How-to nominee claim MF inheritance

How to claim mutual fund units via nomination

From WebNotes, a public knowledge base. Last updated 19 May 2026. Reading time ~4 min.

Key facts

Time required	2-6 weeks at AMC typical
Documents	Death certificate, nominee KYC, bank account, indemnity
Multi-nominee	Per percentage split registered in folio
Tax	Transmission tax-neutral; future redemption taxable

Procedure

Gather documentationDeath certificate (original / attested). Nominee’s KYC: PAN, Aadhaar, address proof. Bank account (cancelled cheque). Relationship proof to deceased.
Submit Transmission Request FormAMC’s nominee claim form. Include: deceased’s folio details, nominee’s identity, bank for proceeds, requested action (transfer to new folio in nominee’s name or redemption).
AMC verifies nomineeConfirms nominee’s identity matches registered records. Verifies death certificate authenticity.
Process transmissionUnits transmitted to nominee’s name. New folio in nominee’s name. Cost basis preserved; holding period inherited.
Receive notificationConfirmation of transmission. Welcome letter to new folio. SoA reflects nominee as new holder.
Operate new folioNominee can now redeem / switch / continue SIP. Standard MF operations apply.
Tax for future redemptionCost basis from deceased + nominee’s redemption: capital gain computed using inherited cost. Tax per regular framework.

Claiming MF units as a nominee is the fastest transmission route. With nominee pre-registered, the process bypasses succession certificate / court proceedings. The nominee receives units in their own name with continuous cost basis and holding period.

Conflict-of-interest disclosure. This guide is published by WebNotes Editorial Team for informational purposes. WebNotes has no commercial relationship with any AMC. No affiliate commission is earned.

Step-by-step procedure

See the procedure infobox above.

Single vs multi-nominee claim

Single nominee: All units transmit to one nominee. Simpler claim.

Multi-nominee: Each nominee claims their registered percentage. Each submits separate claim. Units split per allocation.

Example: Spouse (50%), Son (25%), Daughter (25%). Each independently submits claim; each receives respective percentage.

Documents per nominee

Document	Detail
Death certificate	Same for all nominees
Nominee’s PAN	Each individual
Nominee’s Aadhaar	Each individual
Bank cancelled cheque	Each nominee’s bank
Address proof	Each individual
Indemnity bond	Standard format
Transmission form	Per nominee

Tax efficiency for nominee

Transmission tax-neutrality is valuable:

Deceased’s holding period inherited.
Cost basis preserved.
LTCG-eligibility carries over.

Example: Father held units 5 years (LTCG). Father dies. Nominee son inherits. If son redeems next month: LTCG (not STCG), because father’s 5+ year holding counts.

Multi-AMC nominee claims

If deceased had folios across multiple AMCs:

Each AMC’s folio: separate claim.
Same documents per AMC.
Independent processing.

Use MFU / MF Central to identify all folios.

External references

References

SEBI (Mutual Funds) Regulations, 1996.
Income Tax Act, 1961, Sections 47, 49.
Indian Succession Act, 1925.
AMFI Best Practice Guidelines on transmission.

Reviewed and published by

WebNotes Editorial Team

The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.

Last reviewed: 19 May 2026
Conflicts of interest: WebNotes is independent. No relationship with any broker, registrar or bank named in this article.