Summary of this article
Document assets and communicate clearly with family members.
Update nominations to ensure faster, direct wealth transfer.
Appoint a reliable executor to execute your will properly.
A substantial amount of money goes unclaimed each year, not because it’s lost, but because many families are unaware of their financial assets. The heirs cannot access wealth due to neglected investments and unclaimed bank accounts.
Unclaimed Wealth in India
Sebi-registered investment adviser and founder of Sahaj Money, Abhishek Kumar, recently highlighted this issue on LinkedIn, emphasizing the importance of documenting and communicating assets to family members. He noted, “Rs 80,000 crores sitting unclaimed funds. Because people won’t talk about the one conversation that matters most.”
He mentioned his clients to illustrate the problem. Last year, his client’s wife had no idea he held Rs 15 lakhs in mutual funds. In another case, his client’s family spent two years trying to access a bank account because there was no nomination.
Most people think a will is enough. “It’s not even close. You can’t just make a will and forget it,” Kumar explained. A will without proper documentation is like a house without a foundation. He advised taking important steps like obtaining a medical certificate on the same day, video recording the signing, and registering the documents.
Families may not even know all their assets exist, including bank accounts, demat accounts, mutual funds, fixed deposits, and digital lockers. Each type requires a different process for heirs to access it. A spouse might inherit Rs 50 lakhs and not even know where to start. The solution is to create an asset register, list everything, and keep it updated.
Why Nominations Matter
A nomination beats a will every single time. “With a nomination, your money goes directly. No courts. No waiting. No lawyers,” Kumar said. He noted that families have been able to access inheritance in just 15 days when nominations were in place, whereas the process could take years without them. He urged everyone to assign nominees to all financial accounts and have open conversations with family about holdings.
Most people find discussing money uncomfortable, but what’s more uncomfortable is leaving children to figure out what you owned after you’re gone. Call your spouse, call your children, show them where the money is, and explain your choices.
Finally, Kumar highlighted the importance of appointing the right executor. “A will without an executor is like a car without a driver,” he said. The executor should be trustworthy, nearby, younger if possible, and willing to ensure that your intentions are carried out. Don’t assume, ask them first.
By documenting assets, updating nominations, and speaking freely, the family can ensure wealth is distributed efficiently and in accordance with their preferences.
