Part 2: What Happens to Your Assets When You’re Gone? Succession Rules for Indian Families

When someone passes away, even something as simple as accessing their bank account or mutual fund investments can become complicated without clarity on nominations, joint ownership, Wills, or Trusts. In this article, we dive into how different assets in India are transmitted to heirs after death—and what documentation is required for a smooth transfer.

Scenario: Single holder

• If there’s a nominee, banks release funds to the nominee after verifying the death certificate and nominee’s ID.

• However, the nominee is just a trustee, not the legal owner. Legal heirs can still claim a share through court.

If there’s no nominee:

• Bank may insist on:

  • Succession certificate (if no Will)

  • Probated Will (if Will exists)

• Processing can take 1–6 months depending on clarity of documents.

Scenario: Joint Account

• If operated Either or Survivor, the surviving holder can continue access.

• If Jointly operated, it depends on bank policies—usually freezes till transmission.

If Nominee Exists:

• SEBI circular (2022) simplified process for claims under ₹5 lakh:

  • Only death certificate and nominee ID/address proof required.

• If value > ₹5 lakh:

  • AMC may require a Will or indemnity bond.

  • In absence of Will, some AMCs may insist on a succession certificate.

  • Joint holders (if any) take precedence.

If No Nominee:

• AMC will need:

  • Death certificate

  • Notarized indemnity bond

  • Legal heir certificate or succession certificate

• Nominee can get shares transferred after submitting:

  • Death certificate

  • Transmission form (TRF)

  • KYC + PAN of nominee

• If no nominee: Legal heir(s) need to get:

  • Notarized affidavit

  • Succession certificate or probated Will

• Process takes 2–8 weeks

• No automatic transfer—even if nominee exists.

• Requires:

  • Death certificate

  • Will (if available) + Probate

  • Legal heir certificate if no Will

  • Mutation of property in revenue records

Without a Will, legal heirs may have to go to court, especially if there are disputes. Joint ownership helps, but co-owner still needs to update land records.

• Nominee can claim funds after providing death certificate and ID/address proof.

• If nominee is a minor, guardian will claim on their behalf.

• If no nominee:

  • Legal heirs must submit succession certificate

• No joint holding allowed.

• EPFO pays nominee as per Form 2 filled during employment.

• Claims must be made via employer or online (via Unified Portal).

• If no nominee:

  • Legal heirs must submit:

    • Succession certificate/legal heir certificate

    • Death certificate

    • Claim form (Form 20)

• Processing time: 30–90 days

• Nominee files claim with:

  • Death certificate

  • Policy documents

  • Claim form

• Insurance company may do investigation (for early claims)

• Payment within 30 days if paperwork is in order.

Even here, nominee ≠ legal heir unless named as “beneficial nominee” (per IRDAI rules after 2015).

• Upon death:

  • Nominee gets corpus (lump sum or annuity)

• Documents needed:

  • Death certificate

  • Claim form

  • Nominee ID/KYC

• If nominee is not updated: Legal heir needs succession certificate

• No formal process unless locked in a bank locker

• If stored at home, distribution governed by:

  • Will, or

  • Mutual agreement among heirs

• For bank lockers:

  • Bank allows nominee to access contents (under witness) after paperwork

  • If no nominee: Court order or succession certificate required

• No formal laws in India yet

• Important to:

  • Mention access details in Will or passcode manager

  • Appoint a digital executor

• Without access: families can’t claim data, assets, or cancel subscriptions

Don’t leave your loved ones with paperwork, confusion, and legal fees. Plan now, and give them peace when they’ll need it the most.

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