Basic financial tasks to do when a parent dies

Step 1: Get multiple copies of death certificate

This is the first and most crucial step since the death certificate will be required at all the financial institutions where you want to close accounts, transfer assets or investments, make a claim, or even sell the deceased’s assets.

Remember to take adequate number of copies and get them attested, if required,” says Jayant Pai, Head, Marketing, PPFAS. “In case the death is in abnormal circumstances, obtain the relevant coroner’s report, autopsy report and a letter from the police station,” he adds. Every death needs to be reported and registered within 21 days in the prescribed reporting forms.

If the parent passes away at the hospital, you will have to fill a form with details like the deceased’s name, age, father or mother’s name, address, etc. This is forwarded to the registration centre/zonal office of the local municipal body, from where the death certificate is issued in the specified time. For multiple copies, download these from the municipal website.

Make sure these details are exactly the same as in your parent’s official records like the Aadhaar or PAN card. A spelling mistake or a name written with initials instead of the full name can cause problems.

Step 2: Get succession certificate if there’s no will/nominee
As a next step, locate the will, if there is one. The importance of having a will cannot be over-emphasised because of the ease it offers in sorting financial matters after the death of a parent. It clearly defines how all assets are to be distributed, to whom, by whom, and minimises disputes within the family.

Step 3: Locate all financial documents 
The next crucial, and difficult, task is to locate and identify all the financial documents of your parents. It helps if your father or mother is organised and has already arranged various papers systematically under different heads. If not, be prepared for a long, tedious process of collating and sorting all the documents.

Step 4: Make a list of dues & liabilities
A corollary to organising financial documents is preparing a list of all liabilities, some requiring immediate attention. “While some payments are automated through ECS and don’t require monitoring, there are others that are not and have to be paid immediately. This is why it is critical to take note of the regular and other expenses,

Step 5: Notify financial institutions
The next big step is to intimate and inform all relevant financial institutions of the demise. These will include banks, insurers, companies where investments have been made, tax department, and utility bodies. “You also need to inform all creditors including banks (credit cards), home loan/personal loan    company, etc

Step 6: Close or transfer accounts         
“Check out the procedure for making a claim or effecting other changes. Every institution has its own procedure and it is advisable to familiarise oneself with it

Step 7: Check income and investments
The death of a parent means that the surviving spouse’s financial plan will change due to the alteration in the holding pattern of investments. Since the joint accounts will change to single accounts, the permissible limit of investment will fall, affecting the inflow.

Step 8: File tax returns on parents behalf
This is a task that can be easily overlooked, but needs to be done. “The income tax return has to be filed by you as a legal representative for the financial year in which the demise took place and till the date he/she was live,

“The filing is mandatory if the gross total income from all sources is above Rs 2.5 lakh below 60 years of age, Rs 3 lakh for 60-80 years and Rs 5 lakh above 80 years. The return can be filed for last two financial years

Step 9: Protect your parent’s identity 
Last, but not the least, don’t forget to erase important documents and online presence of your parent. Cut out the ATM or credit cards as well as other physical financial documents with personal details that are no longer needed in such a way that numbers and details are incomplete