When Curtains Fall On Kindred

Steps Families Should Take For Financial Security.

- Suyash Desai

Financial education teaches financial discipline. But, in case of a tragic situation like that of a family member’s demise, this value takes a backseat. Be it due to emotional stress or shock, financial discipline takes a hit during such situations. Without restoring financial discipline, the seamlessness and continuity are disturbed, thereby, taking a toll on the end results.

Outlook Money decided to take a stock of this and has charted out certain important financial decisions to undertake in case of such unforeseen situation.

Death Certificate

The first and the most important thing to take into account after the demise of a family member is getting hold of the death certificate. Death certificates are issued by the government, mentioning the date, time and the reason for death. The government can issue up to 10 copies to the kin with different serial numbers. It is important to get hold of all the 10 copies, as this would be used in each and every activity—be it financial or otherwise. According to Rahul Jain, Personal Wealth Advisory, Edelweiss, “A death certificate enables the family members to make and collect life insurance claims. It also helps in the transfer of equity shares or units of mutual funds from the first holder to the second or the nominee and it also ensures the continuance of pension to the spouse of the deceased.”

Assets And Liabilities

It is important that the kin makes a list of assets and liabilities. Assets can be in the form of bank accounts, shares or mutual funds, real estate and insurance. Liabilities could be a credit card, tax, loans, equated monthly instalments or bills. Once listed, it is important to transfer them to the kin’s name and clear the liabilities as early as possible.