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Section V – Advance preparation for disability or death of main decision maker<\/p>\n
[\/vc_column_text][vc_column_text]A financial database must be built to ensure that all the assets are inventoried, and the title transfer process is kicked off. Usually, the families start the rebuilding of financial data base after the loss of a loved one.<\/p>\n
It really helps if there was already an Inventory of Assets available and if measures were taken in advance to cope with any eventuality.<\/p>\n
The following templates can assist in the preparation of the inventory of assets:<\/p>\n
Financial Assets Inventory Template<\/strong><\/p>\n What my Family should know.xls<\/a><\/strong><\/span> (this is a downloadable google sheet file)[\/vc_column_text][vc_column_text]<\/p>\n [\/vc_column_text][vc_toggle title=”A. Mutual Funds:” style=”round_outline”]Nomination enables an individual unitholder to nominate a person, who can claim the Units held by the unitholder or the redemption proceeds thereof in the event of death the unit holder. If the Units are held jointly by more than one person, all joint unit holders are required to together nominate a person in whom all the rights in the units would vest in the event of death of all the joint unit holders.<\/p>\n Mutual funds are required to provide an option to the individual unitholders to nominate in the specified manner. All the information and process for Nominations for Mutual Funds is available here<\/span><\/strong><\/span><\/a>.<\/p>\n Nominations can be made at any time – at the time of purchase or later. Nominations can be changed whenever you wish and as many times as you wish.<\/p>\n <\/p>\n Last updated on<\/strong> 21 August, 2021<\/p>\n Legal Disclaimer – Click here<\/a><\/span><\/span><\/strong><\/p>\n [\/vc_toggle][vc_toggle title=”B. Bank Accounts & Safe Deposit Lockers:” style=”round_outline”]<\/p>\n Last updated on<\/strong> 21 August, 2021<\/p>\n Legal Disclaimer – Click here<\/a><\/span><\/span><\/strong>[\/vc_toggle][vc_toggle title=”C. Demat accounts:” style=”round_outline”]A\u00a0<\/strong>nomination is very critical to avoid cumbersome legal and documentation process to transmit the holdings to the beneficiaries, more so in singly owned account. Each Depository Participant has a form that can be filled up and submitted to the DP. There can be up to three nominees. The form of HDFC Securities is here<\/span><\/a><\/strong><\/span>.<\/p>\n Demat account opened online: <\/strong>Nominations to Demat accounts cannot currently (as on August 14 2021) be made online. Make sure to submit a physical form with inked signature. The offline process to add a nominee to a Zerodha account is\u00a0here<\/span><\/a><\/strong>.<\/p>\n SEBI has issued a circular<\/a><\/strong><\/span> that has made it compulsory for all trading and demat accounts opened after October 1, 2021 to either have a nomination or a declaration to be obtained from the Investor that he does not opt for nomination. The same circular also allows online nomination and Declaration form using e-Sign facility. <\/p>\n Last updated on<\/strong> 21 August, 2021<\/p>\n Legal Disclaimer – Click here<\/a><\/span><\/span><\/strong><\/p>\n <\/p>\n [\/vc_toggle][vc_toggle title=”D. Post Office Schemes” style=”round_outline”]Nominations are in the account opening forms itself. If the nomination is to be changed thereafter then a\u00a0Form 10<\/span><\/a><\/strong><\/span>\u00a0<\/strong><\/span>reflecting the changes needs to be submitted. There is a small charge for revisions in nominations. There is no online facility for making or revising nominations.<\/p>\n <\/p>\n Last updated on<\/strong> 21 August, 2021<\/p>\n Legal Disclaimer – Click here<\/a><\/span><\/span><\/strong><\/p>\n [\/vc_toggle][vc_toggle title=”E: RBI Bonds” style=”round_outline”]A nominee can be appointed by the purchaser of the RBI Bond at the time of purchase or thereafter. While online facility of purchase of RBI Bonds is available the changes in the nomination if required will need to be offline. A sample of the form is here<\/a><\/strong><\/span>.<\/p>\n <\/p>\n Last updated on<\/strong> 21 August, 2021<\/p>\n Legal Disclaimer – Click here<\/a><\/span><\/span><\/strong><\/p>\n [\/vc_toggle][vc_toggle title=”F. Insurance Policies” style=”round_outline”]Nomination should always be done in a life insurance policy. Most insurance companies insist on nomination at the time of purchase of the policy.