Nomination is not inheritance: the ₹1.84 lakh crore mistake

Roughly ₹1.84 lakh crore sits unclaimed across Indian banks, insurers, mutual funds and the IEPF. The single biggest reason, per the government's own restitution campaign: families didn't know the money existed. It's not greed or neglect — it's a quiet, fixable information gap.

The misconception that costs families the most

Most people believe that naming a nominee on their bank account, demat, or insurance policy decides who inherits it. It doesn't. In Indian law a nominee is a *trustee* — the person authorised to receive the asset and hold it on behalf of the legal heirs. Who actually *owns* it is decided by your will, or, if there's no will, by succession law.

Nomination decides who can collect the money quickly. A will decides who keeps it. You need both — and ~85% of Indians have no will at all.

What happens with no will (and no nominee)

Without a nominee, the family has to produce a succession certificate or legal-heir certificate — months of court paperwork, during the worst weeks of their lives, often per institution. Without a will on top, disputes between heirs can freeze assets for years. The grief is unavoidable; the paperwork doesn't have to be.

The 30-minute fix

• Audit your nominees. Every MF folio, demat account, bank account, EPF, NPS and insurance policy should have one. Updating a nomination is free and takes minutes online.
• Write a will. Online will services cost ₹3,000–6,000 and take under a week. Register it for extra strength. Nomination is not a substitute.
• Write a 'where everything is' file. A single page: every account, who to call (your CA, advisor), where the documents and passwords live, and the first things to do. This is what turns ₹1.84 lakh crore of 'lost' money into money a family can actually claim.
• Tell your spouse it exists. The research is blunt: 47% of Indians have *never* discussed estate planning with family. The file is useless if no one knows about it.

Educational planning, not legal advice. For a will and estate plan tailored to your situation, consult a lawyer or a SEBI-registered adviser.