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OLM Desk - 28 July 2022

Siblings Can Take Joint Home Loan With Parents

Lolit Saikia

My brother and I are working and settled in Kolkata and Mumbai, respectively. We have a single-storey ancestral house in Guwahati, where our parents (both retired) live. We both want to settle down in our hometown after our retirement. Can both of us take a joint home loan to reconstruct the house now, or after the demise of both our parents, as our father has made the two of us the joint owners of the property in the event of death of both of our parents?

Yes. You two can take a joint home loan for reconstructing the house with the legal owners (your father and mother) as co-applicants, if you want to take the loan while they are still alive. If you want to take the loan after the lifetime of your parents, you can do it once you two are legally the joint owners of the property. Do note that you will be eligible to take a loan while both of you are working (as you have a source of income to repay the loan), and the tenure of the home loan ends on or brfore you retire.

Uma S. Chander, CFP CM, Handholding Financials


Shivraj Gokhale

My father passed away in 2016 and my mother recently. My sister has handed me a few documents, which contain shares of TELCO and TISCO in physical format that my father had bought way back in the 1970s. Now, these companies are known as Tata Motors and Tata Steel, respectively. We are two brothers and one sister. How do we proceed with proportioning the shares equally among the three of us?

To begin with, you need to get these shares converted into demat format. According to the latest notification by the Securities and Exchange Board of India (Sebi), from April 1, 2019 onwards, the transfer of shares in their physical form is no longer allowed. This means that if you need to transfer and/or sell the shares, you need to first dematerialise them, i.e., convert them from physical to digital form. According to the National Securities Depository Limited (NSDL), “dematerialisation is a process by which an investor can get physical certificates converted into electronic balances.”

In your case, you can either open a joint account with all three of you  as the joint holders, and convert the shares into the dematerialised form by submitting all the ‘know your customer’ (KYC) documents, such as identity proof, residential proof, transmission form, and the following:

  • A copy of the death certificate duly notarised;
  •  A copy of the succession certificate duly notarised, or an order of a court of competent jurisdiction where the deceased has not left a Will; or
  • A copy of the probate or letter of administration duly notarised.

If the legal heir(s) or the legal representative(s) express inability to produce either of the documents mentioned under (B) and (C) above, and the market value of the securities held in each account of the deceased as on the date of application for transmission does not exceed Rs 1 lakh, then the depository participant (DP) will process the transmission request on the basis of the following documents:

  • Transmission form
  • Copy of the death certificate duly notarised
  • Letter of indemnity duly supported by a guarantee of an independent surety acceptable to the DP, made on appropriate non-judicial stamp paper
  • An affidavit made on appropriate non-judicial stamp paper, and
  • No-objection certificate(s) from all the legal heir(s) who do not object to such transmission.

The DP will ensure that the documents submitted by the legal heir(s) or representative(s) are in order, and will then effect a transfer of the balances to the demat account of the legal heir(s) or the legal representative(s).

In case you want to divide the shares equally, then along with Will-related documents you will also need to submit an NOC of the other two persons along with all the other required documents stated above.

Hina Shah CFPCM, Financial Coach, LUHEM

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