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NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Tools for Estate Planning

Caselet: Mr. Kapoor, a resident, holds a mutual fund folio jointly with his wife on 'either or survivor' basis and has nominated his son. He dies. The units are worth Rs 12 lakh. Who is entitled to receive the units first under the folio operating instructions?

The surviving wife receives the units first. With joint holders, the units pass to the survivor on one holder's death, and the nominee becomes relevant only after all joint holders have died.

  1. AThe son, as the nominee
  2. BThe surviving wife, as the surviving joint holderCorrect
  3. CAll legal heirs equally
  4. DThe wife and son jointly in equal shares

Explanation

Where there are joint holders, on death of one holder the units vest in the surviving joint holder. The nominee has a claim only when all joint holders have died. The son would come into the picture only after the wife's death, and then only as nominee for the legal heirs, subject to the rules.

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