5. Nominee & Legal Heirs
A nominee and a legal heir are two distinct terms used in different contexts, particularly in legal and financial matters. Here's an explanation of each term :
Nominee :
In legal and financial contexts, a nominee refers to a person or entity who is appointed or designated to act on behalf of another person or entity. The nominee holds the assets, properties, or positions in a fiduciary capacity, meaning they have a legal responsibility to manage or administer them according to the instructions or wishes of the actual owner or principal. Nominees are commonly used in various scenarios, such as nominee shareholders in companies, bank accounts, or investment holdings. The nominee typically holds legal title but does not have beneficial ownership or rights over the assets or properties they hold. He / she is just a care taker of property until it is not transferred on deceased legal heirs, works as a Trustee.
Legal Heirs :
A legal heir, on the other hand, refers to a person who is entitled to inherit the assets, properties, or rights of a deceased person according to the laws of inheritance or succession. When someone passes away without a valid will or testament, their assets and properties are distributed among their legal heirs based on the laws of the jurisdiction in which they reside. Legal heirs can include spouses, children, parents, siblings, or other relatives, depending on the specific laws and regulations governing inheritance in a particular jurisdiction.
