Succession in India - An intersection of succession laws, nominees & wills.

Imagine this: You’ve spent your entire life working hard, saving money, purchasing insurance, and even nominating someone for your bank accounts, insurance policies & other assets. You think, “Perfect, my loved ones are taken care of.” But here’s the twist: a nomination doesn’t guarantee who inherits your money or assets after you’re gone.

Confusing? Don’t worry—we’ll simplify everything for you.

What Does Nomination Mean? (The Shortcut)

Nomination is similar to appointing a “temporary caretaker” for your assets after you pass away. It is mechanism that allows banks & financial institutions to discharge their lawful duties by transferring assets to nominees. The nominees are then expected to navigate the complexities of succession & further transfer assets to the legal inheritor/s.

Here’s how it works:

• A nominee is merely a custodian, not the legal owner of the asset.

• Their role is to manage or hold the asset until the rightful heirs claim it.

Example: Suppose you nominate your best friend for your bank account. They can access the funds after your passing, but they don’t legally own the money. Your spouse, children, or other legal heirs still have the right to claim it.

Nominees remain important to ensure smooth transfer of assets from banks & financial institutions. If your legal heirs are also your nominees - then inheritance of your assets is much simpler. A lack of nominees for your assets can greatly complicate inheritance & requires a larger set of legal documents & proofs. Hence, while having a nominee is not adequate - it is a necessary step to secure your assets for your family.

Curious about how nominations work across different asset classes? Learn about what you need to know about nominees across your bank deposits, insurance policies & more on our blog post

What is Succession? (The Legal Path)

Ever wondered what happens to a person’s assets after their death? It’s a crucial consideration, especially if you want to protect your future or your loved ones. Succession is the process that decides who legally inherits your assets after you pass away.

The fate of these unclaimed assets depends on whether you leave behind a will ('Testamentary succession') or as per Indian succession laws in the absence of a will ('Intestate succession').

When someone writes a will, this is known as testamentary succession. In this case, the person, called the 'testator' in legal terms, leaves a document outlining exactly how their assets (wealth, property) or even sentimental items should be distributed after their death. They choose who the beneficiaries are, which could be family members, close friends, or even charities. This allows the testator to remain in control of who inherits their assets.

Read our detailed blog on legally valid wills in India here

But what happens if someone passes away without leaving a will? This is called intestate succession. In these cases, the law steps in to decide how the deceased’s assets are distributed, following a strict hierarchy based on family relationships. The specific laws applied depend on the religion of the deceased;

• For Hindus, Buddhists, Jains or Sikhs, your family will inherit your property as per the Hindu Succession Act.

• For Muslims, Sharia Law applies.

• The Indian Succession Act is applicable for Christians, Parsis, Jews, and others not covered by specific personal laws.

Read our detailed blog on Succession laws in India here

Nomination vs. Succession vs. Will : A comprehensive guide

| Aspect             | Nomination | Succession | Will |
|-------------------------|---------------|---------------|-------|
| Definition          | Appointment of a person (nominee) to manage or receive specific assets. | Legal process to determine rightful heirs of the deceased’s assets. | A legal document specifying how assets should be distributed after death. |
| Purpose             | Ensures quick access to assets post-death. | Establishes ownership rights for heirs when there is no will. | Provides clarity on asset distribution, overriding succession laws. |
| Legal Ownership     | No: Nominee is a custodian, not the owner. | Yes: Ownership is decided as per succession laws. | Yes: Ownership is transferred as per the will. |
| Applicable Assets   | Specific assets like bank accounts, insurance, mutual funds, and lockers. | Entire estate of the deceased. | Entire estate or specific assets, as specified in the will. |
| Legal Process       | Nominee claims assets directly through the respective institution. | Requires legal proof (e.g., succession certificate, probate). | Requires probate to validate the will. |
| Overrides Other Claims | No: Legal heirs can claim assets through succession or will. | No: Can be overridden by a valid will. | Yes: A will overrides both nomination and succession laws. |
| Documentation Needed| Death certificate, nominee’s ID proof, claim forms. | Death certificate, succession certificate, ID proofs of heirs. | Will, death certificate, and ID proofs of heirs. |
| Control by Deceased | Limited: Only appoints a custodian. | None: Ownership is decided by succession laws. | Full: Determines exact distribution of assets. |
| Ease of Implementation | High: Quick access for the nominee. | Medium: Time-consuming, requires court intervention. | Medium: Requires validation through probate. |
| Best Use Case       | Temporary access to specific assets like bank accounts or insurance. | When no will exists to define asset distribution. | For complete clarity and control over who inherits what