<\/p>\n <\/p>\n Last updated on<\/strong> 21 August, 2021<\/p>\n Legal Disclaimer – Click here<\/a><\/span><\/span><\/strong><\/p>\n [\/vc_toggle][vc_toggle title=”G. Employees Provident Fund:” style=”round_outline”]EPF balance could form a substantial portion of the estate and all care should be taken to state appropriate nominee.<\/p>\n <\/p>\n Last updated on<\/strong> 21 August, 2021<\/p>\n Legal Disclaimer – Click here<\/a><\/span><\/span><\/strong><\/p>\n [\/vc_toggle][vc_toggle title=”H. National Pension Scheme (NPS) :” style=”round_outline”]Pension Fund Regulator PFRDA has allowed e-sign based online facility for change of nomination in NPS. The existing subscribers of NPS or National Pension Scheme who want to change their nomination have to submit an S2 form<\/span><\/strong><\/span><\/a>\u00a0<\/span>request for change of their master details physically to the associated nodal offices or points of presence for updating.<\/p>\n <\/p>\n Last updated on<\/strong> 21 August, 2021<\/p>\n Legal Disclaimer – Click here<\/a><\/span><\/span><\/strong><\/p>\n [\/vc_toggle][vc_toggle title=”I. Immovable Property” style=”round_outline”]The inheritance of Immovable property will happen as per the Will (post probate) or as per the Succession Act in force. There is no common process of nomination as such.<\/p>\n However, in case the apartment is located in a building managed by a\u00a0 Cooperative Society then the Title of the property (besides the Sale Deed) will also include the Shares in the Cooperative Society. These shares can have a nomination.<\/p>\n Immovable property is governed by State Law. Hence the legal standing of a nomination and process will have to be ascertained state wise.<\/p>\n In Maharashtra the form for nomination is given here<\/a><\/strong><\/span>.<\/p>\n <\/p>\n Last updated on<\/strong> 21 August, 2021<\/p>\n Legal Disclaimer – Click here<\/a><\/span><\/span><\/strong><\/p>\n [\/vc_toggle][vc_column_text]<\/p>\n [\/vc_column_text][vc_column_text]The sudden serious illness of a loved one requiring artificial life maintenance systems means that the loved\u00a0ones may need to make life or death decisions for the ill. Normally nobody is prepared for taking such\u00a0decisions.<\/p>\n Consider this real-life example faced by an ARIA member. The member\u2019s 83-year-old father was admitted to a hospital after a serious stroke. His condition was critical, and doctors asked him to provide consent for use of a ventilator (an artificial life maintenance device), if required. The consent to use was irrevocable. It meant that if the member consented to the use of a ventilator and his father was put on the ventilator, then till the demise of the patient or his getting better the ventilator would not be taken off even if the member wanted it later. Naturally if he did not give consent, his father would not be put on the ventilator and the consequences of that decision would follow. It was literally a life and death decision for which he was just not ready. Neither he nor his sibling or his other close family members knew about his father\u2019s own view on the subject. It would have been a very crucial input that would have made the tough decision a tad easier. In any case after an excruciating one hour spent on talking it over with his close family the member was able to take a decision and convey it to the doctors. In his case fortunately his father\u2019s condition improved enough so that the ventilator was not needed.<\/p>\n This shows the need for families to have such discussions among themselves. That decision is not about legally binding wishes (a Living will or Advance Health Directive or a Do not resuscitate (DNR) order). This is more about letting your loved ones know what your wishes are so that, if (God forbid) they ever must take the decision, they are not missing the critical input that he did not have. These wishes are not legally binding. They are just a guidepost for the loved ones. Given that artificial life maintenance treatments are so expensive, most hospitals in India will not put the patient on those devices unless they have written consent from the patient’s close relatives.<\/p>\n If you so desire, you can also document your views in this non legally binding Letter of Instructions regarding health treatment. Remember it is the discussion and letting your loved ones know your views that is important. The documentation is just for their comfort if (God forbid) they have to ever take that decision. Letter of instructions regarding my health treatment.doc<\/a><\/strong><\/span><\/span>[\/vc_column_text][vc_column_text]<\/p>\n [\/vc_column_text][vc_column_text]Consider this example of Sunil who went through a rather harrowing time.