A person or entity designated to hold legal title to property on behalf of another person (the beneficial owner). The nominee's name appears on legal documents, but they hold no beneficial interest and must act according to the beneficial owner's directions.
Someone who holds property in their name on behalf of the real owner. The nominee's name is on the legal paperwork (share register, title deed), but they don't own or control the property for themselves—they're holding it for the beneficial owner. Common in share trading accounts where your broker's nominee holds shares on your behalf. Can complicate estate planning if not properly documented.
⏱ When you'll encounter this term
- Share trading accounts and investment brokers
- Property held for privacy or administrative reasons
- Estate planning with complex ownership structures
- Accessing nominee-held assets after someone dies
- Discretionary trusts and asset protection structures
"When I checked my share trading account, I noticed the shares were registered to 'XYZ Nominees Ltd' not to me personally. My broker explained they hold the shares as nominee on my behalf—I'm the beneficial owner."
💡 Did you know?
Nominee-held assets can cause serious estate planning problems if not properly documented. When you die, your executor may struggle to prove you were the beneficial owner, especially if there's no written nominee agreement. Always keep records of nominee arrangements with your will.