No escaping death or paper work

By PV Subramanyam

The recent loss of an elder brother put me through a dual trauma.

Emotional loss aside, a truckload of paper work that a death triggers was also thrust on me.

How much can you handle?
Let me give you a small peek into what I went through to put his monies in order.

The life insurance claim was easy enough, but only because I had all documents handy. I submitted the photocopies (originals verified by an officer) and the claim was pain in a week. With mutual funds, I had to make a declaration, an affidavit and attestation of the death certificate by a notary, even though a nominee was mentioned in the original application itself!

The credit card issuing bank was hilarious: they wanted the applicant’s signature to cancel the card!

My brother had also bought some RBI bonds through a foreign bank (he once had a salary account there). Even after a lot of cajoling and requesting, the best we could get was, “This account is not serviced by the branch.”

Be proactive
Let me assure you this is not an easy situation. You may not be able to find anyone to do your work for you. Also, think twice before choosing your banker, broker and agent!

Here are some things you can do to be forearmed.

Keep important papers handy

Documents are your lifeline: insurance policies, business agreements, bank passbooks, income tax return forms, Form 16, salary slips, PAN card, marriage and birth certificates, automobile registration, house nomination copy and so on. There could also be military service records, spouse pension entitlement records and more. Keep your documents ready and available in one safe place.

Is there a will? Get the deceased’s lawyer to help

When a loved one dies, seek legal advice on matters like re-recording property deeds and disposition of shares, bonds and savings. Also, the disbursement of the insured's business and estate assets and the drawing up of a will for the widow or widower require immediate attention.

Check your spouse's medical, life insurance requirements

If the deceased had employee insurance, all group insurance benefits will cease on his death. Arrange for adequate medical and life insurance for the surviving spouse immediately.

Remember, insurance is not because we may die; it is because our dependants will live.

Get your CA to help with taxes

You may need to pay advance tax as well as income tax on behalf of the deceased. The tax officer may excuse some delay but may not take too kindly to non-filing of taxes. 

Notify the post office

Go through the deceased's mail and cancel subscriptions, phone and utility services, passports, driving license, return company ID cards, club memberships, etc.

Clear unpaid bills

Many installment loans, service contracts and credit card accounts are covered by some term life insurance cover and hence may not be payable. If the bills are not covered, consult your financial advisor on how to obtain a discharge letter when paying it off in full. 

Change or cancel ownership registrations

These could include cars, securities, real estate, bank accounts, credit cards, banking accounts, e-broking accounts, mutual funds, bank lockers, health and/or life insurance policies.

Be prepared for numerous trips to the lawyer, banks, mutual fund companies, etc. Just knowing that it is not going to be easy will make you feel a lot less frustrated with the slow pace of things. That is assuming all documents are in place!