What happens to my investments when I die

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by The Mukul Agrawal, Jul 21, 2020.

  1. The Mukul Agrawal

    The Mukul Agrawal New Member

    Jul 21, 2020
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    ‘What happens to your investment when the investor dies?’
    Here the main point which you need to understand is that you can invest anywhere whether it is stock market, mutual fund or many other bonds and schemes. I will try to make you understand every aspect of investment in this video so that you will have complete information about your investment and you can get its document ready.

    A data also says that in India there are many investors who invest huge but due to lack of proper documentation their wife and children don’t get the right benefit of their investment and they keep on visiting one office to another. So now don’t skip any part, watch the complete video and keep noting important points.

    Do you know there are two things, one is legal heir and the other is Nominee.

    Is legal heir and nominee the same? Will your nominee get money on your death? Do you think your nominee is the person who will legally get all the money from your life insurance policy and mutual fund investment?

    Many of us are not really aware of this legal twist. We assume many things, which are mostly what we hear by the people, but are not correct from the legal point of view.

    Who are we earning for? Who are we investing for? If we want to do something with us, who do we want to leave all our money to? This can be your children, your spouse, parents, siblings etc.

    So you think you will nominate person X in your insurance policy, and when you are dead and gone, all the money goes to person X and he becomes the sole owner? It does not work that way.

    Let’s see how this actually works ?

    By law, a nominee is a trustee, not a property owner. In other words, a nominee is only a caretaker of your property.
    Nominee will only hold your money/property as trustee and will be legally bound to transfer it to the legal heirs.

    For most investments the legal heir is entitled to the property of the deceased.

    A legal heir will be the one who is mentioned in the will. However, if a will is not available or not written, then the legal heirs of the asset are decided according to the succession laws.

    For example, if a person makes a will during his lifetime, he mentions his wife and children as the legal heirs, then after his death, his wife and children are the legal owners of his property. It is the ultimate source of truth and replaces the succession law. Nominee can also be one of the legal heirs.
    If the nominee is a minor, appoint a person who is a major as an appointee giving his full name, age, address and relationship to the nominee.