In case of a mutual fund unit holder dies, how do his family members receive the money?
— PSN Murthy
In case a unit holder dies, the investor's registered nominees can receive the invested sum from the asset management company by submitting the requisite documents. The nominees will need to write to the AMC claiming for transmission of units along with the unit holder's death certificate, which is duly notarised or is attested by a gazetted officer. The death certificate can also be certified by a bank manager along with his name, employee code, bank seal, contact number and signature. One will also need the bank account details of the nominee, who will now become the first unit holder. The nominee also needs to be KYC compliant. In case the transmission sum is more than Rs 5 lakh, the nominee will also have to submit a duly signed indemnity to the fund house.
In case the deceased unit holder has not left a registered nominee, the claimants will have to furnish different documents. The claimant, who are the legal heirs will need to furnish and indemnity bond in the specified format. In the event of more than one legal heir, they will need to submit individual affidavits in the specified format. Further, if the transmission amount is less than the threshold limit of Rs 5 lakh, they will need to furnish any appropriate document that can be used as relationship evidence between the claimants and the deceased unit holder. However, if the transmission amount is equal to or more than the threshold limit, the need for a notarized copy of the probated will, or legal heir certificate or succession certificate or the claimant's certificate issued by a competent court, or letter of administration, in case of intestate succession.
This article was originally published on February 14, 2013.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
