Definition
Nomination Updating
Nomination updating is the simple but vital task of keeping the named nominees on your bank accounts, investments and insurance current as your life circumstances change.
A nominee receives an asset on your death to pass it to the rightful heirs, so an outdated nomination — naming a deceased relative, or a former spouse — can cause delay and disputes when survivors try to claim the asset. Many people set nominations once and forget them, creating avoidable complications later.
Reviewing nominations after major life events — marriage, children, divorce, a death in the family — and ensuring every account, mutual fund, demat holding and policy has an appropriate, current nominee is an easy win in estate planning. It does not replace a will, but it smooths the handover of assets to your family.
Related terms
- Will (Testament)A will is a legal document in which a person states how their assets should be distributed after death and who should carry out those wishes.
- Legal Heir vs NomineeA nominee is the person you authorise to receive an asset after your death, but a legal heir is the person actually entitled to inherit it — and the two are not always the same.
- Estate PlanningEstate planning is the process of arranging how your assets will be managed and distributed during your lifetime and after death, to carry out your wishes and ease the path for heirs.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.