You may spend 20 or 30 years building a house, buying investments, and saving for your family. But have you thought about what happens to that wealth after you are no longer around?
For many families, the problem is not whether they will inherit the money. It is whether they can find, claim and access it without running from one office to another.
A bank account may have a nominee. Your mutual funds may have another. Your property documents may be in a locker, while an old insurance policy or investment account may not even be known to your family.
A missing Will, outdated nomination, unclear ownership or simply not keeping a record of your assets can turn a straightforward inheritance into a long and stressful process.
Here are seven common gaps that can delay your family’s access to your wealth — and what you can do today to make the transfer easier.
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Families in India frequently face avoidable delays in accessing a deceased person’s assets. The most common mistakes include:
(a) No Will
Where no Will exists, significant time may pass before the legal heir is identified since the rules of personal law can be complicated.
According to SEBI, a Will is a legal document of the deceased’s preferences for the transfer of his/her assets after death, and any conflict between beneficiaries over the distribution of assets can be avoided by creating a will.
In the absence of a will, asset distribution proceeds as per personal laws/relationships could give rise to costly litigation among beneficiaries and other claimants. Succession disputes can be expensive and take years to settle in the absence of a will.
(b) Nomination not updated
This gap forces a second round of transfers — from the institution to the nominee, and then from the nominee to the heir — with real risk of potential conflict between the heir and nominee in case of non-cooperation.
A nominee acts as a custodian of the asset and does not automatically acquire ownership rights over it. In the absence of a nomination, legal heirs may have to complete additional documentation and legal formalities, which can make accessing the deceased person’s assets more time-consuming and costly.
(c) Nomination and Will not aligning
A mismatch between the nomination on file and the Will’s bequest is a known (and avoidable) source of friction. The Supreme Court of India has consistently ruled that succession rights tend not to be overridden by nominees. The nominee’s nature may be important, because different assets are subject to different regulations and laws.
(d) Assuming that nominee means owner
When in fact the nominee is not the legal owner of the property — the legal owner continues to be the heir under testamentary or intestate succession – a distinction families frequently misunderstand. A nominee is a person who, upon the account holder’s death, is granted custody of the money, as per SEBI guidelines.
(e) No consolidated asset inventory
Families often do not know the full extent of a person’s bank accounts, mutual fund folios, demat holdings, insurance policies or physical share certificates, leading to prolonged searches after death. A Will may specify who should receive the assets, but an asset inventory helps the family establish what assets actually exist and where they are held.
(f) Property/title/documentation gaps
This gap forces the family to discover accounts, lockers, policies, and folios after death rather than from a ready inventory. This leads to delays, and in the case of valuable assets, like shareholding or real estate, this can lead to a real drop in value.
(g) Overseas and digital assets not covered properly
A single Will covering multiple jurisdictions can create delays and practical difficulties across jurisdictions, because each jurisdiction has its own probate, tax, and document-recognition rules.
Making a will is a crucial component of estate planning because if a deceased person leaves assets in India and other countries without a well-structured estate plan, the family may experience delays.
After all, succession, documentation, tax, and foreign exchange regulations can vary from one jurisdiction to another.
Is having a nominee enough, or should people also have a Will?
Nomination is only a relationship created between the society, company, depository, bank, etc. and the nominee and exists only as an interregnum between the death and the full administration of the estate — it does not confer beneficial ownership.
“The owner is the rightful legal heirs as determined by the Will or the applicable intestate succession law. This is why a nomination alone is, for most asset classes, not sufficient. A Will allows you to name your heir(s) for each asset class, and also provides clarity by allowing you to align your heir with your Will,” said Bijal Ajinkya, Partner at Khaitan & Co.
What happens if the nominee and legal heir are different?
This is one of the most common sources of family disputes after death.
Where the nominee named on an account, policy or investment differs from the legal heir entitled under a Will or succession law, the following typically applies:
The nominee is entitled to receive the asset from the institution (bank, mutual fund house, depository or insurer), as the nomination simplifies the institution’s obligation to identify who to pay.
