What Happens to Your Money If You Die Without a Nominee?
If you die without a nominee, your money may not reach your family without legal battles. Here's how to fix it in minutes — and why it's more urgent than you think.
This is a topic no one wants to talk about — but everyone should.
We plan vacations. We plan EMIs. We plan our Instagram grid.
But we don’t plan what happens to our money when we’re gone.
And if you die without a nominee on your bank accounts, mutual funds, or insurance…
Your loved ones may have to fight paperwork and legal systems just to claim what’s rightfully yours.
Let’s understand what happens when there’s no nominee, and how you can fix this in under 10 minutes.
❓ First, What’s a Nominee?
A nominee is the person you authorize to receive your money/assets if something happens to you.
It’s NOT the same as an heir in legal terms — but it makes transfer fast and easy.
Nominees are common for:
- Bank savings accounts
- Fixed deposits
- Mutual funds
- Insurance policies
- PPF/EPF accounts
- Demat accounts
⚠️ What Happens If There’s No Nominee?
If you die without assigning a nominee:
1. Money Gets Frozen Temporarily
- Bank/Fund/Insurer can’t release the money to just anyone
- Even if your family shows your death certificate
2. Legal Heirs Must Step In
Your family needs to:
- Apply for a succession certificate or legal heir certificate
- Submit ID proof, death certificate, and other paperwork
- Wait weeks (sometimes months)
In case of conflict (e.g., multiple heirs), the process can drag on for years.
3. It’s Mentally and Financially Draining
While dealing with grief, your family has to:
- Visit banks/branches repeatedly
- Hire lawyers or CA support
- Lose time, energy, and sometimes even unclaimed money
🔍 Real Example:
A man dies with ₹5 lakh in his mutual fund account, no nominee.
His wife and son need to:
- Prove they’re legal heirs
- Wait for a court order
- Submit multiple documents to the AMC
Even after all that, the fund house isn’t legally bound to disburse quickly.
✅ How to Add or Update a Nominee (Takes 2–5 Minutes)
🏦 Bank Account (SBI, HDFC, ICICI, etc.)
- Use net banking or visit your branch
- Look for “Update Nominee” option under profile/settings
💼 Mutual Funds
- Login to your platform (Groww, Zerodha, Kuvera)
- Go to profile → nomination details
- Enter name, DOB, relation + submit OTP
New SEBI rule: Nominee is now mandatory for MF accounts (since Oct 2023)
📋 Insurance / PPF / EPF
- Ask your agent or HR to update your nominee
- Submit a simple form with ID & relationship
👪 Who Can Be a Nominee?
- Spouse
- Child
- Parent
- Sibling
- Friend (in some cases)
Choose someone you trust.
And update if your situation changes (e.g., marriage, divorce, death of a nominee).
💬 Final Thoughts
You worked hard for your money — make sure it goes to the right hands, without delay or stress.
Setting a nominee takes minutes.
Not setting one could cost your family months of struggle.
Do this today — and remind your parents, siblings, and friends to do it too.
📢 Bonus Coming Soon:
“Nominee Checklist PDF” – One place to note all your accounts + nominee details
👉 Subscribe to Bitveen and get yours free.
This post is for educational purposes only and should not be considered financial advice.
Bitveen Admin