Query on transferring shares on accountholder death

#1
Hi, I recently came across this online community and looking for some help on my below questions.It would be of great help if you can clarify and provide your suggestions.
My husband passed away about 8 months back. He used to hold dmat and trading accounts in icicidirect and those are still on his name. Though he was the account holder, but I used to invest and operate that account .
There are number of good shares in that account with mix of profit/loss. About 25% of portfolio is into mutual funds which are at very good profit. No nominee name is mentioned in icicidirect.
However, in the icici bank account linked to that demat account, my father in law is mentioned as nominee.

1. Will I be considered as legal heir of those holdings - both shares and mf by icicidirect ?

2. I found out that transferring the shares from icicidirect direct is a cumbersome process.
Can you Please suggest, if I should sell all mutual funds and shares, to take out whatever profit is there, instead of transferring those to my name ?
*I do have access to his accounts both bank and trading, so can sell it off.

Or

Shall I approach icicidirect to open a new trading/demat account on my name and then transfer the holdings from my husbands account to mine ?
Will there be lot of legal issues and paperwork required ?*
 
Last edited:

ethan hunt

Well-Known Member
#3
Hi, I recently came across this online community and looking for some help on my below questions.It would be of great help if you can clarify and provide your suggestions.
My husband passed away about 8 months back. He used to hold dmat and trading accounts in icicidirect and those are still on his name. Though he was the account holder, but I used to invest and operate that account .
There are number of good shares in that account with mix of profit/loss. About 25% of portfolio is into mutual funds which are at very good profit. No nominee name is mentioned in icicidirect.
However, in the icici bank account linked to that demat account, my father in law is mentioned as nominee.

1. Will I be considered as legal heir of those holdings - both shares and mf by icicidirect ?

2. I found out that transferring the shares from icicidirect direct is a cumbersome process.
Can you Please suggest, if I should sell all mutual funds and shares, to take out whatever profit is there, instead of transferring those to my name ?
*I do have access to his accounts both bank and trading, so can sell it off.

Or

Shall I approach icicidirect to open a new trading/demat account on my name and then transfer the holdings from my husbands account to mine ?
Will there be lot of legal issues and paperwork required ?*
Assuming deceased was a Hindu & died without leaving behind a WILL.

Deceased's Father is not a class I heir so can not get son’s inheritance.

Deceased's Wife, Mother, Son, Daughter etc are class I heirs & shall equally share the deceased's assets.

Father being a nominee may stake claim for money with the bank, but legally does not have any right to use it for self. He has to give it to class I heirs eventually.

Case I :

You sell the shares, money goes to linked savings account, you make claim for money from bank. Bank will go super slow on your request waiting for any other claims to be made.

Your FIL may make a claim being a nominee & may even get the money in absence of any counter claim. In this case you will have to ask him for money (looks dicey) or get a succession certificate from court & ask for it’s execution.

Banks will ask for succession certificate if none of the parties staking claim back off by providing NOC/relinquishment in favour of other party. Banks may ask for succession certificate if the amount is large ( even a lack of rupees is large for them) or to avoid any legal problems later on.

Provided banks do not take cognisance of the fact that you have used the trading account after the death.

Case II : Inform bank regarding the death. Go to court for succession certificate, pray to court to give direction to banks to sell the shares & deposit the proceedings in FDR & freeze the accounts till the case is decided to avert any loss due to stock markets crash.
 

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