What is the difference between a Nominee and a Beneficiary?
peakalpha Changed status to publish November 9, 2021
It has become increasingly common to interchange the words “Nominee” and “Beneficiary”. Nominee is a person or a company “entrusted” with safeguarding the investor’s assets until they are distributed to the rightful heir. A nominee is just a custodian of the assets and not entitled to the assets unless he/she is the rightful heir as decided by the law. A beneficiary, on the other hand, is entitled to the assets upon the demise of the owner. It is very important to name beneficiaries to ensure that your money or assets goes exactly to the person or institution that you want to pass it on to.
peakalpha Answered question November 9, 2021