What Happens to the Mutual Fund Units After the Investor Passes Away?

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A nominee is someone who takes care of your assets and can claim these assets in case the investors pass away. It is essential to review your nomination now and then, especially at different stages of your life, such as marriage, death of a family member, childbirth, etc. This will even make sure that your money goes to the person that you choose after your death.

In this world of the modern digital era, it is obvious that you would not have stored any investment statement or receipts in your almirah that your family members will find after you die. Thus your nominee moreover needs to be aware that he or she has been nominated by you. This makes it essential for your nominee to have some idea about your investments and how to claim them.

Read on to find more about the transmission of units in mutual funds to your nominee or your join holder.

The nominee needs to submit a list of documents to mutual fund houses, depending on the scenario. Some different forms and annexures can be downloaded from the websites or from AMFI, which is the mutual fund regulator.

The transmission of units in case of the death of the sole or all unitholders.

  • Transmission request form
  • Death certificate of the deceased in original or in photocopy, which has been attested by a Notary Public or Gazetted Officer.
  • A copy of the certificate of birth in case the nominee is a minor.
  • A copy of the PAN Card of the nominee, in case the nominee is a minor.
  • KYC form filled by the nominee, in case the nominee is a minor.
  • A canceled cheque with the name of the nominee or a copy of the passbook or bank statement of the nominee, which is not more than three months old.
  • If the transmission is around INR 2 lakhs, the nominee will have to submit a signature attested by the bank manager. In case the nominee is a minor, the signature of the guardian also needs to be attested.
  • If the transmission amount is more than INR 2 lakhs, a signature of the nominee needs to be attested by a notary public or a JMFC.
  • The transmission of units to the nominee in case of the death of the sole unitholder or all unitholders.

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