6 Tasks To Complete When Parents Pass Away

Nobert, commonly called Nobby by near and dear ones, passed away last month due to sudden heart failure. His family is going through a tough time dealing with the loss. Along with this emotional turmoil, Neil, his only son has been running around to get all the paper work organised.

Nobby died intestate (i.e. without a legal Will in place). Furthermore, none of his family members were involved in any of the financial planning activity. This in turn, led to various complications: along with emotional void, Neil had to deal with the stress of documentation.

Mortality is certain.

However, it is the least discussed of human events and one that most people avoid talking about. And hence, many like Nobby fail to plan well for their children.
After the death of a parent, children have to take on all the responsibilities. During this time, the process of claiming any settlement can be a draining exercise.

So, let us look at the tasks which children must look after when parents pass away.

Task #1: Copies of death certificate

First and foremost, keep multiple copies of death certificate in place. Death certificate is the most important document to claim for settlement, transfer of assets, account closure, and so on. Also get these copies attested.

Please ensure that the name of your parent is spelt correctly and is line with his/her official documents such as PAN card and Aadhaar and so on.
If there is discrepancy, it might take more than a month to sort the name change issue and will add on the plight.

Task #2: Collect all the documents and keep them in one place

Next on the list would be to collate all the legal documents in one place.

Keep a note of all bank fixed deposit documents, bank / other financial accounts, and all the investments. Create a list of all the bank accounts and check if there is a joint holder or a nominee appointed.

Keep all the bank-related documents such as account passbook, ATM Card, Credit Card, insurance (life, medical, car, etc.) in one folder. Segregate these financial documents in categories such as: assets, liabilities, utilities, and income.

Create a separate folder of utility bills and their account numbers. If that was on their name, you probably need to get them transferred on your name.

Also, if your parent was working, do not forget to claim the employment insurance benefit.

Task #3: Look for the Will/ Nominee

Now check if your parent had appointed a nominee or has written a Will. A Will is the legal declaration of the intention by the one making it, the testator, with respect to property that he/she desires to be carried into effect after death.

Having a nominee in place simplifies the transfer/withdrawal process. Nomination is a facility that enables you, an individual unit-holder, to nominate a person who can claim the transfer of your Mutual Fund Units thereof in the event of your death. But, Nominee is just a trustee of these assets and does not have legal rights on them.

Hence, if your parent has not prepared a Will nor has appointed a nominee, then you will need a Succession certificate. This is valid only for movable assets. This can be obtained from a district court.

For immovable properties, the succession rule as per the religion or country’s law is applied. And the assets will be distributed among all the legal heirs.

Hence, it is very important to write a Will. It ensures that your assets are passed in accordance to your wish.

(Read this article: 10 Points to consider while writing a Will)

Task #4: Check for pending loan/credit settlement and other expenses

Check if your parent has any kind of pending loan or credit card payment. If there are any credit card payments due, it is best to clear them off at the earliest because these are one of the most expensive loans.

Also, there would be a list of utility bill payments such as electricity, water, gas, cable subscriptions, internet, insurance premiums, and so on. If these bills were being paid direct through their account via ECS, you need not worry. But if these payments were being paid manually, you will need to arrange to pay them.

At such times, having a joint account holder or a nominee is important. This is because you can still have access to account and make immediate bill payments.

(Don’t miss this article: 6 Smart Ways to Pay Your Utility Bills)

Task #5: Inform all the financial Institutions

Most people are aware about apprising the insurance companies for claim settlement. But are unaware about informing the banks, mutual fund houses, and other financial institutes.

This step is important because if the account is of single holding, then you either need to close that account or can transfer the account on your name.

In either case, you must check for all the necessary required documents and start the procedure at earliest.

Also, ask for the person required at these institutes as witness to complete these formalities. For instance, Nobby had a bank holder for which he was single holder. After his demise, when account had to be closed, bank officials expected Neil and his mother to be present while signing the closure documents.

Task #6: Transfer/ closure of assets

Please note that every institution has its own procedures for transfer/ liquidation of assets. And each of them would have different timelines as well. Hence, start your claim and transfer procedures at earliest.

Life Insurance — Many times, the claims are rejected/delayed due to incomplete paper work.

The first step is to fill the Claim Intimation Form (CIF) of the respective insurer and attach the mandatory as well as supporting documents. These documents may vary from insurer to insurer, but the customer care centre or the support team, or your insurance agent can give you a precise list.

All submitted documents must be in original and/or photocopies should attested by a gazetted officer, SEM, magistrate or a person of local standing, e.g. Sarpanch, Talathi, Tahsildar, or Police Sub-Inspector.

Bank accounts and deposits — In case your parent had appointed a nominee to his/her account or deposits, then claiming the money becomes a bit easy.

Or if it was a joint account with either or a survivor account type, then either of the holders can access that account.

But in case there is no nominee or joint holder then, the account needs to be closed by presenting the necessary documents.

(You may also like: Mutual Fund Nominee Registration — Everything You Need To Know )

Loans/Credits — In case the loan has a joint debtor, then the latter is responsible to settle the debt. But if he/she is unable to re-pay the loan, the creditor has the right to file a legal case to settle that amount.

And if your parent was a single borrower, the executor is responsible to get the loan settled. In absence of a Will, the court may appoint an administrator to deal with the debt.

To Sum-up…

The best practise would be to have proper estate planning in place. However, if your parent passes away intestate, then you need to follow proper steps in order to have easy settlement.

Keep all the important documents in a safe and secure place.

• Do not panic, go step-by-step with each institution for claim settlements or transfers.
• Understand the terms, documents, and visit-in-person requirement, if any, with each institution.
• Appoint a legal adviser or an advocate with proper knowledge who can guide you through this if necessary.
• Always keep your family in the loop.
• Appoint a nominee for all the movable and immovable properties.
• Most of all have an estate plan in place and write a Will.

Estate Planning is not only for the Rich and/or the Old. And, it is not an exercise to be looked after post retirement. Read this guide on All You Need To Know About Estate Planning.

You may also like to read the below articles:

5 Reasons why you should involve your family in financial matters
10 Points to consider while writing a will
How To Claim Unclaimed Money Of Your Mutual Funds

This post on “6 Tasks To Complete When Parents Pass Away” appeared first on “PersonalFN”