How to redeem mutual fund units after a parent's death? | Value Research Let's have a look at how one may get their father's mutual fund units redeemed/transferred after they pass away
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How to redeem mutual fund units after a parent's death?

Let's have a look at how one may get their father's mutual fund units redeemed/transferred after they pass away

Let's assume a scenario where a father had invested in the 'Dividend' plan of UTI Mastergain in May 1992 when the scheme was launched. The worth of 500 units would have now turned to around Rs 75,000. He would have invested around Rs 5,000 at that time (500 units at an NAV of Rs 10) - that's an annualised return of close to 12 per cent.

Before we move on to telling how you can get these units transferred in your name, note that the name of UTI Mastergain was changed to UTI Equity Fund in 2005. And now, it has further changed to UTI Flexi Cap Fund.

Getting the units of a mutual fund scheme transferred in the name of the nominee usually requires submitting the below documents with the fund house:

  • Transmission request form (Form T3): It's a request form to get the units transferred in the name of the nominee or a legal heir. You can download the form from here.
  • Death certificate: The original death certificate copy of the father would be required. The fund house may settle for an attested copy by a gazetted officer or a notary public.
  • KYC documents: You will have to submit a copy of your PAN and address proof in order to fulfil the KYC requirements.
  • Cancelled cheque: A cancelled cheque of your bank account where you wish to receive the funds when redeemed.

However, if the nomination is not registered in the records of the fund house, you will have to submit the following documents in addition to the above.

  • Attestation of your signatures by the manager of your bank in a prescribed format - Annexure-1a. Click here to download it.
  • Any appropriate document evidencing your relationship with father. Documents like PAN, birth certificate or passport which have the father's name should usually suffice the requirement.
  • An indemnity bond in a prescribed format (Annexure-II) by all other legal heirs. This is primarily a confirmation sought by the fund house that they have no issues with you claiming the money alone. Annexure-II can be downloaded from here.

Once the units are transferred in your name, you can place the redemption request. And the funds would get transferred to the bank account of which you had given the cancelled cheque.

Suggested read: Can I gift a mutual fund to someone?


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