Inheritance guide: What heirs must know about claiming money and assets

From bank deposits and property to insurance and investments, here's how heirs can navigate legal documents and formalities to claim inherited assets without hassle.

When a family member passes away, the question of how to access their financial assets often arises. From property and deposits to insurance and investments, each requires a different process. Understanding these steps early can save heirs from unnecessary legal hurdles. 

Step 1: Start with the basic documents

The death certificate is the cornerstone of all claims. Once obtained from the local municipal authority, the next step is to check if the deceased has left behind a will. 

If there is a will, the person named as executor must get a probate from a court to validate it. 

In the absence of a will, heirs will have to apply for a succession certificate (for movable assets) or a letter of administration (for property).

 

These documents legally establish who is entitled to claim the deceased’s assets.

 

Step 2: Accessing money in banks, FDs and PPF

If the deceased had a joint account or had appointed a nominee, the claim process is relatively simple. The nominee needs to submit the death certificate, identity proof and a claim form to the bank.

 

If there is no nominee, the bank will release the funds only after verifying the heir’s rights through a legal heir certificate or succession certificate.

 

For Public Provident Fund (PPF) accounts or post office savings, the nominee can approach the institution with similar documents.  ALSO READ | GCCs in India drive 10.4 mn jobs, 30% higher pay, 2,000+ legal obligations

 

Step 3: Dealing with bank lockers

In the case of a bank locker, the bank will require the death certificate, KYC of the claimant and documents proving heirship. Where a nominee or joint holder exists, access is granted quickly. If not, the bank follows a formal process to open the locker in the presence of witnesses, ensuring transparency.

 

Step 4: Transferring inherited property

For real estate, ownership can only be transferred once legal formalities are complete. 

When a will exists, the executor must secure probate and then apply for mutation in land or municipal records.

 

Without a will, property transfer follows personal succession laws, such as the Hindu Succession Act or Indian Succession Act, and records must be updated in the heir’s name.

 

Step 5: Claiming mutual funds, shares and insurance

For mutual funds, shares and demat holdings, the nominee or legal heir should submit the death certificate and transmission forms to the fund house or depository participant. If the shares remain unclaimed for over seven years, they are transferred to the Investor Education and Protection Fund (IEPF), from which heirs can later recover them.

 

In the case of life insurance, claims are paid directly to the nominee. If no nominee is listed, insurers seek proof of relationship, succession documents and identity proofs from the heirs before releasing the payout.

 

Keep nominations updated

While inheritance laws provide clarity, the process can be lengthy without the right paperwork. Experts advise individuals to regularly update nominations and draft a valid will to ensure their assets reach the intended beneficiaries without delay or dispute.