Inheriting Locked-In Investments: Heirs Face Delays with ELSS, RBI Bonds After Investor's Death

Overview

When an investor passes away, their assets typically transfer to nominees or legal heirs. However, investments in products with mandatory lock-in periods, such as certain mutual funds (like ELSS) and RBI bonds, can cause delays. While some schemes like bank FDs and SCSS waive lock-ins on death, others require heirs to wait until the lock-in expires to redeem funds. This guide clarifies the rules for navigating inherited locked-in assets.