At times, families in India, face a nightmare situation after the death of their near & dear ones even to get control of the investments left by the deceased. This is particularly because during the lifetime of the deceased, the investment details are not openly & freely discussed with the family. The family is not completely aware of various bank accounts, insurance policies, mutual fund portfolio, stocks portfolio and investment in other asset classes – held by the deceased.
Financial planners and wealth managers say legacy investments becomes a huge problem, as old-timers believed in buying (investing) and holding forever. After years (many a times, decades pass) it becomes difficult to get a status update of the investments. Thus, it is very imperative that one should take control of one’s investments during his/her lifetime. We should try adhering to some of the key aspects mentioned below
- Maintain proper record of all investment instruments and the amounts invested in each of them either in a dairy or notebook or in computer / laptops.
- Go back regularly and update the record as some investments may be automatically redeemed on maturity. Ensure you make additions for new investments in the record
- Wherever possible, get converted all the physical share certificates into demat form.
- Check / update at regular intervals your bank account, correspondence address and nomination details
- Signatures sometimes change in old age. Therefore, it is better to ensure spouses or children are made joint holders in banks
- Keep at least one family member aware of all your investments
- Plan & prepare your will in advance and update them, if so desired / required