Is there a last date to file e-nomination in EPF account?
It is important to ensure that an individual makes a nominee in his/her EPF and EPS account so that after their demise, monetary proceeds can be easily given to the nominee.
There were news reports (not ET.com) doing the rounds last month that December 31, 2021 was the last to file nomination in one’s Employees’ Provident Fund (EPF) account. And that not doing this before the deadline would result in one’s EPF account not getting credited with the amount. However, as per the EPFO website, there is no last date for updating e-nomination in one’s EPF account.
Added to this, the EPFO had clarified via a tweet on its official Twitter account that nomination in the EPF account can be filed after December 31, 2021 too. The tweet read: You can file nomination beyond 31st December, 2021. But choose to file e-nomination today.
Empower your family, file enomination. #EPFO https://t.co/sY8EjuDjSs
It's important to ensure that an individual makes a nominee in his/her EPF and EPS (Employees’ Pension Scheme) account so that after their demise, monetary proceeds can be easily given to the nominee. In the absence of a nominee, extra documents can be demanded by the EPFO before the money is credited to the legal heir(s) accounts.
Screenshot from EPF website An EPF member is also covered under the Employees’ Deposit linked Insurance (EDLI) scheme. Under the scheme, an individual’s nominee is entitled to receive a maximum of up to Rs 7 lakh after the death of an EPF member. EPF members can file a fresh nomination or update the existing nomination on the Member Sewa portal of the EPFO. Click here to know the steps to file nomination in your EPF account online.
As per EPF rules, after the marriage of an EPF member, the previous nomination made becomes null and void. Thus, if an EPF member has recently gotten married, then it is important to ensure that a fresh nomination has been filed after marriage.
Can there be a wrong nominee for your investments, financial assets?
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The right nominee is the person to whom you bequeath assets in your will. If you don't create a will, the right nominee is the heir to the asset as per succession laws. Nominating this person will facilitate a smooth, successful, and final transfer of the asset after your death, devoid of conflict. You thus ensure that the person you want to leave that asset to actually gets that asset for good. But can there be a wrong nominee? Yes indeed. Here are 3 cases when you may end up putting down an incorrect nominee and what you should do to make transfer of your assets and estate smoother.
The right nominee is the person to whom you bequeath assets in your will. If you don't create a will, the right nominee is the heir to the asset as per succession laws. Nominating this person will fa..
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Sometimes the person one nominates to receive money from his/her fixed deposit is not the same as the person to whom one bequeaths the same FD in the will. In most cases, after the holder's demise, the bank will transfer the FD money to the nominee mentioned in the FD form when the FD is not jointly held. If jointly owned/held and the first holder too passes away, then to whom the asset is transferred will depend on the mode of operation of that asset.
Supreme Court states that a nominee is merely a custodian of the asset/money, and the actual heir to the FD is the person clarified in the will. If the two persons are different then the actual heir will have to claim the money from the nominee. This can lead to legal wrangles if the nominee does not want to part with the asset/money received, aggravted further by the cost of legal battles in India.
Sometimes the person one nominates to receive money from his/her fixed deposit is not the same as the person to whom one bequeaths the same FD in the will. In most cases, after the holder's demise, t..
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If someone passes away without creating a will, they are said to have died intestate. In this case, assets are distributed among heirs as determined by the applicable succession laws of the country. Succession laws depend on the religion of the person who has passed away. Normally, the laws classify family members as class I, II or III heirs and the wealth of the deceased is distributed by the court among these. Class I heirs get the first preference and so on.
For example, in case of a Hindu male who passes away intestate, the class I heirs include mother, wife, children, son of predeceased son and so on. However, father is not the immediate legal heir of a Hindu male. Thus, if there are no class I heirs of a Hindu male, only then the father will be eligible to receive the assets of his son. Hindu succession law also states that every legal heir of the same class (e.g say all Class I heirs) has equal right on every asset of the deceased if there is no Will. The bank will, normally, pay the money to the nominee and he/she will be required to transfer it to the legal heirs as per their entitlement.
If someone passes away without creating a will, they are said to have died intestate. In this case, assets are distributed among heirs as determined by the applicable succession laws of the country. ..
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Let us assume you have nominated your son in one of your bank FDs. In the event of your demise, the bank will pay the amount to your son as he is the nominee. However, he will be required to share the money with other legal heirs to the extent they are entitled to receive the money as per succession laws i.e., with your spouse, and your other children. If he does not give their share to them, then they can go to court demanding their legal right.
Let us assume you have nominated your son in one of your bank FDs. In the event of your demise, the bank will pay the amount to your son as he is the nominee. However, he will be required to share th..
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In case of certain assets such as Employees' Provident Fund (EPF), Employees' Pension Scheme (EPS) and Gratuity, only defined 'family' members can be nominated by the person. A person cannot bequeath money from EPF, EPS and gratuity to anybody other than those defined 'family' members in the Will. If there is a mismatch i.e., the money is bequeathed to someone other than the defined 'family' member, then nomination takes precedence over the will. This implies that beneficiary in the Will will not obtain the money, which will instead fall under the nominee' entitlement.
In case of certain assets such as Employees' Provident Fund (EPF), Employees' Pension Scheme (EPS) and Gratuity, only defined 'family' members can be nominated by the person. A person cannot bequeath..
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Ensure that your nominations for various assets are in line with your Will or applicable succession laws. Legal experts also recommend that at the time of making a will, an individual should mention the reason for bequeathing a particular asset to a particular beneficiary. This specifies the intent of an individual which will help in avoiding legal disputes at the time of claiming assets and respecting the deceased's wishes.
Ensure that your nominations for various assets are in line with your Will or applicable succession laws. Legal experts also recommend that at the time of making a will, an individual should mention ..
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If you are bequeathing assets to a minor, make sure that the guardian appointed has high morals and is able to ensure that the money is passed on to the minor child once he/she is eligible. Sometimes it is seen that the person appointed to oversee the transfer of assets after an individual's death does not do the same, leaving legal heirs to fight a legal battle in court.
If you are bequeathing assets to a minor, make sure that the guardian appointed has high morals and is able to ensure that the money is passed on to the minor child once he/she is eligible. Sometimes..
