Finance Management: Nowadays, a large number of people invest in mutual funds. Enrollment of nominee is important while investing, but many times people forget this process or do not update nominee details. If the investor dies and the nominee is not registered in the mutual fund folio, the family has to complete a legal process to get the investment amount.
What if there is no nominee?
Mutual in case of no nominee fund A company or registrar cannot directly transfer money to an individual. The legal heir has to produce necessary documents to prove his right.
In some cases, small claims can be processed without court proceedings based on documents such as affidavits and bonds. For large or complex claims the heir may require legal documents such as a Succession Certificate, Legal Heir Certificate or Probate.
What documents are required?
- Death Certificate of Deceased Investor
- PAN Card of all claimants
- Aadhaar Card
- Proof of residence
- Mutual fund folio details or account statement
- A copy of the will if the investor has made a will
- Legal heirs are required to keep the relevant documents ready. If the will is available, the claim process can be easier for the heirs.
Application to Mutual Fund Company or RTA
After the documents are prepared, the legal heirs have to submit the transmission form to the respective Asset Management Company or its authorized Registrar and Transfer Agent.
A certified copy of the death certificate of the investor and the necessary legal succession certificates are also to be submitted along with this form. The documents and claims are then verified by the fund house and registrar.
How to get money after verification
After completion of verification of all documents and legal claims, the units of the mutual fund are redeemed as per the rules. The amount received is then transferred to the bank account of the authorized legal heir.
This process may take time depending on the documents required and the status of the case. So investors should add nominee details in their mutual fund timely and update it as and when required to avoid any trouble to the family in future.