Inheritance Planning: Unclaimed Assets, New Opportunities

Inheritance planning is crucial to ensure the smooth transfer of unclaimed assets to the rightful heirs. With growing concerns over unclaimed assets and the lack of proper nominees, there is a pressing need for innovative solutions to address these challenges. 

The Challenge of Unclaimed Assets

The Reserve Bank of India launched "Udgam", a centralized online platform, to help locate and claim unclaimed assets, which now exceed 1.25 lakh crores, growing by 10,000 to 15,000 crores annually. This challenge creates opportunities for startups in inheritance planning. 

Opportunities for Startups

At GFF 2023, Union Finance Minister Smt. Nirmala Sitharaman emphasized the role of startups in inheritance and asset transfer management. She also expressed the government’s openness to collaborating on innovative inheritance solutions.  

Responding to queries on startup collaboration, she emphasized the government's commitment to tracing assets and ensuring they return to rightful owners through diligent measures. 

"I want banking systems, financial markets, stock markets, and mutual funds to consider that when someone deals with their money, individuals nominate their heirs, providing legitimate names and addresses” 

Union Finance Minister Smt. Nirmala Sitharaman at GFF 2023 

She urged financial institutions—banks, stock markets, and mutual funds—to ensure asset holders declare and update their heirs to prevent unclaimed assets. She also invited inheritance startups to offer innovative solutions for addressing this challenge. 

“While people will have the chance to change this information as many times as they want, it should not bind them forever. It is the organization's responsibility to ensure that no account is left without a nominee.” 

Union Finance Minister Smt. Nirmala Sitharaman at GFF 2023 

Key takeaways 

Government Collaboration: Startups are crucial for developing solutions in inheritance planning and asset transfer. Partnering with government initiatives can further enhance management and resolution. 

“Comments are currently being reviewed to solve this issue, and nothing stops startups interested in this area from offering solutions to the government. We would be happy to receive such help." 

Union Finance Minister Smt. Nirmala Sitharaman at GFF 2023 

Leverage Technology: Platforms for inheritance planning and asset transfer are crucial. Technology can greatly reduce unclaimed assets by improving the management and updating of beneficiary information. 

Conclusion 

Tracking unclaimed assets and ensuring that they return to their rightful heirs requires financial institutions and inheritance startups working together with government collaboration. Pooling skills and resources will help find efficient ways of managing assets, reducing unclaimed assets, and promoting financial stability.