How will mutual funds be transferred in case of ‘either or survivor’?
Do keep in mind that neither joint holding nor nomination creates a legal ownership towards funds lying in your joint investments
Both my wife and I have joint investments on ‘either or survivor’ basis. Our child is the nominee for all our joint investments. Now if in this case the first holder dies why is the DP or the mutual fund company required to be informed about the death of the first holder, unless it is proposed to add any name and on death of both holders the DP would be sent the death certificates and they can transfer the investments to the nominee.
The purpose of nomination is easy operation of account after the death of account holder (s). Do keep in mind that neither joint holding nor nomination creates a legal ownership rights on the funds lying in your joint investments. There are some mandatory procedures to be followed in case of mutual fund nomination and joint holding. The death of either account holder has to be informed to your mutual fund company and/or Depositary Participant (DP) to ensure that the accounts are up to date with all relevant information.
In case of the demise of the first holder, units will be transferred to the surviving unitholder for which the following documents are to be submitted:
- Letter from the surviving unit holder intimating the death of the first holder.
- Death Certificate in original or photocopy duly notarized or attested by gazette officer
- Address, bank details, PAN of new first holder.
- Know Your Customer (KYC) of the surviving unit holder(s), if not already available.
- In the case of demise of the second holder units will continue to remain in the name of the first unit holder. The first unit holder has the option to register any other person as a joint holder, for which the following documents are required to be submitted:
- Letter from the surviving unit holder(s) intimating the death of the joint holder.
- Copy of the death certificate of the joint holder duly certified in original by bankers/AMC.
- Name, PAN, signature of the new holder.
- Know Your Customer(KYC) of the new holder.
In the case of demise of both holders, 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
- Declaration and indemnity against any other claim, if the amount isR1 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.
To know more Contact on 8693800025
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