Every month at least one or two Chartered Accountants / Investors call me asking “I have a client (father / mother..) who died recently and has a big bunch of shares / mutual funds / etc. will you please tell me if there is some service provider who will sort it out?”
And my answer is : No. I do not know of such a service being available.
Last week I happened to visit a friend whose neighbor’s post was lying in this friends house. THE neighbor had died about SEVEN (7) years ago. Still the dividends were coming in the name of that person, his wife (also dead), cheques, mutual fund statements, balance sheets, were lying unattended. I know the children – they just do not respond. The have sold the house, but obviously not changed the address. I am not sure whether the cheques can even be encashed.
THIS happens to every portfolio of the pre demat era. Also to those portfolios where people have not got the shares dematted. Children who do not care about the shares when their parents are alive should be willing to write them off. This bunch of shares that I saw included 2000 shares of a shipping company. When we had bought this share it was a good dividend yield share – I guess he bought it for about Rs. 8 or 9 and used to pay dividends too.
Now the share price is Rs. 540. The children have no clue about how much is their parent’s portfolio worth.
My guess ? it is upward of Rs. 1 crore and every year about Rs. 3 lakhs of cheques are going uncashed.
Is it my business to tell this to the kids? Hell no. None of my business.
So if you have shares in your house in non demat form please convert it to demat form. That is a good first step.
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