What happens to your investments after you pass away?
At SCP we work with a range of New Zealand investors from all different walks of life. Some of our investors are well into enjoying their retirements by now. Many of those investors are thinking about what happens to their investment funds beyond their lifetime.
Having a plan for your investments after you pass away is important. Here is some information to help you ensure you look after your investments with SCP when that happens.
Continuing your investment legacy
You have a few different options available for managing your SCP investments after you pass away. You may want to hand over your investments to a beneficiary so they can continue investing. You may wish to close your account altogether.
In all cases, the executor of your estate or close family member needs to notify us of your passing. They also need to provide SCP with a certified copy of the death certificate signed by a JP or solicitor.
What options are available to you?
- If you have a joint account: If your SCP account is a joint account, then all current investments will be transferred to the surviving party. A new individual account is created, and all the investments will be transferred into that account. Some new details may be required, like a change in email address or bank account to receive interest.
- Individual accounts: Individual accounts will be closed with your passing, and we’ll require some more information from the executor of your estate. This includes the contact details of the solicitor handling your estate, their trust account bank details (to divert any interest and or principal repayments) and a certified copy of probate. Once probate is granted, this will allow investments to be paid out to the solicitors, as the loans are repaid and then disbursed to any beneficiaries in accordance with your will.
- Passing your account to beneficiaries: If your investments are to be retained by the beneficiaries outlined in your will then these beneficiaries will need to complete an application to become an investor and have their own account with SCP. This will enable them to continue investing beyond the investments they inherited from you if they wish. All the details about our application process are available on our Apply Now page.
- Keeping your account open: To do this, SCP opens a new account in the name of ‘The Estate of …’ after you pass. The solicitor, administrator and/or executor who will operate the account will need to supply a new bank account and IRD number for the estate and apply to become an authorised person with SCP. A copy of the will needs to be supplied to us to help us identify who this person is. Your investments are then transferred into the new account in the name of your estate.
Regardless of what you want to happen to your investments after you pass away, we understand it will be a tough time for your friends and family.
We’re here to be as helpful as we can during that time and welcome your family to reach out to ask us for help transitioning your investments at any time. You can contact our team for more information via email or Get In Touch via our website.
