• HDFC
• 13 Jun 2018
• e Will

HDFC, Tester

We all are aware that Life Insurance or Mediclaim policies are not a ‘mandatory’ requirement for any individual. However, many people have understood the possible events of life and have taken preventive actions to help themselves during difficult situations in life. Similarly, although wealth management isn’t a necessity, it can prove to be beneficial. Will writing is one of the components of wealth management. We tend to avoid writing a will unless absolutely necessary.

 

However, there are good reasons to know to avoid “delay or decision to not-to-write a Will”. Let’s look at the top 10 reasons:

1. Avoid Family Fights: The absence of a Will can lead to misunderstandings, and disputes between family members which may need legal help or court intervention and may result in resentment. A Will, even if on a plain paper which is duly signed in the presence of two witnesses, can be a good guidance to family members for legal distribution of wealth as per your wishes.
2. Peace of Mind: All our efforts during a lifetime are to cumulate wealth. We earn, save, invest and then re-invest to multiply money. These efforts are in a bid to ensure the financial security of our loved ones which ultimately gives us peace of mind. However, this financial planning remains incomplete if we don’t secure their futures. Setting up a trust or distributing your assets via a legal will can ensure your family’s security in your absence.
3. Life is uncertain: We often wonder about the ‘right age’ to write a Will. In the chaos of everyday life, we tend to forget that life is fragile and uncertain. There is no ‘right age’ to prepare a Will. It is recommended to prepare your Will as soon as possible. An added benefit is that you can change the will as many times as you wish.
4. Admissible Will: For a Will to be considered legal and admissible in court, it needs to be written with a sound mind, without any undue influence or coercion. Sometimes, family members or relatives emotionally influence aged individuals to make a Will which is in their favor. This helplessness can be avoided if you prepare a Will while you’re mentally fit.
5. Distribute wealth as per “Your Wishes and not as per Laws’: A Will allows you to decide for your own wealth – the way you wish to distribute depending upon your thoughts, conditions of family members, your relation with family/relatives, your desire to give some wealth to some friends or other relatives or caretaker, or your desire to donate to charities. Through a Will, all your wishes can be achieved. However, if there is no Will, your wealth will be distributed as per the judicial, religious or communal laws.
6. Avoid hassles of getting a Succession Certificate: A Succession Certificate is granted to the legal heirs of a person who dies without leaving a will. The civil court follows a procedure to determine the legal heir and the distribution of the wealth. Considering all variable factors, it can take anywhere from 3 to 6 months with expenses going up to Rs. 1 lakh to get the Succession Certificate. Such hassles and expenses can be avoided simply by writing a Will.
7. Determine Business Successor: Many individuals have their own business or profession into goods or services by owning a shop, factory, garage, warehouse, proprietorship /partnership firm, company, LLP etc. This is built by the person during a lifetime with hard work and would obviously require a ‘proper succession’ which can be a continuing income/wealth for the family for years to come. It has to be thought and decided through actions like estate planning or writing a Will.
8. Create Family Trust: We often think of a particular way of life for our family to lead, even in our absence. Creating a Family Trust fund can be instrumental in the protection of wealth while ensuring the continuance of the lifestyle you and your family desire. Business houses or High Net-worth Individuals often create a Trust fund with a Will whereby the full or partial wealth is transferred to a Private/Family Trust. Such Trust fund is managed by reliable trustees which could beneficiaries, relatives, professionals etc.
9. Nomination and Joint Holdings: Nominations and joint holdings are often considered solutions for legal wealth succession. It is a “myth” that once you do nomination or joint holdings, all wealth can be fully owned and used by the Nominee or Joint Holder. As per Indian laws, a nominee is merely a trustee who gets the custody or possession of the wealth or assets such as an apartment or bank fixed deposit. Although nominees have the power to distribute these to the legal heir/s as per the Will or as per the Succession Certificate, the nominees cannot legally ‘own or use’ such wealth or assets for personal use. Similarly, a joint holder’s responsibility is to distribute the estate of the deceased person as per instructions of the Will or according to the Succession Certificate.
10. NRI can save taxes on assets in India: Non-Resident Indians often have wealth, properties and assets in their resident country as well as in India. Indian laws permit NRIs to prepare separate Will for their assets and properties located in India. Whether it is land, bank accounts, investments, building or even a flat, an NRI can save taxes of the local resident country by not combining a Will of both countries.

 

Many individuals avoid preparing wills for multiple reasons. Lack of knowledge is one of the top reasons. You can already earn, shop, invest and save online. And now, you can prepare a Will online too. Created by legal experts, Wills are completely secure. Moreover, an extended time frame for completion make preparing an Will extremely convenient. You can try it here.