How nominees can claim mutual fund investments

 

How nominees can claim mutual fund investments

by SANKET DHANORKAR,ET BUREAU

We make investmetns not just to ensure our own financial well-being but also that of our loved ones. However, if we are not prudent enough to clearly earmark our assets for our dependants, they may face a hard time staking claim to these after we are gone. So, to secure your legacy and avoid disputes among heirs, you should make a will and complete the nomination formalities for all investments and accounts. These include mutual fund investments, where you can nominate a single person or open joint accounts with up to three people. Here's what to do if a unitholder dies.

Demise of a single holder

If there is only one holder and he dies, the person who has been registered as a nominee will have to provide proof to make claims on the investment. He will have to submit an attested copy of the death certificate, along with the following documents:

- Proof of identity of the nominee (ration card, passport, driving licence, etc).

- Declaration and indemnity against any other claim, if the amount is Rs 1 lakh or more.

- A copy of the account statement issued by the asset management company (AMC).

- Bank account details of the new unit holder, along with attestation by a bank branch manager or a cancelled cheque with the account holder's name.

- Know your customer (KYC) form of the claimant.

Demise of a joint holder

If the first holder dies, the units will be transferred to the second one, for which the following documents are to be submitted to the AMC:

- A letter from the surviving unit holder intimating the death of the first holder.

- A copy of the death certificate of the first holder certified by bankers/AMC.

- Address, bank details and PAN of the second holder.

- KYC of the claimant.

In the case of demise of one of the joint holders (other than the first one), the investment will continue to remain in the name of the first unit holder. He will have the option to register any other person as a joint holder, for which he will need to submit the following documents:

- A letter intimating the death of the joint holder.

- A copy of the death certificate of the joint holder certified by bankers/AMC.

- Name, PAN, signature of the new holder, who is to be registered.

Demise of a holder without nomination

If the single holder or all unit holders die and no nominee has been registered, the legal heirs will have to file an application if they want to claim the investment. This has to be accompanied with an attested copy of the death certificate along with the following documents:

- Bank account details of the new first unit holder, along with attestation by a bank branch manager or a cancelled cheque with the account holder's name.

- KYC of the claimants.

- Indemnity bond from legal heir(s).

- Individual affidavits from legal heir(s).

- A document proving the relationship between the claimant and the deceased unit holder if the transmission amount is below Rs 1 lakh.

- If the amount is more than Rs 1 lakh, the new unit holder will have to submit one of the following documents:

- A notarised copy of the probated will.

- A legal heir certificate/succession certificate/claimant's certificate issued by a competent court.

- A letter of administration, in case of intestate succession.