Legal heirs for unit holders of funds

Investor queries are received on the requirements for transmitting units to a nominee/joint holder/legal heir(s) on the demise of a unit holder. We address them here.

JOINT HOLDING

The following documents are required on the demise of the First Holder if there are joint holder(s):

— Letter from the surviving unit holder(s) to the fund requesting for transmission of units. A format of the letter is available at the Asset Management Company (AMC) websites.

— Death certificate in original or photocopy notarised or attested by a gazetted officer or a bank manager.

— Bank account details of the new first unit holder, along with a cancelled cheque leaf. Some funds insist on the investor name being printed on the cheque leaf.

If not available, the bank details should be attested by the bank manager of the new first holder. A prescribed form is available with the Registrars / AMCs.

— Proof of Know-Your-Customer (KYC) verification of the surviving unit holders, if not already available.

— Guardian details and KYC proof of the Guardian if the surviving holder is a minor.

On receipt of the documents, the mutual fund will delete the name of the deceased holder from the records, and the holdings will remain in the name of the remaining holder(s).

SINGLE HOLDER

If there is a single holder, and the deceased has registered a nomination, you will need some more documents for transmission of units. Along with a letter from claimants to the fund/registrar and the notarised death certificate as mentioned previously, the following details are required:

— Complete bank details of the claimant with signature attested in original by the banker.

— Proof of KYC Verification / KYC acknowledgement of the nominee(s).

— If the transmission amount is 1 lakh or more, an indemnity bond (format available with AMC) is to be signed and executed by the nominee.

— Proof of Date of Birth if the nominee is a minor, along with the guardian's attested identity proof and KYC compliance proof.

NOMINEE NOT REGISTERED

In cases where the nominee isn't registered, what are the requirements? Along with the claim letter, notarised death certificate and bank details (mentioned previously), an original cancelled cheque mentioning the account details and investor name must also be attached. You will also need: KYC acknowledgement of the claimant(s); an Indemnity Bond from the legal heir(s); individual affidavits from legal heir(s) giving details of all the legal heirs of the deceased. If the transmission amount is below 1 lakh, any appropriate document evidencing the relationship of the claimant/s with the deceased unit holder(s) should be produced. For an amount more than Rs 1 lakh, a notarised copy of the probated will, or legal heir certificate / succession certificate / claimant's certificate issued by a competent court, or letter of administration, in case of intestate succession, needs to be attached.

To facilitate smooth transmission process, investors are encouraged to register nominees for all their investments.

(Contributed by CAMS Viveka, an Investor Education Initiative from CAMS. The views expressed herein are general practices in the Mutual Fund industry and may vary on a case-to-case basis.)

COMMENT NOW