I am running few SIP. My nominee is my son who lives in Europe. My question is if I die , in future can my NRI Son run the SIPs in his name
Ans: Yes, in most cases, your NRI son can run the SIPs in his name if you die. Here's how it typically works:
Nominee Inheritance: Since you've nominated your son, upon your death, he will be the legal heir to the SIP units.
Account Transfer: Your son will need to contact the Asset Management Company (AMC) managing the SIPs with the necessary documents proving his nominee status (death certificate, nominee form etc.). The AMC will then initiate the process of transferring the SIP accounts to your son's name.
Points to Consider:
Account Type: The process might differ slightly depending on whether the SIP account is held jointly or singly.
Tax Implications: There might be some tax implications depending on the type of SIP (equity or debt) and the country of residence of your son. It's advisable for your son to consult a tax advisor in his country of residence for any potential tax liabilities.
Here are some recommendations:
Contact AMC: Get in touch with the AMC managing your SIPs for their specific nominee inheritance and account transfer procedures. They can provide the most up-to-date information.
NRI Regulations: Advise your son to familiarize himself with any regulations specific to NRIs inheriting financial assets in India.
By following these steps, your son should be able to claim and manage the SIPs smoothly after your passing.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
