Nomination Rules for EPF – why one should always update or check or change one’s nominee details.
It is better to understand the EPF nomination rules and take them seriously. Many are not aware of the importance of this EPF nomination.The updates should be done as and when the need arises. We will be discussing in short the Nomination rules, rights of Nominee, online Nominee details, and finally how to update the details.
EPF Nomination Rules
What are the EPF Nomination rules? How often can we change the nominee? Let us understand these basics in detail.
# Your all EPF accounts must have the nomination. This makes easy fund transfer in case of your sudden demise.
# You can nominate more than one nominee and also fix the % of sharing among all such nominees.
# You must always nominate someone who can be considered as a family member. A non-family nominee is not valid.
# If you have no family, then you can nominate someone. However, once the member has a family the nomination should be transferred to the family member.
# If you nominated someone before marriage, then post marriage you have to update your spouse as a nominee. If you do not update then the nominations made before the marriage will be considered invalid. It is necessary to file new nominations, post marriage.
# In case a minor is a nominee, the guardian should be the family member. However, if there is no family member to become a guardian, then the employee can appoint a guardian from outside family.
# If there is no nomination the EPF amount would be equally distributed among family members. The sons who have attained maturity, sons of a deceased son who have attained maturity, married daughters whose husbands are alive and married daughters of a deceased son whose husbands are alive are not considered for such distribution.
# You can change the nomination as many times as you wish.
Rights of the nominee in EPF
What are the rights of the nominee in EPF? Whether the nominee will be the natural owner of the fund after the death of an employee? The answer is NO.
Nominee here acts just like a trustee. He has the rights to receive the EPF funds of the deceased employee. However, he has no rights to claim the ownership of the fund. The EPF fund should be then distributed to legal heirs of the employee as per the legal heir’s law.
This is the reason it is always best that EPF nomination should be your legal heir itself. Otherwise, you will create a legal tussle with your family in your absence.
How to check EPF Nomination details online?
Using the EPFO Unified portal, you can check the EPF Nomination details online. The process is simple.
# Login to Unified Portal.
# Under Manage Tab, you have to select the option e-Nomination.
# Once you click there, then you will find the nomination details linked to EPF accounts.
How to update or change EPF Nomination online?
# Visit Unified Portal. Login with your user credentials.
# Under “Manage” menu, you have to select “E-Nomination” option.