10 months ago
How to Claim Deceased Holder's Mutual Funds and Bank Investments
Imagine someone you know has passed away and had money in the bank or in special investment funds called mutual funds.
It can be tricky to get that money because it belongs to them.
First, you need to find out where their money is, like checking old bank statements or investment papers.
Then, you contact the bank or the investment company and tell them the person has died.
You'll need to fill out some forms and show important papers like the death certificate.
If the person named someone specific (a nominee) to get their money, it's usually simpler.
If they didn't name anyone, you might need to get special papers from a court or government office to prove you are the rightful person to receive the money.
Once everything is checked, the bank or investment company will either give you the money or transfer the investments to your name.
It's like following a recipe to make sure the money goes to the right person safely.
Claiming mutual fund and bank account investments of a deceased requires specific documentation and procedures for heirs.
Approximately Rs 25,000 crore in shares and Rs 80,000 crore in bank deposits are currently unclaimed in India.
To claim mutual funds, heirs must identify the folio/AMC, contact the registrar (like CAMS/KFinTech), and submit a claim form with supporting documents including a death certificate.
Claiming bank accounts involves contacting the home branch, submitting a death certificate, claimant's KYC, and a claim form; a survivorship clause simplifies claims for joint accounts.
If no nominee is present for mutual funds or bank accounts, legal heir certificates, succession certificates, or probates are typically required, though banks may have simplified procedures for smaller amounts.
- Who
- Heirs, nominees, or legal representatives of deceased individuals.
- What
- Process for claiming mutual fund units and bank account deposits of a deceased person.
- Where
- At the respective Asset Management Companies (AMCs)/Registrars for mutual funds, and bank branches for bank accounts.
- When
- After the death of the account or investment holder.
- Why
- To legally transfer or receive ownership of investments and funds left by the deceased.
With Nominee
Without Nominee
Claiming Mutual Funds
With Nominee
Nominees can claim by submitting a claim form, death certificate, claimant's KYC, and bank proof to the AMC or registrar.
Without Nominee
Legal heirs typically need a legal heir certificate, succession certificate, probate, will, family tree, or affidavit, in addition to the death certificate and claim form, to claim investments.
Claiming Bank Accounts/FDs
With Nominee
Nominees can claim proceeds by presenting their claim form, death certificate, and KYC to the bank. For FDs, the nominee must present these documents to get the proceeds.
Without Nominee
If there's no nominee, legal heirs may need a legal heir certificate, succession certificate, or probate. Banks may simplify the process for small amounts with an affidavit and ID proofs.
Key facts
- Estimated Unclaimed Assets
- Rs 25,000 crore in shares, Rs 80,000 crore in bank deposits.
- Key Documents for Claimants
- Death Certificate, Claimant's KYC (PAN, Aadhaar, etc.), Proof of Claimant's Bank Account.
- Mutual Fund Claimants
- Nominee or Legal Heir.
- Bank Account Claimants
- Nominee, Surviving Joint Holder, or Legal Heir.
- Additional Documents (No Nominee/Disputed Claims)
- Legal Heir Certificate, Succession Certificate, Probate, Will, Affidavit, Family Tree.
- MF Registrars/Agents
- CAMS, KFinTech (formerly KARVY).
Quotes
Article
The news article itself, providing context and statistics.
“A sudden death without nomination or a proper will may become a nightmare for the spouse or children of the deceased, posing a hindrance in acquiring investments in mutual fund and bank accounts.”
news18.com
“According to an estimate, around Rs 25,000 crore worth of shares and about nearly Rs 80,000 crore of bank deposits are lying unclaimed in the country.”
news18.com