However, the nominee is expected to hold the asset on behalf of, and eventually distribute it to, the legal heir(s).
“If the nominee refuses to transfer the asset to the legal heirs, the heirs may need to pursue civil remedies, which can be time-consuming, costly and emotionally taxing for the family. To avoid this conflict, individuals should ensure their nominations are aligned with the intentions expressed in their Will, and update these periodically as family circumstances change,” stated Ajinkya.
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Which assets, such as property, PF, mutual funds and bank deposits, are most likely to create problems for families?
According to Ajinkya, different asset classes carry different transmission risks, which are as follows:
Immovable property — Requires formal mutation of title at the local municipal office, and may require probate/succession certificate/letters of administration first. This is also the most contentious – particularly ancestral property, joint family property or property without clear title documentation. It should be noted that there are increasing difficulties in cases of generic Wills, i.e., where immovable properties are not individually named / specified.
Bank deposits and demat/brokerage holdings — In the absence of nomination, banks often require indemnity bonds, succession certificates or letters of administration, particularly for high-value accounts.
Provident fund / EPFO and gratuity — Nomination generally governs payout, but disputes can arise where nominations were never updated, or where multiple claimants assert competing rights.
Shares/debentures — Transmission of shares, particularly physical share certificates, can be especially slow, often requiring notarised affidavits, indemnity bonds and, in some cases, court intervention. The charter documents of a company may carry specific procedural steps.
Mutual funds – Multiple folios across different fund houses are often overlooked, as some may be held through a demat account while others are not. Where nomination is absent, transmission requires additional documentation, including a legal heir certificate or succession certificate.
Cross-border/offshore assets — Offshore assets may trigger local succession rules and tax exposures, and a single Will across jurisdictions can create delays and practical difficulties. Making foreign bank accounts, US RSUs, or overseas property a recurring pain point for Indian families with global holdings.
Digital and cryptocurrency assets – Increasingly problematic, as families are often unaware such assets even exist, and access is frequently locked behind passwords or two-factor authentication known only to the deceased.
Some typically overlooked assets – Intellectual property rights, valuable artworks, family heirlooms, watches, first edition books, etc.
What basic documents and information should people keep ready so their family can access their wealth easily?
Individuals and families are well advised to maintain a consolidated, secure and periodically updated record comprising:
A valid, clearly drafted Will, along with details of the executor and location of the original document. Additional steps should be taken if a testator anticipates conflict – videography, notarisation, registration, medical certificate, bank specimen signature certificate etc.
A letter of instructions (though not legally binding), which can provide additional context and guidance to the family and executor regarding the deceased’s wishes and the location of key documents.
A comprehensive and updated asset inventory, listing all bank accounts, fixed deposits, mutual fund folios, demat accounts, insurance policies, provident fund accounts, immovable property and other investments, together with account numbers and the relevant institutions.
Updated nomination details across all financial accounts and policies, cross-checked against the Will for consistency.
Property documents, including title deeds, sale agreements, mutation records and, where relevant, details of any co-ownership or family arrangements.
Login credentials or a secure method of accessing digital assets, including net banking, demat accounts, and any digital or cryptocurrency holdings, stored securely (for example, with the executor or trusted family member, in a sealed document with the Will).
Details of liabilities, such as loans, guarantees or outstanding dues, to give the family a complete financial picture.
Contact details of the family’s lawyer, chartered accountant, wealth manager and bankers, to enable a coordinated response at the time of need.
Keeping this information updated annually, especially after any significant life event (marriage, birth, divorce, acquisition of new assets), significantly reduces the administrative burden on the family and minimises the risk of disputes or delays.
Disclaimer: This article is for informational purposes only and should not be construed as investment, financial, tax, or legal advice. Any illustrations, examples, or return projections used in this article are for explanatory purposes only and do not guarantee actual investment outcomes. The views and opinions expressed by experts quoted in this article are their own and should not be considered investment recommendations. Readers should consult a qualified professional before making any financial decisions.
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