Claiming The Asset after Death (Part-1)


If an individual dies intestate, i.e., without a will, then his/her legal heirs will need to get a legal heir certificate or a surviving member certificate from the authorities to prove that they are indeed the legal heirs of the deceased person. A legal heir can apply for any one of the certificate Either one of these certificates will help in transferring assets of the deceased person such as property, money in the bank account, fixed deposits, mutual funds etc. to their names. legal heir certificate may be obtained from district court, whereas an application for surviving member certificate is to be submitted at the office of district magistrate.
Important document needed to claim your asset
Here are the list of four important documents that you required to claim an asset after the death
1. The Death Certificate: One of the important documents needed at this time is Death Certificate . This certificate certifies officially that the person in question is dead. Death certificates also are an official record of date and time of death, in most cases is also crucial information for a life insurance claim.. The Death Certificate is generally issued by the Municipal Corporation (Urban areas) or Gram Panchayat (in the case of rural areas) after the death is properly verified. The procedure of getting a death certificate differs depending on the kind of death. Little is needed if the death occurred at home from natural causes. A copy of the FIR may also be necessary, though, if the death was the result of an accident, a murder, etc. Regardless of the existence of a WILL or nominations, this certificate is a requirement for all institutions, including banks, fund houses, and insurance companies.
2. Claim Application Form: This form needs to be filled by you at the time of making claim. Depending on the asset type, the organisation will provide you. Each bank has its own claim application form, Post Office has its own and mutual funds companies have their own forms. You also have to give your bank details or other KYC details if the assets has to be transferred to your account like in case of shares in demat account or mutual funds portfolio.
3. Probate of WILL: One needs to register the WILL. A “Probate of WILL” is required from Court which certifies that the WILL is authentic. So if you have to claim an asset and the WILL you have is questioned, you will need to get Probate from court to prove that the WILL is authentic.
4. Succession Certificate: Succession Certificate is necessary when there is no written WILL, absence of nomination, or when your names is not on nominee list, but you want to claim the asset because you are legal heir. At that time, you will have to bring succession certificate from court, which is a proof that you are a valid legal heir. To get succession certificate, One can reach to district or high court of that jurisdiction, under which the assets fall (bank or property location) for obtaining a certificate
5. Letter of Administration (LOA): LOA is a document issued by the court to give authority to a person to administer the estate of a deceased person. One needs to note that the jurisdiction of the property (movable or immovable) or where the dead person resided will determine which district judge will hear the petition for LOA.For LOA, one must file a petition in a specific format in the appropriate court, pay the fees, and wait for any objections, if any, since the court would send the notification of the claim to all legal heirs. If nobody objects to the filed petition, the court will then grant an LOA.
How to Access the deceased bank account asset
Legal heirs may access a deceased person’s bank account with little difficulty, although occasionally this can be hard owing to people’s misunderstanding of the processes, particularly when nominee information are missing. A payable on death account, also known as a transferrable on death account, is one in which many banks enable their clients to designate a beneficiary. When the bank learns of the account holder’s passing, it delivers the cash to the designated beneficiary if one was named by the account holder. The banking institution usually shuts the account after that.
In Case of the sole Account :-
When a bank account is formed in one person’s name and a nomination is made, the procedure is simple, and the bank will pay the nominee the remaining balance in the dead depositor’s account.In the absence of a nomination, the bank will only release funds to the beneficiaries after receiving the required paperwork, and this will depend on the account balance.
In case of Joint Bank Account :-
A “survivorship clause” (also known as a “either or survivor,” “anyone or surviv,” “former or sur,” or “latter or sur”) is frequently included when opening a joint account. In such circumstances, the account balance would be given to the survivor following the death of the account holder. If there is no survivorship clause and one of the account holders dies, the banks will pay the money to both the remaining account holder and the deceased individual’s rightful heirs.Payment will be provided to the nominee or, if no nominee is indicated, to the heirs of the last deceased account holder in either scenario if all account holders have died away..