\u00a0 His 83-year-old father was hospitalised after a massive stroke. While prompt medical attention ensured his survival, his bodily functions were severely impacted. His speech, cognition, communication was severely impacted. He was just able to recognise Sunil, his elder sister Shristi, their kids and some close friends.<\/p>\n Sunil\u2019s experience holds lessons for all of us. Sunil\u2019s father was a widower and financially independent. Sunil and Shristi were the only heirs. His assets were held in his own personal name, but he had no\u00adm\u00ad\u00adinations in place. Even his ph\u00ado\u00adn\u00ade number and email id were registered with banks and the de\u00adp\u00ado\u00adsitory participant. He had debit cards for all his bank acco\u00adu\u00adn\u00adts. He had also made his Will<\/strong> <\/a><\/span><\/span>and registered it. In other words, he was well prepared for any eventuality.<\/p>\n Sunil\u2019s father needed continuous care even after discharge. So, Sunil and his sister had to access his bank accounts and Demat accounts to take care of costs. \u201cThough we were nominees, we could not access the accounts,\u201d says Sunil, because the account holder was alive. All the Estate Planning measurements kick in only at the demise of account holders. The option available to them was:<\/p>\n Approach the high court to be appointed as guardians. But the process to be appointed as Guardians it was a time-consuming and expensive process.<\/p>\n Luckily since his father had not lost all his faculties, easier avenues were available. First, Sunil took charge of the phone and email id and looked at the practical ay of handling such situation.<\/p>\n His father had three bank accounts.<\/p>\n In all Sunil and Shrishti were able to access their father\u2019s financial resources to use in his treatment.<\/p>\n Unfortunately, incapacitation of the kind experienced by Sunil\u2019s father has become more common than ever. Estate planning will need to include not only after demise, but also the intermediate stage of disability and emergency. The tradeoff for any such solution is that the trusted person may betray the trust and misuse the funds. Whether to take the risk or not is a personal decision that each investor has to take.<\/p>\n When you decide to take preventive measures for such situations, here are some things that you could do to prepare for disability :<\/p>\n [\/vc_column_text][vc_column_text]<\/p>\nV (b): Nominations Process for assets<\/h6>\n<\/div>\n
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\nThe circular also requires all existing trading and Demat accounts to also provide choice of nomination or declaration (of no nomination) latest by March 31, 2022 which can also be done online through e-sign. In effect online nomination will be in place soon latest by October 1, 2021 including for existing demat accounts.<\/p>\n\n
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Section V (c) – Non-Legally binding documentation for critical care situations<\/h6>\n<\/div>\n
Section V (d): How trusted persons can access your financial assets in case of incapacitation<\/h6>\n<\/div>\n
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\nDownloadable documents:
\n1) format of conditional POA.doc<\/span><\/a>
\n<\/strong><\/span>2). format of unconditional POA.doc<\/span><\/a><\/strong><\/span><\/li>\n\n\n
\n \nCheck List<\/th>\n Yes\/No<\/th>\n<\/tr>\n<\/thead>\n \n Discussion and Decision on use of artificial life maintenance system<\/strong><\/td>\n \u00a0<\/strong><\/td>\n<\/tr>\n \n Register your email id and mobile in all bank accounts, Demat accounts, investment accounts.<\/strong><\/td>\n <\/td>\n<\/tr>\n \n Signed cheques\/ Demat slips in favor of trusted person in safe custody.<\/strong><\/td>\n <\/td>\n<\/tr>\n \n Give access to mobile for a trusted person including sharing unlock pattern, unlock codes and imputing their fingerprints.<\/strong><\/td>\n <\/td>\n<\/tr>\n \n Using password access vaults like LastPass to share pass codes to the all-important email ids.<\/strong><\/td>\n <\/td>\n<\/tr>\n \n Stamped and registered POA to deal with immovable property, bank accounts, & Demat accounts<\/strong><\/td>\n <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n