Invested in mutual funds in the name of minors? What to do when they turn 18

The minor who has turned major needs to apply for PAN or else update existing PAN records with their photo and signature. Application can be made using any of these portals: Protean (formerly NSDL eGov) ( https://tin.tin.nsdl.com/pan/index.html) or portal of UTITSL (https://www.pan.utiitsl.com/PAN/).

The applicant needs to open a new bank account as a major or update the existing one from minor to major status. Once this is done, the bank can issue a cheque book with the applicant’s name imprinted on the cheque.

Next, the applicant needs to complete the mutual fund KYC process by fi lling out the KYC form and submitting identity and address proof documents as required.

Next, the applicant can fill up the minor attaining majority (MAM) form and submit it along with the following documents:

Copy of PAN
Copy of KYC acknowledgement
A cancelled cheque leaf with the applicant’s name printed on it
Nomination form
Signature attestation by banker in the prescribed format.

Even while the child is a minor, the ownership of the units vests in the minor, and the guardian can carry out transactions on behalf of the minor.
All standing instructions such as SIP and STP stop automatically when the minor turns major.

(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)