How each of these 3 concepts relate to you?

• Nomination: Always ensure you have nominees for any asset you may have. Nomination simplifies & ensures custodianship (but not ownership).

• Succession: Understand who your legal heirs are based on succession laws - especially shared inheritance. If your wishes are aligned with the succession laws - then you do not need a will. You just need to ensure your legal heirs are also your nominees. You also need to ensure your legal heirs have the information needed to actually claim your assets.

• Will: If you wish to distribute your assets as per your exact wishes - create a will to provide comprehensive and legally binding clarity on asset distribution. A will overrides both nomination and succession processes.

Important actions for you to keep in mind

If you don’t want your loved ones to fight over your money or assets, here’s your cheat sheet:

1. Nominate Wisely

   • Nominate someone you trust for your bank accounts, insurance, or other assets.

   • This ensures there’s no delay in accessing funds when needed.

2. Write a Will (Seriously, Don’t Skip This)

   • A will gives you full control over who gets what. Without it, the law decides, and that can get messy.

   • Don’t wait for the “right time”—start small and update it as needed.

3. Understand the Law

   • Know the succession laws that apply to you, based on your religion.

   • If it feels overwhelming, get a lawyer or expert to help you.

4. Create a SuperFam Vault & keep it updated

   • Store all your asset details on a SuperFam vault - and ensure your family has access to relevant information when you pass away.

   • Keep the vault updated: Life changes—marriage, kids, grandchildren & (hopefully) more assets!

Nomination is like handing over the keys, but succession decides who owns the house. To make life easier for your family, use both:

• Nominate people you trust.

• Write a clear will.

A quick note: Worried about the inherited debts? Read our detailed blog on the inheritance laws surrounding debts & loan obligations.

How Superfam’s SuperVault Can Help with Succession-Related Issues

Superfam’s SuperVault isn’t just a storage tool; it’s your ally in streamlining financial planning and succession management.

1. Secure Storage of Critical Documents
SuperVault provides a secure space to store essential documents like wills, succession certificates, and nomination forms. With everything in one place, your family can quickly access these during emergencies.

• Example: Instead of searching for a misplaced will or nomination form, your family can retrieve it instantly from SuperVault.

2. Easy Sharing with Designated Members
SuperVault allows you to share specific documents with chosen family members or trusted individuals. This ensures that the right people have access when needed, without compromising security.

• Example: You can grant your spouse access to your life insurance policy documents and nomination forms, ensuring a hassle-free claims process.

3. Organized Categorization for Quick Access
SuperVault organizes documents into categories (e.g., legal, financial, medical), making it easier to locate critical papers.

• Example: Store nomination forms under "Financial" and your will under "Legal." This ensures that heirs know where to look during succession-related tasks.

4. Emergency Access for Immediate Action
In urgent situations, SuperVault’s emergency sharing feature enables family members to access specific documents temporarily.

• Example: If your nominee or heir needs your death certificate or succession certificate to claim bank funds, they can quickly retrieve it from SuperVault without delay.

Start planning today—because a little preparation now can save your loved ones from unnecessary stress tomorrow.

Download the SuperFam app - and create your vault today. Read more about the SuperVault here