Can Nomination Override a Will?

The subject has been much disputed. Courts and arbitrators have had differences of opinions and have resolved each case depending upon its merits and situations. As per texts published by Hariani & Co.,

“….the compliance of the procedure of nomination is merely a myth as it does not substitute a legal will and merely appointing a nominee will not suffice. Further, it will not be out of place to point out that there appears to be a gap/disconnect between the legislature, draftsman and final interpretation by the Courts of the provisions of the various Acts. Needless to state, the interpretation of the Courts would prevail and Nominee is considered only as a Trustee and not the owner….”

“…While carrying out succession planning it is important to note that Nomination may not really serve the purpose as the Nominee will only act as a Trustee for and on behalf of the legal heirs of the Nominator. Nomination does not really serve the purpose for the Nominator. In fact it helps the organisation (i.e. Bank, Mutual Fund, Insurance, etc.) as in case a Nomination has been effected, the organisation merely confers the right on the Nominee so that does not have to hunt /search for the legal heirs of the deceased. The assets of the Nominator (irrespective of Nomination) will devolve upon the beneficiaries in case of a will and upon the legal heirs in the absence of a will as per the respective laws of succession….”