A person may apply for single holding or maximum three persons may apply for joint holding and may choose to nominate no one or may choose to nominate maximum three persons.
Nomination is optional while applying to invest in a mutual fund (MF) scheme either singly or jointly. A person may apply for single holding or maximum three persons may apply for joint holding and may choose to nominate no one or may choose to nominate maximum three persons.
In case of joint holding, the name of the second and/or third holder may be removed from the folio after the holder(s) death or the holding may be transmitted to other holders after the death of the first holder on request.
However, what would happen after the death of a single holder or all the joint holders in case they failed to nominate anyone?
In such a case, a person mentioned in the Will of the MF unitholder(s) or a legal heir or a relative may claim the investment money.
To make things easy in such cases, the Association of Mutual Funds in India (AMFI) has issued the procedure of transmission of units to the claimant/s on death of sole unitholder or all unitholders, where there is no nomination registered.
The Claimant has to submit the following documents:
i. Transmission Request Form (Form T3) for Transmission of Units to the Claimant
ii. Death Certificate of the deceased unitholder(s) in original OR photocopy duly attested by a Notary Public or a Gazette Officer.,
iii. Copy of Birth Certificate in case the Claimant is a minor.
iv. Copy of PAN Card of the Claimant / Guardian (in case the Claimant is a minor).
v. KYC Acknowledgment OR KYC Form of the Claimant / Guardian (in case the Claimant is a Minor)
vi. Cancelled cheque with the claimant’s name pre-printed OR Copy of the Claimant’s recent Bank Statement/Passbook (which is not more than 3 months old).
If the transmission amount is up to Rs 2 Lakh –
a. Bank Attestation of signature of the Claimant by the Bank Manager as per Annexure-Ia. In case the Claimant is a Minor, the signature of the Guardian (as per the bank account of the Minor or the joint account of the Minor with the Guardian) shall be attested.
b. Any appropriate document evidencing relationship of the claimant/s with the deceased unitholder/s.
c. Bond of Indemnity – as per Annexure-II to be furnished by Legal Heirs for Transmission of Units without production of Legal Representation.
Provided that in case the legal heir(s)/claimant(s) is submitting the Succession Certificate or Probate of Will or Letter of Administration wherein the claimant is named as a beneficiary, an affidavit as per Annexure-III from such legal heir/claimant(s) alone would be sufficient; i.e., Bond of Indemnity is not required.
d. Individual Affidavits to be given by each legal heir as per Annexure-III
e. NOC from other Legal Heirs as per Annexure – IV, where applicable.
If the transmission amount is more than Rs 2 Lakh –
a. Signature of the Claimant duly attested by a Notary Public or a Judicial Magistrate First Class (JMFC) in the space provided for signature attestation in the TRF itself below the signature of the claimant. In case the Claimant is a Minor, the signature of the Guardian (as per the bank account of the Minor or the joint account of the Minor with the Guardian) shall be attested.
b. Individual Affidavits to be given each legal heir as per Annexure-III
c. Any one of the documents mentioned below:
. Notarised copy of Probated Will; OR
. Succession Certificate issued by a competent court; OR
. Letter of Administration or court decree, in case of Intestate Succession.