Death in a family is an unsurmountable loss to family members and it takes a lot of time to come to terms with it. We have observed that accessing fixed deposits (FD) of the deceased person often becomes a long drawn, stressful process for legal heirs even as they grapple with their grief. Many families are waking up to this unfortunate reality as the COVID-19 second wave continues to leave a trail of death across the country.
People are realising how imperative it is to affect a smooth transition of assets. While FDs are a good instrument for senior citizens to park their funds, earn regular interest, and plan succession, it is also important to pay attention to details such as the holding pattern of the FD and operational survivorship clauses.