Know the Legal Procedure to Claim Money From a Deceased Person's Account With Sakchi Jain

In the event of a family member's passing, one of the crucial tasks is to manage their financial affairs, specifically claiming money from their bank accounts. CA Sakchi Jain, a well-known finance influencer, points out the important steps for 'how to claim money from a deceased person's account after their death'. Highlighting this process involves understanding the role of the nominee, the rights of the legal grantee, and dealing with the banking institution of the deceased account holder. Before knowing about all these, let's take a look at the procedure after the death of any account holder. 

Procedure After Death: 

Once a person has died, their bank accounts are usually canceled by a next of relatives, or executor of the will. If your loved one has no will, then ownership of their bank account is transferred to an estate administrator or next of relatives. It's important to note that before this process takes place, any outstanding personal loan or credit card debts held by the deceased will be paid by their remaining savings.

Nominee or Without Nominee: 

When a bank account has a registered nominee, the transfer process after the account holder's death is relatively easy and simple. The nominee simply needs to provide documents and the deceased person's death certificate to claim the amount. The bank then processes the transfer based on the nomination.

If there is no nominee, the process is much more difficult. To withdraw money, the legal heirs must first be identified. This process requires a legal heir certificate or series certificate. The bank might also request additional legal documents to ensure the funds are transferred to the legal person. This process is liable to be time-consuming and involves more legal formalities.

If the amount claimed exceeds Rs 5 lakh, you will need some additional documents:

1. Stamped Letter of insurance (COS 540) from the claimant(s) plus one guarantor good for the amount.
2. Details of guarantors for the collection of the opinion Report on Sureties.
3. Declaration in the revised claim form regarding the legal heirs of the deceased, sworn as an affidavit before the Judicial Magistrate or Notary Public.

If there is a conflict between legal heirs, you will additionally need a succession certificate.

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Have a Will:

If you have a will in place, your heirs may not necessarily avoid probate. But at the very least, you will set guidelines for who gets your benefits. The probate process can be lengthy, and your heirs may be required to hire costly probate attorneys depending on where they live.