General information only. Not investment, tax or legal advice. Naming a fund category is not a recommendation to buy, hold or sell anything. Prem Tax and Accounting Corp is a CPA firm, not a law firm. Rules differ by country and change often: confirm with the official source or a qualified adviser before you act. Read the full notice. Book a 10-minute call.

Mutual Funds in India

Nominees, heirs and moving countries: what happens to Indian fund folios

Since 1 September 2026 a folio can name up to three nominees. Here is how heirs claim units, where inherited money can go and what to update when you move.

Prepared by Prem Tax and Accounting Corp. Last checked against official sources on November 5, 2026.

A folio can pass to family and follow you across borders, if the paperwork keeps pace. This page covers nominees, how heirs claim units, where inherited money goes and what changes when you move. Our Heir-and-Hemisphere Binder holds the papers. Money rules: NRI rules and accounts.

The short version

From 1 September 2026 a folio may name up to 3 nominees. Any new single-holder folio must nominate or opt out, and no folio is frozen for lacking a nominee.
Units an heir abroad inherits from an Indian resident redeem into NRO; money leaves under the USD 1 million yearly limit, with proof.
On a move, update KYC, address and the FATCA and CRS form.

Slide show: Heirs and movers, in four slides

Nominate or opt out
Name up to three nominees, with shares, or sign an opt-out. Change either at any time.
Claim with Form T3
A nominee or heir sends Form T3, death certificate, PAN, KYC and bank proof. Redemption waits 10 business days after transfer.
Moving out of India
The savings account should become NRO, folios stay as non-repatriation holdings, and redemptions carry TDS.
Moving back
NRE accounts become resident or RFC accounts at once. An FCNR(B) deposit may be allowed to run to maturity.

Heirs when there is no nominee

Value claimed	Papers needed	Who attests the signature
Up to Rs 5 lakh	Indemnity bond, heirs' affidavits, no-objection letters	Bank manager
More than Rs 5 lakh but less than Rs 10 lakh	Registered will or heirship certificate, with indemnity bond	Notary or magistrate
More than Rs 10 lakh	Succession certificate, letter of administration or probated will	Notary or magistrate

Value is all claimed folios at the latest NAV, before splitting. AMFI guidelines (31 January 2024); fund houses may ask for more. Invented example: three folios worth Rs 1,70,000, Rs 3,10,000 and Rs 2,40,000 add up to Rs 7,20,000, the middle row.

Crossing borders

Heirs: in the U.S., an inheritance is not income, but Form 3520 reports more than $100,000 received in a year from a nonresident alien. In Canada, a deceased Canadian resident is usually treated as selling at market value, and heirs take that value as cost.
To the U.S.: PFIC rules usually apply once you are a U.S. person. Arrival gives no step-up in basis; how earlier years count is not settled. See our U.S. PFIC guide.
To Canada: most property is treated as sold and reacquired at market value on arrival, so keep that day's NAV and Bank of Canada rate.
To India: tax residence follows day counts each April to March. RNOR is a tax label, not a FEMA status. Residents' fund gains carry no TDS.

Not settled Whether the repatriation label survives a return to India, and whether a SIP registered in India continues after a move. See fund-house limits.

Mistakes people make

Believing a folio freezes without a nominee, or that 10 nominees are allowed.
Naming a nominee unread: one fund house's form bars nominees living in the U.S. or Canada.
Treating an NRI heir's units as freely repatriable.

Our checklist

The Heir-and-Hemisphere Binder:

Folio numbers, PAN and nominee details.
Death certificate and will or heirship papers, attested as accepted.
Date, NAV and exchange rate on any move day.
The dated new FATCA and CRS form.

Common questions

Can a relative abroad be my nominee?

Usually. The 2026 circular sets no residence rule, but one fund house's form bars nominees living in the U.S. or Canada.

Will a foreign death certificate do?

AMFI's guidelines carry no separate NRI list. Ask the fund house which attestation it accepts. Our [Indian CPA page](/indian-cpa/) shows how we work with your Indian adviser.

Are folios frozen without a nominee?

No. Freezing ended on 10 June 2024, and the 2026 rules use reminders only.

Official sources

Keep reading

Please read: general information only

This page gives general information and education about Indian mutual funds and about the tax and reporting rules that may apply to people who hold them. It is not investment, legal, tax, accounting or other professional advice, and it is not a substitute for advice from a qualified adviser, attorney or CPA who knows your facts. Reading it does not create a CPA-client or any other professional relationship with Prem Tax and Accounting Corp. Prem Tax and Accounting Corp is a CPA firm, not a law firm. It does not recommend, rate, sell or manage any mutual fund or other investment, and naming a fund category or product here is not a recommendation to buy, hold or sell it.

Tax and reporting rules differ by country and by person, and they change often: thresholds, rates, forms and deadlines are revised, and agencies, courts and fund companies change how they apply them. We checked the figures against the official sources named on the page on the date shown (last reviewed November 5, 2026), but we do not promise that this page is complete, current or free of errors, and we do not update it the moment a rule changes. Where the rules are unsettled we say so. Fund companies set their own policies on who may invest, and those can change without notice. Past performance does not predict future results, and investments can lose value. Examples are invented and for illustration only.

To the fullest extent the law allows, Prem Tax and Accounting Corp and its owners and staff are not responsible for any loss or decision that results from using this page. Links to government and other websites are for convenience and we do not control them.

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Questions about how your Indian funds are reported on a U.S. return? Keshav Agrawal is a U.S. CPA and a Chartered Accountant (CA) from India. We prepare the U.S. side (for example Form 8621, FBAR and Form 8938) and can work alongside your adviser in India, Canada or Europe. We do not sell, rate or recommend any investment. Book a 10-minute call or send us a message.

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Nominees, heirs and moving countries: what happens to Indian fund folios

Nominate or opt out

Claim with Form T3

Moving out of India

Moving back

Heirs when there is no nominee

Crossing borders

Mistakes people make

Our checklist

Common questions

Official sources

Keep reading

Let's talk about your taxes, your business, your plans.