Her experience reflects a wider issue. For many women, the moment they must take charge of money arrives with little warning. According to Equirus Wealth’s latest study, Shakti & Capital: Next-Generation Women and the Future of Indian Family Wealth, 40 per cent of the women surveyed assumed responsibility for family finances after bereavement, separation, capital loss or inheritance.
Women often leave financial matters to their husbands. The latter, too, rarely maintain a repository of information about the family’s finances. “The absence of a centralised inventory makes it difficult to identify bank accounts, investments, insurance policies and loans,” says Vishal Dhawan, chief executive officer and founder, Plan Ahead Wealth Advisors.
Missing passwords, outdated know-your-customer (KYC) details, name mismatches and missing or incorrect nominations can further delay access.
Choose carefully whom to trust
In this unfamiliar territory, a trusted relative may become the person a woman turns to. Trust, however, does not ensure financial expertise. Dependence can also leave her open to exploitation. “Many women lose control of properties after their husband’s death,” says Renu Maheshwari, cofounder and principal adviser, Finscholarz Wealth Managers. The pressure to generate income sometimes leads to unsuitable purchases. “Insurance agents or bank relationship managers may target women receiving insurance payouts and other proceeds, selling them low-return products that earn them high commissions,” says Maheshwari.
Money for near-term expenses
The husband’s accounts generally remain frozen until the required documents are submitted. An account in her sole name can help cover living costs while KYC issues are resolved and insurance payouts arrive. Avoid signing documents in haste. “Do not sign relinquishment deeds, no-objection certificates or indemnities under pressure,” says Bijal Ajinkya, partner, Khaitan & Co.
Reconstruct household finances
Begin by preparing an inventory of assets and liabilities: Bank accounts, fixed deposits, demat accounts, mutual fund folios, provident funds, property and loans. Check for employer-provided and credit card insurance, and other policies the husband may have purchased.
“Contact the deceased’s tax adviser, financial adviser, and insurance agent, as they may hold useful records,” says Dhawan. Review his email and search the cupboards where he kept financial documents. Statements from National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) can provide a consolidated view of investments. “Bank statements, revealing systematic investment plan debits and insurance premium payments, can also be helpful,” says Dhawan.
Claim and transfer assets
Next, obtain the death certificate, which is required for most claims. Follow the prescribed process for each asset. “Procedures vary across banks, mutual funds and other institutions,” says Maheshwari. The Association of Registered Investment Advisers (Aria) offers the Truly Cares resource, which outlines procedures for various assets, on its website. “A registered investment adviser can also assist with the claiming of assets and setting up your portfolio ,” says Maheshwari.
Check nomination status
If a nominee was appointed for an asset, access becomes easy. “Banks, depositories and mutual funds generally release these assets on submission of the death certificate, the nominee’s KYC documents and a claim form, without requiring court documents,” says Ajinkya.
Nominees hold assets for legal heirs or beneficiaries named in a will.
“If there is no nominee, institutions typically require proof of entitlement, such as a legal heir or succession certificate,” says Parag Bhide, partner, AQUILAW. Institutions may also seek indemnities, affidavits and no-objection letters from all legal heirs.
Key succession documents
Civil courts issue succession certificates under the Indian Succession Act, 1925. These allow collection of bank deposits, shares, debentures and money owed to the deceased. They are typically sought when there is no nominee or will, or an institution insists on one.
Revenue authorities such as tehsildars or collectors issue legal heir certificates under state rules. “They mainly establish family relationships for administrative purposes,” says Bhide. These are useful for making a claim for pensions, government dues, utility and property-record transfers, and some insurance or employer benefits.
Probate is no longer mandatory in India. “But it remains useful where a will may be challenged,” says Bhide.
If there is no will, a court may grant letters of administration to an administrator, usually a close family member. “These authorise the collection, management and distribution of the estate among legal heirs under the applicable succession law,” says Ajinkya.
Understand inheritance laws
The Hindu Succession Act, 1956, covers Hindus, Buddhists, Jains and Sikhs. “If a man dies without a will, his separate property passes equally to his Class I heirs, including his widow, sons, daughters and mother,” says Ajinkya.
Muslim personal law prescribes fixed inheritance shares. A widow generally receives one-eighth if there are children and one-fourth if there are none.
The Indian Succession Act, 1925, governs Christians and Parsis. A Christian widow receives one-third where there are lineal descendants. Bhide recommends seeking independent advice where ownership is disputed.
Choosing the right financial adviser
Select a Sebi-registered, fee-only investment adviserCheck qualifications, experience and certificationsStart with Sebi’s registered advisersFilter by city, identify advisers and meet themUnderstand their feesCheck whether they can help with asset transmission, creating regular income stream