Mutual Fund

How to withdraw investments after death of investor?

  •  Everybody lives for his family, and that’s why we human are counted as social animal- the most intelligent animal on the planet.
  • People invest money to ensure the financial well-being of his family. To be sure after his/her death, his family isn’t depends on anyone but they can remain on their own- with the help of his/ hers investment.
  • But how his/her beloved ones withdraw the investment when the investor is no more?
  • Then the answer is here- if an investor passes away during lock-in period of his investment. There are certain rules to withdraw his investment, but unfortunately the same rules aren’t applied for all kind of investment- there are different rules for different instruments.

 ELSS (Equity Linked saving Scheme):

This scheme has a three year lock in period but if an investor passes away before the lock-in period, the nominees can withdraw money before the lock-in period ends- if a year has passed since allotment.

 PPF (Public Provident Fund):

This fund has a fifteen year lock-in period but if an investor passes away during the lock- in period, the nominees can withdraw investment, providing necessary documentation.

 FD (Fixed Deposits):

Fixed deposits have different lock-in periods within the rules of bank and selection of investor but if an investor passes away during lock-in period, the nominees can withdraw the investment during lock-in period.

 GOI bonds, corporate deposits:

GOI bonds can be transferred to the nominee but it isn’t possible to withdraw investment. On other hand in corporate deposits everything depends on the terms and conditions of different corporate deposits.

What documents needed?

The nominee mostly needed requisite forms attached with documents like copy with death certificate, investment papers, affidavit by claimant, letter of indemnity, latter of administration and an assessed copy of probate of will.

Some Important terms

  1. In Hindu Avibhakta Kutumba known as Hindu Undivided Family (HUF) if the Karta passes away, the new Karta will take over the PPF account.
  2. Nominees are just to act as a trustee and there to distribute the withdrawn amount among legal heirs.

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