1) you can during your lifetime sell some of your mutual funds and transfer sale proceeds to your friends

2) in the alternative execute will wherein you bequeath money lying in your bank accounts , fixed deposit to friends

3) as you rightly stated nominee is only trustee for legal heirs

4) on your demise your relatives as class 2 legal heirs will be able to claim your assets inspite of nomination made in mutual funds , bank accounts

5) in nomination making false statement that male friend is your brother would not help you as on your demise the bank/ mutual funds would direct nominee to obtain succession certificate from court

1. The answer to this is simple-Execute a will in favour of the person(s) whom you want to succeed to your mutual fund and savings after your lifetime. Even if you were permitted to nominate your friends they will be mere trustees of the legal heirs.

2. When you execute a fresh will it is an automatic revocation of the previous will.

3. To state that your friend is your brother in the nomination form will be an offence. That apart, the nominee will have to prove his relationship at the time of realising the assets nominated to him. It is not that mutual fund houses/banks will blindly allow him to realise the asset nominated in his favour after your lifetime.

1.Well,making Willin fvour ofthe eprosn you want as beneficiary isyouronly remedy.

2.Do Not worry as descriptions of investments in general in Will is enough.The numbers are not required to be given.

3.Even general descriptions of your moveable assets lying is various banks-whether name it or not is enough to make the beneficiary of the Will lawful title holder.

4.In financial instruments you can not make non relatives your nominee.

5.To maketh menominee does not make them grab the money as if there's a Will The beneficiary alone will be entitled to get the money.The status of nominee will be is nothing but as a trustee.

You can make such mention against their name as brother and sister, but probably they will have to show prove when they go to claim such assets. It better to make a will with regards to the same and write that all my investment in mutual fund shall go to such and such persons.

Regards

How to overcome this? I do not want my relatives to grab my money, I would like the investments to go to friends I will specify in each instrument.

If there is no provision 9in law for this then no new law can be created for your purpose alone.

You may write a will favoring the friends stating that you dont have faith in any relatives hence you are bequeathing all your movable and immovable assets to so and so , a close friend get the Will registered.

What safeguards are possible if any?

You can transfer the same by a gift deed if will is not conducive

How to specify friend as nominee?

You know the laws that nominee is just a trustee on behalf of the legal heirs and cannot avail the amount by themselves if they are not one among the legal heirs.

Then why do you insist on nominee, when there is no provision to appoint a friend as a nominee and this nomination will not bar the legal heirs from having an access over your assets/estates.

I could specify in the nominations, a male friend as brother and female friend as sister, to bypass the limitation in the rules. Would they have to produce evidence of the same if they were to collect the nominated money someday?

It will become tough for them to prove the relationship in the event of any dispute in this regard before court of law.

Take wise decisions properly at proper time.