When someone dies or becomes unable to manage their affairs, families often discover that the money is there but hard to reach: accounts without nominees, policies nobody knew about, documents in three different places. A few hours of organisation now can spare your family months of paperwork later.
Step 1: Make an inventory
List every account and policy, with the institution and an account or policy reference: savings accounts, fixed deposits, mutual fund folios, demat and trading accounts, bonds, provident fund, NPS, PPF, life and health insurance, lockers and property. The Wealth Lab asset and liability steps are a useful prompt for what to include.
Step 2: Check the nomination on each
| Where | What current rules allow | What to check |
|---|---|---|
| Bank deposits | Up to four nominees, either simultaneous (with percentage shares) or successive (in order of priority) | Each account and FD has nominees, and their shares or order are what you intend |
| Bank lockers and safe custody | Successive nominations | A nominee is registered for the locker |
| Mutual fund folios and demat accounts | Up to ten nominees, with percentage shares; sole holders must nominate or formally opt out | Every folio — including old ones — has nominees or a recorded opt-out |
| Life and health insurance | Nominee named in the policy; can usually be changed | The nominee is current and the insurer has their correct details |
| Provident fund, NPS, PPF | Nominations recorded with each scheme | Nominations are filed and up to date |
These rules have changed in recent years and may change again; the institution's current form is the authority.
Step 3: Decide shares and order
With several nominees you can usually divide an account in percentages (simultaneous nomination) or name people in order, so the next receives the money if the first cannot (successive nomination, where offered). Think about minors — a guardian may need to be named — and about what happens if a nominee dies before you.
Step 4: Understand nominee versus heir
A nomination tells the institution whom to pay, which makes the transfer far simpler. It does not always settle who ultimately owns the money; that can depend on the type of asset, the succession law that applies to you and whether you have a will. This is an area for legal advice, not guesswork.
Step 5: Consider a will
A will sets out how you want your assets distributed and can name guardians for minor children. It works alongside nominations rather than replacing them. A will that matches your nominations avoids confusion and disputes. Take professional advice when drafting one.
Step 6: Build a family file
Create one place — physical, digital or both — that lists what exists and where the documents are:
| Section | What to include |
|---|---|
| Identity | Where PAN, Aadhaar and passports are kept |
| Bank accounts and deposits | Institution, branch, account type, nominee |
| Investments | Fund houses and folio references, demat account details, bonds |
| Insurance | Insurer, policy number, cover, premium date, nominee |
| Retirement | Provident fund, NPS and PPF account references |
| Property and loans | Title documents, loan statements, locker details |
| People | Lawyer, tax adviser, your CompoundX relationship manager, employer HR contact |
| Instructions | Where the will is kept; any wishes you want known |
Do not put passwords, PINs or OTP devices in the file. Store credentials separately and securely. The family file should help someone find accounts and documents, not access them on its own.
Step 7: Tell someone
A perfect file helps no one if nobody knows it exists. Tell your spouse, an adult child or another trusted person where it is and how to use it.
Step 8: Review regularly
Revisit nominations and the family file after any major life event, and once a year as part of your annual portfolio review. Old folios and policies are where outdated nominations most often hide.
Getting this right is part of protecting your family, alongside adequate term cover and an emergency fund. If you would like help organising it, book a consultation.