Step-by-Step Guide: How to Claim Money After an Account Holder’s Death Without a Nominee

When anyone opens a bank account, demat account, or an investment account, the process usually includes the option to add a nominee. A nominee acts as a legal heir or successor, someone who is entitled to your assets after your death. In the case of a bank account, if something happens to you whether due to an accident or other circumstances the money in your account is transferred to the nominee. However, adding a nominee is not mandatory, and many people choose not to add one. So, what happens if you pass away without a nominee in your account? 

Who Gets the Money if There’s No Nominee?

If the account holder dies without having named a nominee, the money in the account is transferred to the legal heirs of the deceased. If the account holder was married, the legal heirs typically include the spouse, children, and parents. In the case of an unmarried account holder, the legal heirs can be the parents, siblings, or other relatives, depending on the family structure.

How to Claim the Money?

When a nominee is added to the account, they need to submit certain documents after the account holder's death to claim the money. However, if there is no nominee, the legal heir must claim the money, and this involves submitting various documents, such as:

- Death Certificate of the deceased account holder

- Photograph of the legal heir

- KYC (Know Your Customer) details of the heir

- Letter of Disclaimer Annexure-A

- Letter of Indemnity Annexure-C

These documents are required to complete the claim process and release the funds from the account.

Why Is It Important to Add a Nominee?

Without a nominee, the family may face legal disputes over the inheritance, which can be time-consuming and expensive. In such cases, proving who the rightful heir is can become a lengthy legal battle. This could lead to delays and complications in settling the affairs of the deceased, and the family might end up spending significant time and money. Insurance companies may also face challenges in processing claims if there is no clear nominee, as they are unsure who the legal heir is.

Therefore, adding a nominee to your bank account is crucial. It helps avoid unnecessary disputes and ensures that your money and assets reach the right hands smoothly and quickly after your death. This simple step can protect your family from future financial and legal problems.