Nominees of MFDs are entitled to receive trail commission post the death of MFD. However, what if the distributor has not nominated anyone or what if the distributor and the nominated family member die.
In such cases, legal heirs have to contact AMCs individually to claim trail commission. The first step in this process is to establish oneself as a legal heir. This is a lengthy process that requires one to obtain documents from the notarized and legal authorities.
"If nominee is not registered, the legal heir has to follow well established process as may be required in any other financial institution. One has to establish that he/she is a legal heir either through a will or legal heir certificate by a competent court, provide NOCs from all other possible claimants, etc. One must check with respective organisations for the same, " said Deepak Jain, Executive VP and Head-sales at Edelweiss.
Legal heir can claim MFD’s commission by submitting following documents with AMCs:
- Request letter from the claimant
- Copy of death certificate (attested in original)
- Legal heir certificate (attested in original)
- NOC from all legal heirs
- Nominee PAN number (if nominee details registered)
- ARN card copy
- Bank details with cancelled cheque copy of claimant
What if the nominee details are wrong?
The spelling of the nominee's name may be registered incorrectly at times. In such cases, the nominee will have to prove that he/she is the same person whose details are registered in the nominee form. They can do so by procuring a 'One and the same person' affidavit.
"The nominee would have to establish that he/she is the same person by way of an affidavit and supporting documents. For instance if the relationship is also mentioned in the nominee details, the nominee can prove that it's just a spelling mistake by presenting documents that establish the relationship & that no other person could have been that person so mentioned " Jain said.
