What documents are required for transmission of units in mutual fund investments?

TRANSMISSION OF UNITS IN MUTUAL FUND
TRANSMISSION OF UNITS IN MUTUAL FUND
Table of Contents

What is transmission of units in mutual fund?

When the units held by a deceased unit holder are transferred to the nominee or legal heirs of that investor, it is called transmission of units in mutual fund.

To whom units can be transferred in case of death of a unit holder:

The units are transferred to the registered nominee of the unit holder In case of death of that investor. If there is more than one registered nominee, units are transferred to the nominees as per the intent of the original deceased investor. 

If no registered nominee is there in the investment then the legal successor of the deceased investor can claim the units by producing required documents and proving successation certificate or court orders. In such a situation transmission of units in mutual fund can be done in favour of legal successors.

 If the investment is made jointly, the units are transferred to the surviving unit holders.

If Karta of HUF passed away and New Karta is to be appointed and units are transferred to the new Karta.

Transmission of units in mutual fund is processed in favour of the claimant on dissolution of HUF or when there are no surviving members after demise of Karta.

Different transmission request Forms:

To execute this process of transmission of units in mutual fund, certain documents are required to be completed by the claimant. They have to fill the different request form on a prescribed format. A brief detail of such forms are as below-

  1. Transmission Request Form T1 from surviving unit holder(s) requesting for Deletion of Name of Deceased 2nd and/or 3rd Holder.
  2. Transmission Request Form T2 for Transmission of Units to the surviving unit holder/s in case of death of first unit holder.
  3. Transmission Request Form T3 for Transmission of Units in favour of the Nominee(s) in case of death of sole or all unit holder
  4. Request Form T4 for change of Karta when the registered Karta is passed away.
  5. Transmission Request Form T5 for Transmission of Units to the Claimant after dissolving the HUF

What documents are required for transmission of units in mutual fund to the nominee in case death of Sole holder /all unit holders?

  1. Transmission request application on prescribed format (Form T3)
  2. Death Certificate of deceased Unit Holder(s) in original (or) Photocopy duly notarized or attested by gazetted officer/bank manager
  3. KYC compliance and FATCA of the Claimant and Guardian in case of minor nominee/ claimant.
  4. Bank details and signature of the claimant duly attested by Bank Manger along with their Name, Designation, Seal & Signature
  5. If the claimant is a minor, date of birth certificate and minor-guardian relationship document
  6. If the claimant is a major but mentally unsound person, Certificate of disability and proof of identity for Guardian
  7. Nomination signed by the claimant (not applicable when the claimant is a minor)

What documents are required for transmission of units in mutual fund to the legal heir in case if no nominee is registered on death of Sole holder /all unit holders?

  1. The legal heir should submit Form T3,
  2. Death Certificate of deceased Unit Holders in original or Photocopy duly attested by a Notary Public or a Gazetted Officer,
  3. KYC of the legal heir or Guardian (in case of legal heir being a minor / or of unsound mind),
  4. Cancelled cheque leaf with name and bank account number pre-printed thereon of the legal heir OR copy of bank statement / Photocopy of Bank Passbook of the legal heir with current entries (not older than 3 months) attested by a Notary Public or a Gazetted Officer or Bank Manager,
  5. Copy of Birth Certificate (in case the legal heir is a minor).
  6. Addionally, please submit Bank Attestation of Signature of the legal heir or Guardian (in case the legal heir is a minor) by the Bank Manager as per Annexure-I where Transmission value is up to ₹200,000 or by a Notary Public or a Judicial Magistrate First Class if the Transmission value is more than ₹200,000: (in the space provided in TRF – (Transmission Form Request).
  7. An indemnity bond to be executed by all the legal heirs in Annexure -II ,Individual affidavits by all the claimant legal heirs in Annexure -III 
  8. NOC by other legal heirs not claiming in Annexure IV

What documents are required in case of transmission of units to the second joint holder on death of first joint Holder?

