How to Claim Money After Death Without a Nominee?

Last Updated: 6 Aug 2025

One of the common problems people face is when an account holder in the family dies without appointing a nominee. Today, when you open a bank account or a demat account or even buy mutual funds, it is mandatory to appoint a nominee. In case you choose not to name a nominee, you must mention the reason why you don’t want to appoint a nominee.

But, coming back to the practical aspect of it, if a person dies without a nomination, it can create a major logistical problem. So, let’s get to the details and understand how to claim money after death without nominee.

What Is a Nominee in a Bank Account?

A nominee is the individual an account holder designates to receive the account’s proceeds if the holder dies. Indian banking law treats this person as a trustee or custodian, not automatically as the legal heir.

The nominee’s chief duty is to collect the money from the bank and hold it in trust for the estate’s rightful beneficiaries, who are determined by the will or, if absent, by succession law.

Because the nominee is merely a conduit, the ultimate ownership may still rest with legal heirs who can challenge the nominee’s claim in court if the distribution does not follow inheritance rules. Clear, updated nomination forms therefore ensure quick fund release while still preserving heirs’ legal rights.

Understanding the Waterfall Concept in Nomination

When we talk of a nominee to a bank account or a demat account, there is a waterfall that one needs to understand and where the nominee fits into the entire scheme of things.

• Firstly, even if the account has a nominee, in the event of the death of the primary account holder, the account will vest with the other joint account holders. Hence, joint account holders have the first order of preference in the event of the death of the primary account holder.
• Secondly, if the primary account holder is holding the account in individual capacity, then the account will automatically vest with the nominee. In this case, the nominee only has to submit the registered death certificate with the application.
• Thirdly, in case there is no nominee, the next level of waterfall will be the will or legal testament made by the primary account holder. This will be the third level where the account ownership will pass on based on the terms of the will and consummated by the executor.
• Lastly, if even the will is not in existence, then it takes the due process of law, and the account vesting will depend on the legal dependents of the primary account holder based on legal affidavits duly signed.

What if the Account Holder Dies Without Appointing a Nominee?

Another major question in this regard is ‘what happens if primary account holder dies?’ If no nominee exists, banks must establish who lawfully owns the money. Legal heirs can follow this step-by-step path:

Obtain the Death Certificate

• Secure several certified copies; every institution will need one.

Search for a Registered Will

• If found, verify it and find out whether it mentions the relevant account or investments.
• Submit the will, death certificate and heirs’ ID/address proofs to the bank.
• The bank transmits funds according to the will after internal checks (typically 6–12 months).

No Will? Seek a Succession Certificate

• File a petition in the district or high court having jurisdiction over the deceased’s domicile to claim without nominee.
• Attach the death certificate, list of assets, relationship proofs and a court fee.
• The court issues public notices inviting objections, then grants the succession certificate naming rightful claimants.

Joint Accounts or Joint Holdings

• If the deceased was the first holder in a joint account, the surviving holder submits an application plus the death certificate.
• Ownership vests directly in the survivor, even if a third-party nominee exists.

Multiple Heirs & Disputes

• If heirs dispute a bank claim after death, any party may seek a succession certificate or a letter of administration.
• The bank can withhold payment until a court order clarifies entitlement.

Family Settlement as an Alternative

• Heirs may draft a family agreement deciding asset division.
• Each heir signs an affidavit before a notary; the registered agreement is then presented to the bank.
• This avoids protracted litigation and speeds up release once the bank is satisfied.

Final Submission to the Bank

• Provide the succession certificate or registered family agreement, KYC documents and a discharge receipt.
• The bank validates papers, completes due diligence and credits heirs’ accounts.

By methodically following these steps, heirs turn an otherwise stalled account into accessible funds in case the account holder dies without nominee.

Why It’s Important to Appoint a Nominee

Choosing a nominee is one of the simplest ways to shield your family from avoidable red tape and claim money after death. When a nominee is on record, banks can release funds by examining just two documents, the death certificate and the nominee’s identity proof, often finishing the transfer in a few months instead of years. Without a nominee, heirs must chase succession certificates, register family agreements or even litigate, all while bills and taxes keep piling up.

Appointing a nominee also lowers the risk of intra-family disputes. Since the bank’s obligation ends once it pays the named person, jealous relatives cannot pressure branch officials to freeze the account or redirect the money. Even if heirs eventually challenge the nominee in court, at least the cash is safely parked with a trusted family member rather than stuck in the bank’s suspense ledger.

For maximum protection, review nominations at every major life event, marriage, divorce, birth of a child, or purchase of property, and keep beneficiaries informed so nobody is blindsided later. Verify that your nominee’s name matches official ID records to avoid mismatched-signature delays. These small, proactive steps spare loved ones from emotional strain and expensive legal detours when they’re least prepared to cope.

Conclusion

A nominee streamlines access to a bank fund claim but doesn’t override inheritance rights. Appointing one and updating that choice prevents costly delays. If no nominee exists, heirs must rely on wills, succession certificates or family settlements before the bank can release money. Early planning is, therefore, the best gift an account holder can leave behind.

Frequently Asked Questions

1. Can a minor be appointed as a nominee?

Yes, but the account holder must also name an adult guardian who will receive the funds on the minor’s behalf until the child attains majority.

2. Does a nomination trump a will?

Banks release money to the nominee, yet heirs named in a valid will can legally claim their share later.

3. How long does it take to obtain a succession certificate?

Timelines vary by court backlog, but it generally takes 3–6 months if no objections arise; complex disputes can extend the period.

4. Can I add multiple nominees to one account?

Most banks allow only one nominee per account, though some permit multiple nominations with specified percentage shares; check your bank’s policy.