Question: What happens if the beneficial owner of an investment passes away?
Transfer of assets to the rightful heirs in case of death of the beneficial owner should not be a complicated process and should be similar to the process followed had the investment been held directly in the name of the investor.
Obviously, how and in what manner the process may evolve for the surviving spouse or the universal heirs also depends on whether the beneficial owner has provided for a legal will or dies intestate.
In the case where an investment is held in countries where probate applies, if the investment is held in the name of the investment firm under nominee, then the heirs will not go through the process of probate. It is highly recommended that in such cases, heirs seek the advice of a professional person, such as their notary, who can guide them accordingly. ‘Probate’ is the term commonly used when talking about applying for the right to deal with a deceased person’s affairs or administering the estate of a deceased person.
Probate has and still causes many heirs to investments a major headache as it is an expensive process and usually takes time – therefore holding foreign investments with a local financial intermediary might be advantageous to local investors.
There might also be tax matters which one needs to consider in such circumstances and therefore it is recommended that one seeks professional advice from a competent person to deal with any issues that may arise in this area.
