If you are a Serving, Veteran or an Ex-Serviceman (ESM) of the Indian armed forces, you would have invested your money in various financial instruments, such as bank accounts, insurance policies, shares, mutual funds, PPF, EPF, or locker. You want to ensure that your assets are safe and secure and that they are transferred to your loved ones in case something happens to you.
For this purpose, you need to appoint a nominee who can act as your representative and take care of your assets after your death. “A Nominee is a person who is authorized by you to collect your assets from the financial institutions and distribute them to your legal heirs as per your instructions” it can also be called as beneficiary. In this article, we will discuss why nominee updation is important for veterans and ESM, and how it can benefit them and their families.
What is Nominee Updation and Why is it Important for Serving, Veterans and ESM?
Nominee updation is the process of updating or changing the details of your nominee in your legal and financial documents. You may need to update your Beneficiary in case of any change in your personal or family situation, such as marriage, divorce, birth of a child, death of a nominee, etc. You may also need to update your Beneficiary if you want to change your preference or wish regarding your assets.
Beneficiary updation is important for veterans and ESM because it can make the process of transferring your assets easier and faster for your family in case of your death. It can also avoid disputes and conflicts among your heirs or claimants of your assets. It can also prevent your assets from being frozen or seized by the authorities or creditors in case of any legal issues.
Nominee updation is important for various legal and financial documents, such as:
Bank accounts: A nominee can access your bank account and withdraw the money without any hassle. The nominee can also close the account and transfer the balance to your heirs. If there is no Beneficiary, the bank may require a succession certificate or a legal heir certificate from the court to release the funds.
In many cases the pensioner has a single account and the nominee is not filled up by the individual at the time of opening the pension account, it is left blank. In such cases the wife can’t claim Life Time Arrears of the late ESM. As per the existing rules, Banks can pay the left over money in late individual’s account, to the nominee or to the next heir as per succession certificate from a court of law.
The wife automatically can’t claim Life Time Arrears of her late husband if she is not a nominee. A large number of widows are surprised to find themselves in such frustrating situation after their husband’s death and seek our advice on this matter. There are cases where a widow had to wait for years to complete legal formalities in a court to claim the benefits. Similarly it is desirable for family pensioners also to have a nominee in their bank account. The nominee should preferably be one of her children who are looking after her.
Click here to read about the Importance of Nominee
Insurance policies: A nominee can claim the insurance benefits without any delay. The Beneficiary can also assign the policy to your heirs or surrender it as per your wishes. If there is no nominee, the insurance company may require a probate or a letter of administration from the court to settle the claim.
Shares and mutual funds: A Beneficiary can receive your shares or mutual fund units and transfer them to your heirs or sell them as per your instructions. The Beneficiary can also receive dividends or capital gains from your investments. If there is no nominee, the share or mutual fund registrar may require a transmission request form along with the death certificate and other documents to transfer your holdings.
PPF and EPF: A nominee can withdraw your PPF or EPF balance and distribute it to your heirs. The Beneficiary can also continue your PPF account till maturity or close it prematurely as per the rules. If there is no Beneficiary, the PPF or EPF office may require a legal heir certificate or a succession certificate from the court to release the funds.
Locker: A Beneficiary can access your locker and take the contents after providing the death certificate and other documents. The Beneficiary can also surrender the locker or transfer it to your heirs. If there is no nominee, the bank may require a court order or a letter of administration to open the locker.
How to Update Your Nominee as a Serving or an ESM?
You can update your nominee as a serving, veteran or an ESM by following the steps given below:
First, you need to check the current status of your Beneficiary in your legal and financial documents. You can do this by contacting the respective financial institutions or checking their online portals.
Second, you need to fill out the Beneficiary updation form and submit it to the respective financial institutions along with the required documents, such as identity proof, address proof, relationship proof, etc. You may also need to provide the consent of your existing Beneficiary or heirs if you are changing your nominee.
Third, you need to verify the Beneficiary updation by receiving confirmation from the respective financial institutions. You can also check the updated status of your nominee online or by visiting the branch.
Fourth, you need to inform your nominee and your heirs about the nominee updation and share the details of your assets and instructions with them. You can also make a will or a trust to specify your wishes regarding your assets.
Conclusion
Nominee updation is a crucial step that you need to take as a serving, veteran or an ESM to ensure the safety and security of your assets and your family. By updating your Beneficiary, you can make the process of transferring your assets easier and faster for your family in case of your death. You can also avoid disputes and conflicts among your heirs or claimants of your assets. You can also prevent your assets from being frozen or seized by the authorities or creditors in case of any legal issues.
Therefore, you should update your Beneficiary regularly and keep your legal and financial documents updated. You should also inform your Beneficiary and your heirs about your assets and your wishes. You should also make a will or a trust to specify your wishes regarding your assets. By doing so, you can ensure that your assets are transferred to your loved ones as per your desire. For more information on nominee updation and other schemes for veterans and ESM, you can visit the concerned departments like Banks, Post offices, Insurance offices etc.
5 Reasons Why Retired Defence Personnel Should Have An Emergency Fund