The documents required for such transmission of units in mutual fund

  1. Duly filled transmission form with common application form (Form T2)
  2. Death Certificate of deceased Investor in original or Photocopy duly attested by a Notary Public or a Gazetted Officer
  3. Cancelled cheque leaf with name and bank account number pre-printed thereon of Second holder OR copy of bank statement / Photocopy of Bank Passbook of second holder with current entries attested by a Notary Public or a Gazetted Officer or Bank Manager

What documents are required in case of transmission of units to the remaining joint holder on death of second or third joint Holder?

The documents required for such transmission of units in mutual fund

  1. Form T1,
  2. Death Certificate of deceased Investor in original or Photocopy duly attested by a Notary Public or a Gazetted Officer.

What documents are required in case of transmission of units if Karta of HUF passed away and New Karta is to be appointed?

Following documents required for such transmission of units in mutual fund

  1. Form-T4
  2. Death Certificate of deceased Karta in original or Photocopy duly attested by a Notary Public or a Gazetted Officer
  3. KYC of the New Karta,
  4. Cancelled cheque leaf with name and bank account number pre-printed of new Karta OR copy of bank statement / Photocopy of Bank Passbook of new Karta with current entries (not older than 3 months) attested by a Notary Public or a Gazetted Officer or Bank Manager
  5. Bank’s letter certifying / attesting the signature and details of new Karta in the bank account of the HUF as per Annexure-I and any appropriate document evidencing relationship of the new Karta and the other coparceners with the deceased Karta
  6. An Indemnity Bond for change of Karta upon demise of Karta is to be submitted in Annexure -V to be signed by all the co-parceners including the Karta.

What documents are required in case of transmission of units if Karta of HUF passed away and HUF is dissolved?

Following documents are required for such transmission of units in mutual fund

  1. Form-T5
  2. Death Certificate of deceased Karta in original or Photocopy duly attested by a Notary Public or a Gazetted Officer, Copy of Birth Certificate of Claimant (if minor)
  3. KYC of the claimant or Guardian (if claimant is minor or of unsound mind),Cancelled cheque leaf with name and bank account number pre-printed of the claimant OR copy of bank statement / Photocopy of Bank Passbook of the claimant with current entries (not older than 3 months) attested by a Notary Public or a Gazetted Officer or Bank Manager
  4. Bank Attestation of Signature of the claimant or Guardian (in case the claimant is a minor) by the Bank Manager as per Annexure-I where Transmission value is up to ₹200,000 or by a Notary Public or a Judicial Magistrate First Class, if the Transmission value is more than ₹200,000: in the space provided in TRF – (Transmission Request Form)
  5. A Bond of Indemnity to be executed by claimant in Annexure -VI is to be submitted by the claimant on dissolution of HUF or when there are no surviving members after demise of Karta

How much time it will take to transfer the investment of the deceased investor to the surviving investors or nominee?

Subject to the documents submitted being in order and in compliance of the process, It generally takes about 11 working days from the date of receipt of relevant documents complete in all respects.

Some practical situation of transmission of units and their solutions  

Case 1

Investment in Mutual Fund was made by my husband. He was the first owner and I am the second owner. How will the investments of my husband who unfortunately passed away will be transferred to my name?

Solution

In such case, the process by which the investments are transferred to the second owner / second holder is called Transmission. Please fill the transmission form with common application form. Documents to be submitted in case of an Individual investor are – (A) Form T2 (B) Death Certificate of deceased Investor in original or Photocopy duly attested by a Notary Public or a Gazetted Officer (C) Cancelled cheque leaf with name and bank account number pre-printed thereon of Second holder OR copy of bank statement / Photocopy of Bank Passbook of second holder with current entries attested by a Notary Public or a Gazetted Officer or Bank Manager.

Case 2

For transmission process, what are the documents required to be submitted if Karta of HUF passed away and New Karta is to be appointed?

