Question for distribution purposes, does the payout go to the estate of my late brother or the appointed beneficiary?
بسم الله الرحمن الرحيم
The person (brother) did not become owner though he was nominated as the sole 100% beneficiary, rather your deceased brother shall remain the sole owner of the whole investment. Now it will be inherited by heirs and all his Shari’ah heirs shall have their rights as per their shares. Had you been written the details of all the heirs we would have written the share of each heir.
Note: To nominate someone is not in place of hibah as it is mandatory for hibah to take place that the gifted thing is given into his/her complete possession which is missing here. Similarly, it is not in place of a will as will is not valid in favour of a heir.
Allah knows Best!
Darul Uloom Deoband
This answer was collected from the official ifta website of Darul Uloom Deoband in India.