Renuka Iyer, 52, a successful architect, lost the battle fighting against COVID-19 in the summer of 2020. She is survived by her spouse Krishna Iyer and their two sons Ram, 28 and Rahul, 21. Coming from a strong commerce background, Renuka used to look after all the financial affairs, be they managing the bills, savings and investments in various asset classes. She was the true Finance Minister of her house. They had a Financial Consultant who was guiding her.
Her sudden loss was a big blow and a dent in the family. Krishna, being an Engineer works with a leading IT company and had minimal idea about where the monies were lying invested. Ram is married and manages his own funds. However, he went for his higher studies and has continued to stay in Australia. He is settled there for the last six years. Rahul is focusing on going abroad for his higher studies.
At a loss on what to do with their finances, and with little knowledge and help following Renuka’s sudden demise, Krishna reached out to their financial planner. There were many investments that were made in Renuka’s name. Writing a Will can help in transferring assets efficiently.
Many investors find themselves in this situation. They leave money management to one member. After the demise of the primary caretaker of household finances, the surviving partner may find it overwhelming to deal with the situation. Already he or she may still be recovering from the pain felt upon the death of a loved one.
Here are five things you should do to get the documentation in order.
Trust only immediate family member
When Krishna had no one else to turn to – at least in the initial days – he sought help from his brother in law, Renuka’s husband. The brother-in-law was an equity market investor and was well aware of investments and capital markets. But he soon realised that the brother in law wasn’t keen to help; he was, instead, keen to know about the financial status.
I have seen this in many families where opportunistic family members descend on the grieving family member with the hope of getting a slice of what’s left behind. The surviving member is vulnerable in these times and it’s always better to take advice from your trusted financial advisor or at least from your immediate family members who you share a personal rapport with.
Keep your family members informed
While we are alive, we must keep our spouses or children informed about our finances. If Renuka had taken more determined interest in involving her husband or sons in the financial investment procedure, this situation and need of involving a third party wouldn’t have arrived.
Do not delay any financial transmission procedures
Losing a family member isn’t easy and it’s quite painful. However, as seen above, you must get your documents and instruments in place soon. These formalities can take 6 months to even 2-3 years. There is also a timeline if there is a claim to be made for insurance proceeds. Hence, taking action in good time is essential and would accelerate the process.
Get multiple copies of all your important documents
As seen above, Krishna was in complete dismay when it came to the number of documents that required his signatures. Each of these documents needed to be attested with a copy of the death certificate, Aadhar, pan and many such documents. India is still a very document-oriented country where physical signatures and documents are needed. The main reason behind this is also prevention of any fraud. But it’s important to maintain a paper trail when assets get transmitted after the demise of a loved one.
Having a Will keeps the family protected
Write a Will. It is important. It not only protects the legal heirs, but also gives the deceased the full authority and charge over his/her assets. Disputes among legal heirs can also be averted. For instance, one of the sons might get a lower share as compared to the other, if the second holder, their father, is biased. This can cause unwanted disputes in the family.
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