With the second wave disrupting the life of people, the world witnesses more families than usual mourning over the loss of their near and dear ones. Indeed, the COVID-19 pandemic has caused severe pain to individuals in several ways. While being grief-stricken, one also has to handle several responsibilities of added financial tasks with respect to the passing away of their loved ones. This article would help you in these difficult times and provide you with financial checklist and a financial plan that you can adopt to resolve any financial implications that may pop up due to such tragedies:
- Death certificate
One needs to report and register about the unfortunate incident to the concerned municipal authority by applying for a death certificate of the demised individual within 21 days. It usually takes around 10 working days for the death certificate to further get issued. Ensure that you carefully jot down the details accurately of the deceased. A good tip would be asking for several copies of the death certificate from the authorities.
- Is there a will?
It’s important to check if the deceased has enumerated a will. If there is one, it would be easier to allocate the assets of the deceased among different members of the family. Also, if the deceased had nominated an heir, it would help getting a death certificate and other identity proofs as it will fasten the process of shifting assets to the legal heir or nominee.
- Tracking different types of investments
Along with other documents, one needs to also take care of the deceased’s investments You can begin by drafting a list that lists their mutual fund investments, insurance ULIPs (unit-linked insurance plan), bank fixed deposits (FD), fixed-income securities, stocks, etc. You must also contact the underlying financial institutions to inform them about the unfortunate incident. Also, if need arise, you can also pause their SIPs (systematic investment plan) or SWP (systematic withdrawal plan).
- Altering bank documents
Next you may want to account all the bank accounts of the deceased. Had the deceased appointed a nominee or perhaps opened a joint account (along with the survivorship clause), the transfer of asset funds and ownership and funds would be comparatively easier.
- Handle their liabilities
Along with the assets, one also needs to account for the deceased’s liabilities. You must make sure that all bills of the deceased including and not limited to credit cards, car insurance, loan, car insurance, utility bills such as cable, electricity, water, etc are paid timely if you do not wish to pay any penalties. However, you must be aware that a legal heir or a nominee is liable to pay for the debt on behalf of the deceased only to an extent of their share in the inheritance, provided that it isn’t already settled by real estate.
The death of a near and dear one can be emotionally and financially taxing that attracts certain complicated financial obligations. Though we might not be able to provide emotional support, we hope that the above financial check list helps you manage the situation financially in a better way. Stay safe and happy investing!