I know of a case where a person who was a diligent investor died and his family was totally in the dark about his investments. It was harried few months for the worried family to find all info on his investments. He not only made a mistake in keeping all his investments to himself but also made a mistake of not nominating anyone from his family.
What is nomination?
We all have the best interest of our family for any investments we make. When we are making investments rarely we consider our mortality. Nomination is akin to appointing a person who will be the beneficial owner of an asset in the unfortunate event of death of the investor.
A few things to keep in mind
We all make investments for our families and we like them to be taken care of even if we are not there. Few small things. Can reduce the hardship of family greatly if –
- Someone in our family is aware of all our investments and is also aware of the necessary documents and knows your financial advisor
- It is a good idea to make all investments jointly. If this is less tax efficient than investments should be made through a joint bank account( either / or type of bank account)
- We nominate a person whom we would like to be the beneficial owner of our assets
- We have left a will to clarify distribution of wealth among our family members
I will be a shame if our family member have to endure trouble to get what is rightfully theirs. We suggest some more steps to declutter and simplify your financial life to make it easy for your family (see here).
Disclaimer: The above content is just for information and should not be construed as an offer to buy or sell or recommendation. Contact your financial advisor for guidance on any investment related query.
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