Bank: If the account holder dies without declaring a nominee, then who will get the money in the account?

Whenever anyone opens a bank account a demat account or an account for investment, then the option of adding a nominee comes in the process. The nominee is a kind of heir. Meaning, he is entitled to your things after you. In the case of bank accounts, if something happens to you. Any accident or something else, then in such a case the money in your account is given to the nominee. However, adding a nominee is not mandatory.

That is why many people do not add a nominee to their accounts. However, doing so is not right. If you add a nominee, then your money will reach the right person after you. If you do not add a nominee, then to whom will the money be given? You may have to get into legal complications regarding this. Let us tell you that if a nominee is not added to an account after death, then who gets the money and what is the process for this?

Who will get the money if there is no nominee?
If there is no nominee added to the account of an account holder and that account holder dies, then the money deposited in that account will be handed over to the legal heir of that account holder. If the account holder is married, then in such a case his wife, children, and parents are his legal heirs. If the account holder is not married, then his parents and siblings can claim his money.

How will the money be claimed?
Generally, if a nominee is added to the account, then after the death of the account holder, some documents have to be given to the nominee, and the money is transferred to him. But if there is no nominee, then the heir has to claim it. Some documents are also required for this, which include the death certificate of the deceased, photo of the legal heir, KYC, Letter of Disclaimer Annexure-A, and Letter of Indemnity Annexure-C.

Why is it necessary to add a nominee?

If there is no nominee in an account, then after the death of the account holder, a dispute may arise regarding the legal heirs. And it may take a lot of time to prove it, which may also cost a lot of money. Insurance companies may also have difficulty in giving claims because they do not know who the legal heir is. Therefore, it is right to add a nominee to the account. The family remains safe from problems in the future.
(PC: Google)