Procedure for Mutual Fund Withdrawal on death!

Care you when it requires you the most.

Redemption of money is very much required, in case of death of the investor, The family should not suffer, for the money of the death member, when it needed the most. So, it is the humble try to bring relief to the left family members.

Redemption is of two kinds i.e,

  1. Redemption in Share Market.
  2. Redemption in mutual funds.

Here is a way of what to do and what no to do.

Redemption of investment in case of Share Market.

In the transmission case, in Shares i.e stock, the nominee should have a demat account. Note, if the nominee shouldn’t have demat account then first the nominee should open the demat account.

The transmission process is as follows :

  1. Account closure form of the deceased holder (in which the client signature will be blank).
  2. Original death certificate which should be notarized.
  3. Present holding Statement.
  4. Nominee Client Master.
  5. Transmission form from respective Brokerage House.
  6. If there is no, nominee registered then a succession certificate is required for the transmission.

Redemption of investment in Mutual Funds.

How to get money, if the death investor have done mutual fund.

When Nominee is not registered

  • Letter from claimant/s to the Mutual fund company.
  • Death Certificate/s in original or photocopy duly notarized or attested by gazette officer or a bank manager. 
  • Bank Account Details of the new first unit holder along with attestation by a bank branch manager and original cancelled cheque bearing the account details and account holders name.
  • FATCA of the claimant/s( declaration that the income belongs to India).
  • Indemnity Bond from legal heir/s
  • Individual affidavits from legal heir/s 
  • If the transmission amount is below 1,000,000 (Ten Lacs) – any appropriate document evidencing relationship of the claimant/s with the deceased unit holder/s. 
  • If the transmission amount is 10000000 i.e .10 lakh or more, the anyone of the following is required :
  1. Notarized Will of the death member. or
  2. Legal Heir Certificate.or
  3. Claimant certificate issued by Court.

Redemption Process in case of nominee is registered.

  • Letter from registered nominee to Mutual fund company.
  • Death Certificate in original or attested by gazette officer,or a bank manager.
  • Bank Account details of nominee , bank manager attestation and an cancel cheque.
  • KYC of nominee.
  • FACTA Declaration As all income is from India only.

Redemption process in case of either or survivor.

  • Letter from surviving unit holder to mutual fund company for request of redemption.
  • Death Certificate in original or attested by gazette officer or a bank manager.
  • Bank Account details of new first holder, bank manager attestation and an cancel cheque.

Hope, it is beneficial to you. If yes, share with your friends those invested in mutual funds or equity.

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