Do you need help with the process of settling a deceased person’s claim on Bank accounts? Here is a step-by-step guide that simplifies it for you!
Handling the claim settlement of a deceased person’s bank account can be an overwhelming and confusing process. With the right knowledge and some guidance, though, it doesn’t have to be. This guide provides you with everything you need to know about easing the deceased claim settlement of a bank account.
Death claim settlement without nomination is a bit lengthy than the claim settlement with nominee. The reason is simple, when a person nominate someone earlier then it eases out the settlement process.
It does away all the legal implications linked to death claim settlement with legal representation. Settlement of assets without legal representation is possible only when there is an active nomination in the particular asset about to settle.
Settlement of account with nomination is quite simple. There is a single page format which you have to fill it out. Along with that submit documents such as death certificate, KYC of the nominee (Claimant) and surrender all the account related papers to the bank.
Bank official verify the documents submitted with the data available at their end. The liquidated assets will be credited or disposed off toward nominee.
When claimant is a legal representation, the process of settlement is quite lengthy. In order to eased out the claim settlement of bank account, it is advisable to make yourself acquaint with basic necessities. Here are some of the points worth knowing.
Gather all relevant documents.
The first step of easing the claim settlement process is to gather all the relevant documents that may be needed in the settlement process. These documents include the death certificate, will, power of attorney and Letter of Administration.
All parties involved should have copies of these documents in case they are required during the claim settlement process.
Contact the bank and provide them with the relevant information.
Once you have the necessary documents, contact the bank and inform them about the death of the account holder and provide them with all the required information. The bank representative will mark deceased status in the account and guide you on what is needed for settling the claim.
When the account is marked deceased, account operation will be ceased and frozen.
This may include submitting a written request, providing signature identification documents such as copies of ID cards and passports. After submitting all the paperwork, it is best to follow up with a phone call or personal visit to ensure that your documents were received and to find out when they can be processed.
Send copies of applicable documents to the bank, such as a death certificate or will.
In addition to sending in the written request, it is important to also send copies of applicable documents that help prove the death of the account holder. These can include a copy of the death certificate, will or other legal documentation.
These documents will help confirm that you are the valid next-of-kin or executor and enable smooth processing of the claim. Make sure to keep copies for your own records as well.
Verify the account type and balance at the time of death.
It is important to know the types of accounts and funds held at the institution. To determine the balance in all accounts at the time of death, you can review past account statements or use online banking tools.
Knowing this information beforehand will make it easier to process the claim as it reduces any discrepancies between expected and final balances due to interest or other factors.
You can explore other details too. When a person open a bank account, other facilities such as Fixed Deposits, investment portfolios and safe deposit lockers. If these facilities are there, you better include all of it. To find out, talk to the bank officials and confirm.
Provide Supporting Data for Verification.
Collecting all the data to prove that you are the executor or administrator of the estate is necessary in order to settle the deceased claim. The registry may ask for documentation such as a death certificate, letters of administration or probate. It is essential to gather these documents and submit them willingly so that the process is smoother and faster.
Sureties To Support Your Claim
When the settlement amount in context is large, bank usually ask for sureties who are credit worthy. Preferably unrelated persons with good standing and command in the society are accepted.
When the amount involved in it is large, you have to arrange for sureties. This arrangement of sureties beforehand will smoothen the settlement process.
Paper Execution That Requires Stamping.
There are certain documents that you need to have stamping. The stamp paper to be executed depends on the area of jurisdiction. Find out what stamp value is required for the same. Your bank is in a better position to provide you the details.
Below listed papers are executed in stamp papers and should be notorized.
- Letter of Indemnity
- Letter of Disclaimer