Managing Finances Before & After Death: Take Charge of Responsibilities
(Last Updated On: August 28, 2019)
Prevention is better than cure – we all have heard of it but do we really follow the same?
We generally witness people facing difficulty in deciding what to do next and how to manage the charge of different things after facing a loss of person in family. Although discussing things with your family in advance like finances, property etc saves a lot of foreseen troubles, but majority of us still ignore the importance of it…in the world so uncertain!!
Understated are some guidance on this issue.
The major element of concern being finance, we should be aware that financial documents are mandatorily needed to mention a nominee and the amount can duly be transferred to nominee in case of a deceased principal holder. Here is a short list of financially important accounts which compulsorily includes name of nominee when entered into:
- Bank account
- PPF account
- Mutual Fund
- Medical policy etc
Items like property are transferred based on will and if there is no will underwritten the same goes in the hand of legal heirs. For making a valid claim as legal heirs of deceased, normally one should be in possession of succession certificate issued by civil court to prove the legal admissibility if the legal heirs.
Shares are the most traded securities nowadays, representing a significant amount of investments made. Legal transfer of share in case of death is known as transmission of shares. Transmission of shares occurs in order of priority i.e. if there are joint holders of share get registered in name of joint holder, otherwise the same are legally transmitted to legal heirs. Documents required for the purpose death certificate, succession certificate etc.
Pending income tax returns of Individual or in case of proprietorship are filed by the legal heirs. Complying with the same can help you in times of need through faster refunds and avoiding penalties.
One of the toughest task is to ensure a regular source of income. But to our greatest relief ,in our country dependents of Government servant and Member of Armed forces are awarded with compassionate employment,provided other conditions are satisfied. Compassionate grounds include death while in service, retirement on medical grounds mentioned specifically for the purpose and death during service, killing in action, medical grounds respectively.
We live in the era of emerging technology and it contains a lot of sensitive information, which if goes in wrong hands can cause us a great damage both in terms of money and reputation. We can stop its misuse after person demise. Use of E- platforms like
- Uber etc
Can be restrained by requesting a change in password or transfer of the amount (if any) in case of a deceased person.
Social media websites like:
- Twitter etc
Have become inevitable part of our lives resulting in inevitable consequences. We all understand the urge of greater vigilance in the aforesaid area. These social platforms serve purpose of easing out things and they keep doing it even after you. Yes, you guessed it right provisions are already embedded in their policies to give control in the right hands, during situation, we are considering.
“True, that some losses in life cannot be restored but a little knowledge can save us from undue hardships.”