Nine key financial details about you that your family should know
It is important to keep a record of your finances and your key advisors around you. In case of any unfortunate eventuality, your assets can be passed on smoothly to loved ones
Losing a loved one is a painful experience. But it’s still important for the surviving members of the family to pick up the pieces and move on. Even as you plan for a smooth transition of your assets to your legal heirs after your time, your family needs to be aware of the experts you engaged to set your finances in order as also other key details.
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Having a Will allows you to pass on your financial, physical and digital assets to the people or institutions you’ve chosen to. But where will your family go looking for your wealth? There are some key people in your life that’ll help your family unlock your moneybox. Their details and a list of your most important documents define your financial docket.
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Chartered accountant: Your chartered accountant or tax consultant has a good idea about your income and expenses. But most importantly, after you pass on, even before you estate gets distributed to your legal heirs, you need to pay your pending taxes and liabilities first.
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Financial advisor: Your financial advisor or even your mutual fund distributor knows your investments. At least those that you’ve bought through her. She also helps in the transmission process . Your investments can be moved to your legal heirs’ names, after your demise.
Insurance agent: You may have bought health insurance policies through your agent. In case you die in a hospital, your loved ones would need to claim your hospital bills from your health insurance company. Or, it could be a life insurance policy that was taken for the benefit of your nominee. They will need your agents’ contacts for help in making the claim.
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Stock broker: Many of us buy and sell shares throughout our lives. Buying shares through online brokerages has become common now. Whatever be your route, it’s best to write down the details of your stock broker. Their details are just as important as your financial advisor's.
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Lawyer: Even if your legal matter is settled in your lifetime, it might rear its head again later. But if the legal matter is an on-going one, chances are that your legal heirs would have to carry it forward to its logical conclusion. That’s why knowing who your lawyer is, would help them.
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Make sure you keep all the details handy at a place where it is easily accessible. Typically, their names, addresses and contact numbers would suffice.
Passport and driving license: It’s always better to keep the original copies in a safe place and inform your family about it. They are important.
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PAN and Aadhaar: These two numbers are arguably the most important details. Our Permanent Account Number (PAN) is used in all capital market investments. And our Aadhaar is used in all our bank accounts, gas, electricity and telephone connections, as well as all those places where we are required to comply with the Know-Your-Client (KYC) norms.
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Credit / ATM cards: Make a list of all your credit and ATM cards as well. After a person’s demise, the credit cards must be surrendered. Even if your loved can’t find your credit cards, just your details would help. ATM cards, too, would have to be surrendered or cancelled. Otherwise, they’d still be active and be mis-used if someone can figure out your passwords.
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Try and make a copious list of your ATM cards, credit cards, debit cards and write basic details down in a file. It's always better for your legal heirs to terminate your cards after you've passed on, lest they fall into wrong hands and get mis-used.
Kayezad E Adajania heads the personal finance bureau at Moneycontrol. He has been covering mutual funds and personal finance for the past two decades, having worked in Mint and Outlook Money magazine. Kayezad was the founding member of Mint’s personal finance team when it was set up in 2009.
