The pandemic has claimed many lives. In fact, families affected by this will not only have to deal with loss of their loved ones, they have to look into various financial formalities. These are sensitive times and MFDs should walk the path with such families empathically and guide them through the relevant asset transfer formalities.
If the deceased had earlier informed his/her family about assets and liabilities then it becomes easier for survivors to complete the requisite formalities. However, it can get difficult in other cases. Cafemutual approached Dhawal Sharma of Urja Financial Services and Viral Bhatt of Money Mantra to understand how MFDs can extend their support to such families.
Make a comprehensive list of assets and liabilities
Both Dhawal and Viral follow the practice of maintaining comprehensive details of their client’s investments. However, there may be instances where the deceased might have invested in other avenues, borrowed funds or invested directly. In such cases, the table below could be helpful.
Viral shared a list of few documents that can be useful for gathering such details.
|
Document |
Source of information for |
|
Bank account statement |
Investments |
|
NSDL Consolidated Account Statement |
Capital market transactions |
|
CAMS Consolidated Account Statement |
Mutual fund transactions |
|
Credit score report by Cibil, etc |
Insurance premiums |
|
Credit card statement |
Loans and liabilities |
Dhawal said that MFDs could also share PAN and other requisite details with fund houses to confirm if the deceased invested in any of their mutual fund schemes.
Inform financial institutions and check for nominations registered
MFDs should guide survivors to inform the respective financial institutions about the demise. Registered nominations must also be checked for. In case the deceased has not made nominations, survivors should be introduced to a lawyer for availing proficient guidance and succession certificate.
Introduction to the right expert
Survivors who are yet to overcome the loss of their loved ones may find it difficult to understand whom to approach for other technical aspects. MFDs can make it easier for them by introducing them to the right experts. For instance, a lawyer for succession certificate, an insurance advisor for insurance claims and a chartered accountant for filing returns on behalf of the deceased.
Things to be kept in mind once the portfolio is transferred
Dhawal believes that the loss of an earning member leads to financial strain. Further, they must be given five to six months to settle down. Thereafter, MFDs can make the required changes in the portfolio to align it with the goals of survivors.
Viral stated that MFDs should ensure that survivors register their nomination and avail adequate term insurance cover to protect other family members from any such unfortunate events.
