List All Assets

   – Include all your bank accounts, fixed deposits, mutual funds, insurance policies, Demat accounts, provident fund, property or society accounts. 

2. Choose Nominee(s’)

   – Choose who will receive the asset in case of your death 

   – You can choose one or multiple nominee (in some assets like mutual funds you can choose up to 3 nominees). 

   – If nominee is a minor you will have to nominate a guardian. 

3. Collect Nominee Information

   – Nominee full name, date of birth, relationship, address, ID proof. 

   – Guardian information if nominee is a minor 

4. Fill out Nomination Form

   – Every asset has its own nomination form (banks, AMCs, insurance companies, Demat DPs, etc.) 

   – At present, many of the banks/AMCs/insurers offer **e-nomination** via internet banking or MF/insurance portal. 

5. Submit and Keep Records.

   – Submit the nomination form online or in person at your bank/AMC/insurer. 

   – Keep a copy of the acknowledgement/confirmation for your records. 

6. Check/Update

   – After significant life events such as marriage, children, changing dependents issues update your nominations. 

 Process of Will Writing: 

1. List Assets & Liabilities – Note down all movable and immovable assets (property, bank accounts, investments, insurance, etc.).
2. Decide Beneficiaries – Clearly mention who should receive what portion of your assets.
3. Appoint an Executor– Choose a trusted person who will ensure your Will is carried out.
4. Nominate Guardians (if required) – If you have minor children, appoint guardians for them.
5. Draft the Will – Write it in clear language (handwritten or typed) with date and place.
6. Sign in Presence of Witnesses – The Will must be signed by you and attested by at least two witnesses.
7. Safe Keeping – Keep the Will in a safe place, inform executor/close family about its existence.
8. Registration – Though not mandatory, registering the Will with the sub-registrar adds extra-legal validity.

“A Will does not necessarily require large legal formalities or registration. A Will on plain paper is valid in India if it meets a few conditions. 

All you have to do is declare your assets, make decisions about who gets what, and write it down in your own words – sign it yourself, have at least two witnesses who are not beneficiaries, and you are done. There is no stamp paper required, and no need for elaborate, exact formalities. 

Registration provides more security, but an unregistered Will on paper has complete validity if properly executed and witnessed. Having a clear description of your wishes is most valuable – the Will itself does not have to be complicated.” 

Let’s understand with an Example: 

Mr. Rajesh Sharma is a 60-year-old retired officer. He has worked hard throughout his life and built valuable assets, including a house, a healthy bank balance, mutual funds, and life insurance. He has two grown children, Anita and Rohit, but unfortunately his wife has passed away last year .  

Mr. Sharma has not made any nominations or written a Will. What does this mean? In the event of his death, his family will have to navigate the process of succession laws. His assets won’t automatically go to Anita and Rohit without legal steps.  

Let’s understand with different scenario and their Outcomes 

Consider Mr Rajesh’s situation again: He has accumulated a lifetime of assets but has no nominations and no Will. This leaves his family facing unnecessary stress, delays, legal complications, and potential conflicts. 

Now let’s change the scenario – if his wife was with him and he had neither a Will and no nominations, under succession law, the estate would be divided amongst his wife and both children equally. Three claimants instead of two. This may sound straightforward on paper, but in practical terms, delays with documentation or disputes can spring up in real life, particularly if a family member believes they are entitled to more. This just goes to show how critical it is to seek personalized advisory for Will from our advisory. With the right procedures in place from our advisory in terms of drafting Wills and succession planning, Mr. Sharma can legally have his wealth flow to the people he wants without legal limbo, without argument and without confusion. This is where the insight of a trusted legal advisory firm can assist you. 

This is why personalized advice for creating a Will and succession planning is crucial. With the right support from a trusted financial & legal advisor, individuals like Mr Sharma can ensure that their wealth is passed on smoothly, exactly as they intended.  

After all, Will planning is not about how much you own; it is about how thoughtfully you prepare to pass it on.