Transferring Units to Your Heir
If a unit holder passes away, here’s how the units can be transferred to a nominee, or legal heir or even to a joint holder.
The procedures could vary slightly between various funds, but basically these are the procedures to follow.
What should one do to transmit the units if the first holder passes away?
a)In the case of joint holders, the surviving unit holder/s have to write to the Fund or to the Registrar requesting that the units be transferred. A sample of the letter is usually available in the websites of all mutual funds.
b) Attach a photocopy of the death certificate. It should either be attested by a gazette officer, bank manager or a notary.
c) Provide the bank account details of the first holder along with a cancelled cheque. Some funds want the cheque bearing the name of the first holder. If this is not available, get the details attested by the bank manager. The format for this letter is available with the fund’s registrar or Asset Management Company (AMC).
d) Attach a copy of the Know-Your-Customer (KYC) acknowledgement of the surviving unit holders.
Once the fund gets all the documents, it will delete the name of the dead holder. The units will remain in the name of the other holder/s.
What happens if there was only a single holder, who had registered a nominee? Is the procedure the same?
The nominee has to send a letter to the fund/registrar asking for the units to be transmitted to him/her. The other documents are also similar to the above case.
If the money to be transferred is Rs.1 lakh or more, the nominee has to execute an indemnity bond. A sample is available on the website of all AMCs.
If the nominee is a minor, provide proof of birth. The minor’s guardian must also provide an attested copy of his/her ID.
What happens if the sole holder did not register a nominee?
The legal claimant must provide like in the earlier cases, a letter to the fund seeking transfer of the units, a copy of the death certificate, bank account details, KYC acknowledgement, indemnity bond.
In addition to these, each claimant must also provide an individual affidavit, listing all the legal heirs.
If the amount to be transferred is below Rs.1 lakh, any appropriate document showing the relationship with the deceased is sufficient. If the amount is Rs.1 lakh or more, any one of the following documents is required: A notarized copy of the probate will, or legal heir certificate, succession certificate, claimant’s certificate issued by a court, or Letter of Administration in case of a person who died without leaving a will.
All this can be tiring. To make the transmission process easy, please ensure that you register a nominee in your folio.