INCOME TAX8 Sept 2026
Can you nominate a minor for insurance or mutual funds? Here's what you need to know | Mint
Yes, you can name a minor as nominee for insurance, mutual funds, fixed deposits, and even the Employees' Provident Fund – there is no minimum age. But a nominee only acts as a custodian; who inherits is decided by your will or succession laws. If you nominate a child, a guardian receives and safeguards the money until the child turns 18, when it must be transferred.
Key Statutory Highlights
- There is no minimum age restriction for naming a minor as a nominee for insurance, mutual funds, fixed deposits, or the Employees' Provident Fund.
- A nominee is only a custodian of your assets after death – the will or succession laws determine who ultimately inherits.
- When a minor is nominated, a guardian or designated person receives and manages the proceeds until the minor turns 18, when the funds must be given to the minor.
Actionable Advice for Taxpayers / Founders:If you nominate a minor, pick a trustworthy guardian, update nominee details after major life events, and ask your platform about naming an alternate guardian so your family avoids delays.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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