Young Nominee Are Best Option For Your Investments!

BANGALORE: This is the concern that most of us have before investing like whether or not to make the investment? Will it be helpful? Where should we invest? What is the amount to be invested? But the truth is people never think about nomination for an investment. In most cases, a nominee is a child, spouse or a parent. The logic behind this is simple; the money will go to any of these people in the event of the investor’s death. However, appointing a nominee should be a well-thought process.

Kartik Jhaveri of Transcend Consulting suggests joint investments. It’s easier to handle such investments if either of the investors is not there. “But if one cannot, then one should choose a nominee who is much younger. Ideally, it should be their adult son or daughter. If not, only then should one choose a minor,” he said.

Certified financial planner Pankaj Mathpal said he avoids suggesting minors as a nominee. “This is because a nominee is a trustee for investments or assets and, therefore, should be mature enough to be able to handle money matters.” If a minor has to be made a nominee, the nomination should also have the details of a guardian. One should also avoid nominating parents because they are more likely to die before the investor. One usually nominates a parent(s) when one is young or unmarried. However, it is essential to change the nominees once the investor gets married or the parents die.

For those who are single, it would be better to nominate a close and trusted cousin or a niece or nephew, to whom an investor would like to pass on their assets. A charitable organization supporting a cause close to the investor’s heart can also be a nominee. It is essential to ensure the space for a nominee on an investment form should not be left blank—that’s worse than making a bad nomination.