Avoid inheritance hassles for your heirs by appointing a nominee

Avoid inheritance hassles for heirs, appoint a nominee

Mutual fund unit holders have until September 30, 2023, to either appoint a nominee or opt out. The deadline – it has been extended to December 31 for demat account holders – is crucial as nomination enables smooth transfer of assets and benefits in the case of the unit holder’s untimely demise.

Nomination essentially allows a person to claim units or redemption proceeds after the unit holder’s demise.

Consequences of non-compliance

Failure to nominate a beneficiary for your mutual fund (MF) investments can lead to the freezing of some transactions. “In case investors fail to register a nominee in a