Shares held in the name of a deceased share/unit holder are transferred to their legal heirs/successors on production of certified copy of death certificate and other documents necessary to uphold the validity of their claim.
To get shares transferred, send the relevant share certificates to the company along with the certified copy of the transfer deed duly filled in and signed by the transferee. You will also have to produce a certified copy of the registered will or succession certificate obtained from a competent court of law. Some companies do not insist on a succession certificate, and instead obtain an indemnity bond/undertaking, as provided in the articles of the company. Check with the company or its registrar/share transfer agent for the details and format of the documents to be produced in this regard. If there are other legal heirs, the transferee should get a ‘no objection certificate’ from them.
In case the shares were held in a depository account, the legal heir should ask the concerned depository participant to transfer the securities to his depository account. The following certificates must be submitted to the DP:
A notarised copy of the death certificate.
A notarised copy of the succession certificate, or an order of a court of competent jurisdiction, or notarised copy of the will.
A notarised copy of the probate or letter or administration
However, if the value of the shares does not exceed Rs 1,00,000, a letter of indemnity, an affidavit, and no objection certificate from other legal heirs, if any, would be sufficient in place of the copy of the succession certificate or probate. Only one request needs to be made for all the shares held in the same depository account.
Transferring mutual funds units depends on the terms and conditions of the issue of the units. Normally, the conditions and procedure for transmission of units are mentioned in the offer document, and may vary from one fund to another. The procedure for transferring units is similar to the procedure for share transfer, though mutual funds normally require only a certified copy of death certificate and an indemnity/undertaking along with the request for transmission. Check the offer document or approach the concerned funds for the exact procedure.