In the case of appointing a minor as a trustee, a custodian must also be appointed to look after the property until it reaches legal age.
Having a nominee also ensures that property is not left unclaimed.
While making any kind of investment or buying any property, a person can specify his candidate. The appointment facility allows the individual to appoint a person who will have the right to claim the investment or property in the event of death. Although nominating candidates is common practice, it is not mandatory in most cases. Now the question arises: should you make some of your nominees?
Making someone your nominee allows for a hassle-free transfer of your assets in the event of death. A proxy, however, is different from a legal heir.
In the case of real property, an agent is simply a trustee who is entitled to receive the proceeds on behalf of the legal heir of the owner of the property. In other words, the candidates do not have absolute ownership of the asset. They are only guardians until an heir claims it. The distribution of the assets to the legal heir of the original owner is made on the basis of the laws of succession or the will.
Having a nominee also ensures that property is not left unclaimed. A candidate can be anyone in the family, a relative, or anyone else the original owner trusts. Candidates do not have to be named when purchasing the property. The appointment can be made at any time and withdrawn at the discretion of the original owner.
Difference between a candidate and a legal heir
A proxy may or may not be the legal heir to a person’s property. For example, if a person appoints his eldest son as a proxy in the case of a property and has left no will regarding distributions, then in that case the person will be a proxy as well as the heir. However, in the case where the person has left a will in which he specifies the distribution of the property, then the mandatary will only be a custodian.
A person can name anyone as their legal heir for self-acquired property, but the rule does not apply to ancestral property. In this case, inheritance laws apply to the division of these assets.
In the case of appointing a minor as a trustee, a custodian must also be appointed to look after the property until it reaches legal age.
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