The family member may use an ATM in the case of a savings account, if one knows the PIN otherwise one can approach the bank
We explain how the family of the deceased can get the money. It is always difficult to deal with the sudden demise of a family member. Apart from the emotional setback, families are often seen struggling with the financial aspects of it when the deceased is the earning member of the family as they generally don’t share details of savings and investments with the other family members. However, in case the family has some basic information then it may be easier to get further details
For example, in the case of a bank account, if the family member knows the bank in which the deceased had the account, it may be easier to get the money. The family member may use an ATM in the case of a savings account, if one knows the PIN otherwise one can approach the bank.
In case the account holder has given nomination details, the bank will give the money to the nominee. “The nominee is the person designated by the depositor to act as the trustee of the bank account in case of their demise. So, the default person who can access the funds in a singly operated account is the nominee," said Adhil Shetty, CEO, Bankbazaar.com.
However, in case of absence of a nominee the money will be given to the legal heir.
“In case it is a singly operated account, then the heirs may have to present the will of the deceased stating their claim on the asset. In case the deceased died intestate, then the bank may be willing to deliver the assets to the legal heirs on the basis of Indemnity – cum – Affidavit if there is no reasonable doubt about the genuineness of the claimants. In this case, all the legal heirs making the claim will have to jointly submit an indemnity to the bank," said Shetty.
In case of a joint account, the surviving member will get the money.
“In case of a joint bank account, the surviving member becomes the absolute owner of the account in case of death of one of the joint holders," said Vikas Jain, co-founder share Samadhan pvt ltd.
However, experts advise that one should share the details of investments with family members to avoid these hassles.
“To avoid any hassle, individual bank accounts should be opened, and nominee should be surely appointed. Alternatively, a joint bank account should be opened with the person whom the account holder wishes to make absolute owner in case of death is also advisable." said Jain.
In order to get the money, the family will have to follow certain procedures.
“Keep all documents handy. This includes the depositor’s death certificate and the nominee’s ID and address proof. It is also important to remember that the nominee is not the heir to the asset. The nominee is only the trustee of the assets and in the absence of a will specifying that the nominee is also the sole heir to the assets, the other legal heirs can make a claim to the asset," said Shetty.
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