How Can Legal Heirs Claim Digital Gold?

How Can Legal Heirs Claim Digital Gold?

For ages, people have been purchasing gold because it is one of the low-risk investments and surely gives returns. But the pattern that has been seen for years is that people buy it for certain occasions, and one of them is weddings, to secure the future of their daughters. Other people buy it at major festivals like Diwali. But slowly and gradually, this trend of buying physical gold is shifting towards digital gold. And this is what this article is about.

We write articles on succession planning and financial hygiene. We not only help you with writing your Will but we also help create awareness among our audience with regard to claiming movable assets after a buyer’s death, especially digital assets. Many digital assets in India don’t have any regulation, such as cryptocurrency, digital gold, etc., and this makes it even harder to claim because many companies don’t even have a death claim policy, and even if they do, people rarely know. This article would be helpful to understand how to claim digital gold and what steps to take.

Read more: Solving The Huge Problem Of Digital Assets' Wealth Transfer-Part I

Understanding Digital Gold

Despite the growing excitement in the equity markets in recent years, gold as an asset class has begun to emerge in the minds of investors. Simply put, digital gold is a form of physical gold investment. It functions similarly to regular gold because it can be purchased online and is stored in insured vaults on behalf of the customer by the seller. Gold is a popular investment among Indians, who buy it to commemorate every auspicious occasion and pass it down to future generations. The purchase of physical or digital gold is determined by the customer's requirements.

According to the Axis My India survey, as reported by the ET Times, 65% of Indians invest a portion of their income. Gold is a popular investment option, with 53% preferring metal as an investment tool; 35% are aware of digital gold; and 10% have already invested in digital gold. Men account for 28% of those who invest through digital channels, while women account for 19%.

You can currently purchase digital gold from MMTC-PAMP, SafeGold, Augmont Gold, and other companies. Individuals can purchase digital gold by visiting the websites of these companies.

Many of these businesses also have partnerships with payment apps like Paytm, Google Pay, and PhonePe to buy and sell digital gold. An investment that’s been made very easy has attracted more and more people, and they're going to invest in it soon.

How do I claim digital gold after the buyer’s death?

In the unfortunate event of the buyer's death, legal heirs can request the delivery of the gold purchased. More or less, every platform through which digital gold has been purchased has similar requirements to meet. 

Step 1

Go to the website of the company through which digital gold was purchased and check their latest requirements, as they keep changing.

Step 2

In case, you couldn’t find any information regarding how to claim the digital gold, contact their customer care service, and they will help you with the approach.

Step 3

Start preparing these documents. The following documents are required to be submitted by legal heirs for due diligence:

1. Identity proof
2. Original or notarized copy of the death certificate
3. Proof of legal heirship i.e. legal heir certificate or succession certificate

Step 4

For the legal heir certificate or succession certificate, you need to approach a practicing advocate who can help you get either certificate from the court of appropriate jurisdiction.

Step 5

Once you are aware of the process, apply and upload the required documents.

If you are in the process of contemplating and considering planning your succession, which involves determining the distribution of your assets and property after you, it would be beneficial for you to seek the guidance and support of our knowledgeable legal experts who are well-equipped to assist you with every step of the process.