A nominee is not legal heir. That is court judgement. Nominee is a trustee is just a conclusion drawn from the judgment. There is no law which says that a nominee is a trustee. A person can be appointed as a trustee only if he accepts the the position. A nominee is not bound under any law to go in search of the legal heir. There are many laws containing provision for nominee. Judges have been intrepreting that a nominee is not beneficial owner. In the case of insurance law the section has been amended to state that if the nominee is one of the specified relatives, he will be the beneficial owner of the property. The specified relatives happen to be legal heirs under Succession Law. It is high time that the law is amended in all other cases also. In the case of cash if the nominee is not a legal heir, he should hold it for a reasonable time. If no claimant comes forward within reasonable time, he can use the amount. In the case of immovable poperty, the nominee can do everything as though he is the owner, except that he cannot alienate the property irreversibly. In case he tries to sell the property, no prudent buyer would come forward to buy it.