New Delhi, Aug. 26 -- Naming a nominee for your investments does not necessarily mean that the nominee becomes the final owner after your death. For investments such as shares, demat securities and mutual funds, the nominee generally receives the assets on behalf of the persons ultimately entitled to them under a valid Will or applicable succession law, experts said.

"There is a general perception that nominee becomes the legal owner after the death of the investor. However, this is not the legal position," said Jignesh Shah, Partner, Bhuta Shah & Co LLP.

According to Shah, a nominee receives and holds the investment in a fiduciary capacity on behalf of the legal heirs until the asset is distributed as prescribed under the Will or, in t...