I have made my mother as the nominee for all my mutual fund (MFs) investments. Does she need a PAN to claim the sum if something happens to me?
Harish Kaushal, Panchkula
It is mandatory that you mention a nominee whenever you make a mutual fund investment. In case of demise of the unit holder, AMCs, allow transmission of scheme units to the nominee or joint holder or even legal heir of the primary holder in cases where there is no clear nomination detailed. In case anything untoward happens you, your mother will need to intimate the AMC with details of the investment folio and request the transfer of the investments to her name. The AMC will seek bank details and KYC of your mother in case the value of investments are more than Rs 50,000. KYC means, she will need a PAN.
However, some AMCs allow an exception to this requirement if the nominee does not continue to hold the investments and redeems the same. In such cases, the nominee’s bank account details is sought to transfer the proceeds and there is no need for PAN. Again, it would be in your interest to get a PAN for your mother, lest she faces problems of monies being transferred to her in case you precede her.
