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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\u2019s 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.<\/p>\n
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Women often leave financial matters to their husbands. The latter, too, rarely maintain a repository of information about the family\u2019s finances. \u201cThe absence of a centralised inventory makes it difficult to identify bank accounts, investments, insurance policies and loans,\u201d says Vishal Dhawan, chief executive officer and founder, Plan Ahead Wealth Advisors.<\/p>\n
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Missing passwords, outdated know-your-customer (KYC) details, name mismatches and missing or incorrect nominations can further delay access.<\/p>\n
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Choose carefully whom to trust<\/p>\n
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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. \u201cMany women lose control of properties after their husband\u2019s death,\u201d says Renu Maheshwari, cofounder and principal adviser, Finscholarz Wealth Managers. The pressure to generate income sometimes leads to unsuitable purchases. \u201cInsurance agents or bank relationship managers may target women receiving insurance payouts and other proceeds, selling them low-return products that earn them high commissions,\u201d says Maheshwari.<\/p>\n
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Money for near-term expenses<\/p>\n
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The husband\u2019s 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. \u201cDo not sign relinquishment deeds, no-objection certificates or indemnities under pressure,\u201d says Bijal Ajinkya, partner, Khaitan & Co.<\/p>\n
\u00a0<\/p>\n
Reconstruct household finances<\/p>\n
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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.<\/p>\n
\u00a0<\/p>\n
\u201cContact the deceased\u2019s tax adviser, financial adviser, and insurance agent, as they may hold useful records,\u201d 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. \u201cBank statements, revealing systematic investment plan\u00a0 debits and insurance premium payments, can also be helpful,\u201d says Dhawan.<\/p>\n
\u00a0<\/p>\n
Claim and transfer assets<\/p>\n
\u00a0<\/p>\n
Next, obtain the death certificate, which is required for most claims. Follow the prescribed process for each asset. \u201cProcedures vary across banks, mutual funds and other institutions,\u201d says Maheshwari. The Association of Registered Investment Advisers (Aria) offers the Truly Cares resource, which outlines procedures for various assets, on its website. \u201cA registered investment adviser can also assist with the claiming of assets and setting up your portfolio ,\u201d says Maheshwari.<\/p>\n
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Check nomination status<\/p>\n
\u00a0<\/p>\n
If a nominee was appointed for an asset, access becomes easy. \u201cBanks, depositories and mutual funds generally release these assets on submission of the death certificate, the nominee\u2019s KYC documents and a claim form, without requiring court documents,\u201d says Ajinkya.<\/p>\n
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Nominees hold assets for legal heirs or beneficiaries named in a will.<\/p>\n
\u00a0<\/p>\n
\u201cIf there is no nominee, institutions typically require proof of entitlement, such as a legal heir or succession certificate,\u201d says Parag Bhide, partner, AQUILAW. Institutions may also seek indemnities, affidavits and no-objection letters from all legal heirs.<\/p>\n
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Key succession documents<\/p>\n
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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.<\/p>\n
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Revenue authorities such as tehsildars or collectors issue legal heir certificates under state rules. \u201cThey mainly establish family relationships for administrative purposes,\u201d says Bhide. These are useful for making a claim for pensions, government dues, utility and property-record transfers, and some insurance or employer benefits.<\/p>\n
\u00a0<\/p>\n
Probate is no longer mandatory in India. \u201cBut it remains useful where a will may be challenged,\u201d says Bhide.<\/p>\n
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If there is no will, a court may grant letters of administration to an administrator, usually a close family member. \u201cThese authorise the collection, management and distribution of the estate among legal heirs under the applicable succession law,\u201d says Ajinkya.<\/p>\n
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Understand inheritance laws<\/p>\n
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The Hindu Succession Act, 1956, covers Hindus, Buddhists, Jains and Sikhs. \u201cIf a man dies without a will, his separate property passes equally to his Class I heirs, including his widow, sons, daughters and mother,\u201d says Ajinkya.<\/p>\n
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Muslim personal law prescribes fixed inheritance shares. A widow generally receives one-eighth if there are children and one-fourth if there are none.<\/p>\n
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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.<\/p>\n
Choosing the right financial adviser\u00a0<\/p>\n
Select a Sebi-registered, fee-only investment adviserCheck qualifications, experience and certificationsStart with Sebi\u2019s registered advisersFilter by city, identify advisers and meet themUnderstand their feesCheck whether they can help with asset transmission, creating regular income stream \u00a0<\/p>\n
\u00a0 <\/p>\n","protected":false},"excerpt":{"rendered":"\u00a0 Her experience reflects a wider issue. For many women, the moment they must take charge of money…\n","protected":false},"author":2,"featured_media":813777,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,267120,267127,43181,267122,4176,267116,267129,166709,267114,71298,267123,267117,267125,83494,267121,267126,267119,4174,4175,239735,83495,56,54,55,267115,267124,267118,267128],"class_list":["post-813776","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-death-claim-settlement","tag-emergency-fund-for-widows","tag-estate-planning-india","tag-family-financial-security","tag-finance","tag-finances-after-spouse-death","tag-financial-checklist-after-spouse-death","tag-financial-independence-for-women","tag-financial-planning-after-husbands-death","tag-hindu-succession-act","tag-husbands-debts-after-death","tag-inheritance-rights-of-widow-in-india","tag-joint-loans-after-spouse-death","tag-legal-heir-certificate","tag-life-insurance-claim","tag-married-womens-property-act","tag-nominee-vs-legal-heir","tag-personal-finance","tag-personalfinance","tag-sebi-registered-investment-adviser","tag-succession-certificate","tag-uk","tag-united-kingdom","tag-unitedkingdom","tag-widow-financial-planning","tag-widow-liability-for-loans","tag-widow-property-rights","tag-will-and-nomination"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/813776","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=813776"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/813776\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/813777"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=813776"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=813776"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=813776"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}