Is Nomination A Myth?

By making a nomination in your assets would the assets devolve as mentioned in your Will or would it go to the person nominated absolutely? Increasing amount of misconceptions about the consequences of appointing a nominee are prevalent.

A nomination is made during the life of the holder / owner of the asset and comes into force after his death. The primary uncertainty appears to be whether after a nomination is made the nominee derives absolute right as the owner or the nominee is merely a trustee on behalf of others and acts in a fiduciary capacity for the legal heirs as per the succession law. A recent judgement passed by a learned single judge of the Hon'ble High Court at Bombay as discussed below has considered in detail the question as to whether by virtue of the nomination a person can claim exclusive rights to and ownership of the investments.