I recently lost an elder brother and realised that not all of us are well equipped to handle the documentation that is triggered off on a death.
Here are the steps that I had to take. I got the claim from the life insurance company like a breeze – just one visit where I gave them the photocopies (an officer verified the originals) and in a week’s time the claim was paid. It was a pain in Mutual funds – I had to make a declaration, an affidavit, attestation of the death certificate by a notary, in spite of the fact that a nominee was mentioned in the original application itself. The credit card issuing bank was a little hilarious – they wanted the applicant’s signature to cancel the card.
Unfortunately my brother had bought some RBI Bonds through a foreign bank – this bank was most unhelpful. He once had a salary account with this bank and hence the relationship. After some talking, pleading, etc. they hung up and said “this account is not serviced by the branch” – my aunt is still struggling. So before you choose your banker, broker, agent, think hard. Now let me tell you some of the steps that I thought are important:
Locate important papers. Aside from any insurance policies, remember to think about safe-deposit boxes, business agreements, bank pass books, and securities certificates; real estate deeds; wills; recent copies of income tax return forms, Form 16 and other records of earning; PAN card; marriage and birth certificates; automobile registration etc.
Call the deceased’s lawyer to help with the will, if there is one. When a loved one dies, you should seek legal advice on such matters as re-recording property deeds and the disposition of shares, bonds, and savings. Also, the disbursement of the insured’s business and estate assets, and the drawing up of a will for the widow or widower, will require immediate attention.
Check on the spouses’ medical and life insurance requirements – in case of the death of an employee all group insurance benefits may die along with the person. In such a case it may be of paramount importance that the remaining spouse should immediately be adequately insured – for medical and life. Remember insurance is not because we may die, but because our dependants will live.
Contact your CA for help with taxes. You may need to pay advance tax, as well as income taxes for the previous year of the deceased’s life. The tax officer may condone some delay in filing the return but may not condone non filing.
Notify the post office of the death. Also, go through the deceased’s mail and cancel subscriptions, phone, and utility services, passports, driving license, return company ID cards, club memberships, etc.
Gather unpaid bills. Many installment loans, service contracts, and credit card accounts are covered by some term life insurance cover and hence may not be payable. If the bills are not covered, consult your financial advisor about how to obtain a discharge letter when paying it off in full.
Make changes to, or cancel, ownership registrations- These registrations include cars, securities, real estate, bank accounts, credit cards, e-broking accounts, MFs, bank lockers, and health and/or life insurance policies.
Most importantly if you are doing this for somebody else, prepare the family for trips to the lawyer, banks, and the like. Keeping them prepared for such an ordeal will help in making the end customer feel less frustrated about the whole process in a sad situation. Here I am making a simple assumption – that all papers are intact, the nominee has been named properly, PAN CARD, etc. In case you do not have these minimum documents, first get them organised!
PV Subramanyam
writes at www.subramoney.com and has authored the best seller ‘Retire
Rich - Invest C40 a day’