After a death: claiming mutual fund units
When someone dies holding mutual funds, who claims the units and what they need depends on one thing: who is named on the folio. Here is the checklist for each case.
Moving units to the right people after a death is called transmission. SEBI simplified it in 2026 (circular of 23 July 2026, in force 30 days later), and how much paperwork a family faces now depends mostly on who is named on each folio.
Nominee, joint holder or legal heir
- Surviving joint holder: the units pass to the surviving holder or holders first.
- Nominee: where there is no joint holder, the nominee claims. The nominee receives the units as a trustee for the legal heirs — the fund house pays the nominee, and who finally owns the money is settled by the will or the law of succession.
- Legal heirs: where there is neither, the heirs claim, and the documents depend on the amount.
The checklist
Before you start
- Find every folio the person held: their Consolidated Account Statement lists them, and MITRA searches for old, inactive ones.
- Note who is named on each folio: a joint holder, a nominee, or neither. That decides which list below applies.
- Keep several copies of the death certificate; each fund house needs one.
If there is a surviving joint holder
- A copy of the death certificate. Under the 2026 rules that is all the surviving holder or holders need; the units pass to them.
If you are the nominee
- The fund house or registrar’s transmission request form.
- A copy of the death certificate.
- Your own KYC, complete and current.
- Your bank account details for the units or proceeds.
- Remember: a nominee receives the units as a trustee for the legal heirs.
If there is no nominee and no joint holder (legal heirs)
- Holdings of up to ₹10,000 per fund house: the lightest route, open to immediate relatives only — parents, spouse, children and parents-in-law.
- Up to ₹10 lakh per fund house: a simplified route, without court documents.
- These limits are for units held in statement-of-account form. For units held in a demat account they are ₹30,000 and ₹30 lakh.
- Above that: legal proof of entitlement. Probate of a will is no longer mandatory under the 2026 rules; the fund house tells you what it accepts.
- On every route: the transmission request form, the death certificate copy and each claimant’s KYC.
After you submit
- The fund house completes transmission within 21 calendar days of receiving complete documents.
- Keep the acknowledgement for each folio, and a copy of everything you sent.
Printable copy of this checklist
Where to send it
Each fund house handles its own folios, through its office or its registrar. Transmission requests can also be started on MF Central, the registrars’ shared portal. If you are not sure which fund houses are involved, the Consolidated Account Statement and MITRA are the places to look.
For your own folios
Every step above is lighter when a nominee is on record and contact details are current. Updating your nominee takes one request per folio.
Source: SEBI circular HO/38/13/11(14)2026-MIRSD-POD/I/17111/2026, 23 July 2026, on simplified transmission.
This is education, not advice
This article explains categories and mechanics. It does not name a scheme, does not rank anything and does not tell you what to buy. H2 Investment is an AMFI-registered mutual fund distributor (ARN-200996), not a SEBI-registered investment adviser. For a personal financial plan, talk to a SEBI-registered investment adviser. Tax treatment depends on your own circumstances and the rules change — confirm your position with a qualified tax adviser.
Related
Claim questions, answered
Who gets mutual fund units after a death, the nominee or the legal heir?
The fund house transfers the units to the surviving joint holder or, failing one, the nominee. The nominee holds them as a trustee for the legal heirs, so ownership in the end follows the will or the law of succession.
Is probate needed to claim mutual fund units?
Not mandatorily, under SEBI’s July 2026 transmission rules. Smaller holdings have simplified routes; for larger ones the fund house tells you which proof of entitlement it accepts.
How long does a mutual fund claim take?
The fund house completes transmission within 21 calendar days of receiving complete documents.
What documents does a nominee need?
The transmission request form, a copy of the death certificate, the nominee’s own KYC and bank details for the payout.
H2 can do this paperwork with you
A claim is paperwork at a hard time. We can gather the folio list, fill the forms with you and follow each one up with the fund houses.