Solution

In such case, documents required to be submitted are – Form-T4, Death Certificate of deceased Karta in original or Photocopy duly attested by a Notary Public or a Gazetted Officer, KYC of the New Karta, Cancelled cheque leaf with name and bank account number pre-printed of new Karta OR copy of bank statement / Photocopy of Bank Passbook of new Karta with current entries (not older than 3 months) attested by a Notary Public or a Gazetted Officer or Bank Manager, Bank’s letter certifying / attesting the signature and details of new Karta in the bank account of the HUF as per Annexure-I and any appropriate document evidencing relationship of the new Karta and the other coparceners with the deceased Karta.

 Besides, An Indemnity Bond for change of Karta upon demise of Karta is to be submitted in Annexure -V to be signed by all the co-parceners including the Karta. 

Case 3

For transmission process, what are the documents required to be submitted if Karta of HUF passed away and HUF is dissolved?

Solution

In such case, documents required to be submitted are – Form-T5, Death Certificate of deceased Karta in original or Photocopy duly attested by a Notary Public or a Gazetted Officer, Copy of Birth Certificate of Claimant (if minor), KYC of the claimant or Guardian (if claimant is minor or of unsound mind),Cancelled cheque leaf with name and bank account number pre-printed of the claimant OR copy of bank statement / Photocopy of Bank Passbook of the claimant with current entries (not older than 3 months) attested by a Notary Public or a Gazetted Officer or Bank Manager.

 Addionally, please submit Bank Attestation of Signature of the claimant or Guardian (in case the claimant is a minor) by the Bank Manager as per Annexure-I where Transmission value is up to ₹200,000 or by a Notary Public or a Judicial Magistrate First Class, if the Transmission value is more than ₹200,000: in the space provided in TRF – (Transmission Request Form).

There needs to be submitted a few more papers to substantiate the claim of the claimant. A Bond of Indemnity to be executed by claimant in Annexure -VI is to be submitted by the claimant on dissolution of HUF or when there are no surviving members after demise of Karta. 

Case 4

Investment in Mutual Fund was made by me. I am the first owner, my wife is second owner and my son is third owner. Unfortunately my wife passed away. How will such investments be transferred from three owners to two owners?

Solution

In such case, the process by which the investments are transferred to the remaining owners is called Transmission. Please fill the transmission form with common application form. Documents to be submitted are – (A) Form T1, (B) Death Certificate of deceased Investor in original or Photocopy duly attested by a Notary Public or a Gazetted Officer.

Case 5

There are investments in Joint names. Unfortunately all the investors passed away. Name of nominee is also not registered. In such situation, how the legal heir will get investments transferred in his name?

Solution

In this case, the legal heir should submit Form T3, Death Certificate of deceased Unit Holders in original or Photocopy duly attested by a Notary Public or a Gazetted Officer, KYC of the legal heir or Guardian (in case of legal heir being a minor / or of unsound mind), Cancelled cheque leaf with name and bank account number pre-printed thereon of the legal heir OR copy of bank statement / Photocopy of Bank Passbook of the legal heir with current entries (not older than 3 months) attested by a Notary Public or a Gazetted Officer or Bank Manager, Copy of Birth Certificate (in case the legal heir is a minor).

Addionally, please submit Bank Attestation of Signature of the legal heir or Guardian (in case the legal heir is a minor) by the Bank Manager as per Annexure-I where Transmission value is up to ₹200,000 or by a Notary Public or a Judicial Magistrate First Class, if the Transmission value is more than ₹200,000: (in the space provided in TRF – (Transmission Form Request). There needs to be submitted a few more papers to substantiate the claim of legal heir. An indemnity bond to be executed by all the legal heirs in Annexure -II ,Individual affidavits by all the claimant legal heirs in Annexure -III  and NOC by other legal heirs not claiming in Annexure IV will also be required 

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