The Process
1. After notifying the bank about the death, the bank will check for survivor/ nomination clauses. And if there is one, it will ask the nominee to settle the account, provided they have a death certificate and submitted a death claim application.
2. If no survivor or nominee is added to the account, all the legal heirs of the deceased shall jointly submit a legal representation supported by a legal heir-ship certificate, family membership, relationship certificate, etc.
3. After the bank receives all the documents, it will ask for a sanction letter and papers like a death claim application, indemnity application, notarized affidavit (in the absence of legal heir certificate), payment receipt, letter of authority, etc., from the state sanctioning authority.
What happened If an account holder dies without the will
If someone passes away without a will, their bank account will be transferred to the beneficiary, but if they passed away without knowing who the nominee was, the executor of their estate is in charge of managing all of their assets, including any money in bank accounts. The administrator will distribute the funds in accordance with the state’s intestate succession laws (which specify what occurs to property if an individual passes away without a will) after the probate process is completed if there is no will to name an executor.
Pension after death
The family pension is the sum of money given to the beneficiaries of a government employee who passes away while still working. The death gratuity is what it is called. The widow or widower receives the family pension. The offspring of a government employee are given the family pension if there is no widow or widower. To obtain the pension, the departing executor must submit an application for a grant of representation certificate to the probate register in Oder. To be eligible for the pension benefit, the employer must have been a member of a pensionable establishment on January 1, 1964, or earlier, and the date of hire must have been December 31, 2003.
Who can receive family Pension
Pension accounts, usually held in single names, are often without nomination. Hence, it is tough for claimants to take the money after the death of the pensioner. Banks insist on tedious paperwork before paying the claimants to ensure that there is no dispute.By default wife of the serviceman (herein refer as spouse) can be a claimant of the pension but if in case Spouse is dead her pension will not lapse but in the following circumstances her share of the family pension will become payable to her child or children who fulfill the eligibility conditions of the family member ,
1. Unmarried son who is below 25 or divorce daughter who is not earning (no age limit specified)
2. A child who is mentally ill and is not able to earn his livelihood (no age limit specified)
3. Dependant Parents and Siblings
How can family member received pension
The family pension is paid to the pensioner’s family members after their death in accordance with the regulations established by the Department of Pension and Pensioner’s Welfare (hence referred to as DoPPW)..
Here is a step by step guide on how one can claim pension after the death of a pensioner-
1. You have to approach the pension paying bank along with the Pensioner’s half of the PPO (Pension Payment Order) and Death certificate.
2. If the Pensioner has a joint account with the spouse, they will have to submit the death certificate and a simple application to activate the pension. However, if the Pensioner does not have an account, they will have to open a bank account in that branch.
3. The bank will verify the identity of the family members by demanding their Kyc documents
4. The bank will update the date of death ; to activate the pension plan. Half of the Pensioner’s PPO will be returned to the spouse or if spouse is dead to its leaving children.
5. After completing all the formalities, the bank will intimate the CPPC and start crediting the pension to the family member’s bank account.
What if Individual name is not there in the official record
Following the regulations established by the Department of Pension and Pensioner’s Welfare (hence referred to as DoPPW), there are certain criteria for how the family pension is paid to the pensioner’s dependents after their passing.
It is crucial for a person’s family to divide their assets in a legally acceptable manner following their death. If the family member kept an accurate account of their assets and distributed it, this would be somewhat simpler. Regarding the assets, there are a number of things to take into account. Your estate will end up in probate court if you don’t have a will or if your intentions regarding distribution are unclear. Accordingly, a probate court will decide what ought to be done with your assets in accordance with the rules
of your state.Furthermore, your surviving family members will struggle to identify and claim the money and goods you want them to receive if you pass away without leaving clear documentation of your assets and where they are. In other words, not having a will and not keeping track of your assets leaves your heirs with a
huge problem.