Why to create a will before reaching eternity?
What is a will and why to make one before reaching eternity?
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Physical Assets and Documents
No matter how much property or physical assets one has in today’s time of extreme litigation and cumbersome paperwork, it means nothing if their isn’t proper documentation to prove it. It’s somewhat similar to the saying “Put it on Paper” which people at large often use whenever talking about returns on their investments.
Somewhere in our minds we do know how important right documentation is when it comes to wealth but we just neglect it anyways and where we leave ourselves & our children open to things we would never want them to go through.
Now what happens when you can’t actually prove what you own belongs to you?
Things get bad, really bad real quick. Because if you can’t prove it’s yours you cannot liquidate it too and when you can’t liquidate nor provide for to prove that it’s yours, then what good is it to you anyways.
Now what all are things to pay attention to when it comes to physical assets?
- Ownership or not - Living in a house, occupying it does not mean one is a sole owner of the property.
- Legal Title exists or not - Simply living residing at a house say from 30 years when the property is on paper jointly held by the extended family does not indicate sole legal title i.e One cannot say that this house is mine.
- Need for clear holding pattern - Specially in case of ancestral property one needs to be aware if the property like an old haveli that you went to for spending your summer vacation as a child can actually have 50 owners along with your great grandparents or their are people who need to release their rights. So in case of selling the same, contacting and finding every individual will be tiresome.
- Rights of less empowered - Old people, minors or like women in earlier times didn't have much say in financial decisions and they weren't well versed. So in case the property is sold such less empowered dependents are gonna suffer a lot.
- Jewellery : Yours or not - Wearing a necklace for a decade does not ensure ownership. Whom does it belong too is a question to think about. Like on whose income tax returns that jewellery is mentioned or for the people who don't file the return should at least have the purchase bills.
Now it’s not that without the above mentioned things sale transactions are not made. But the process gets too lengthy to fulfill all the necessary formalities.
Nomination and Wills
Now this is one of the major concerns people even with our growing finance industry service standards are still unaware about. And the people that do know postpone it for some reason or another or they just say ‘Not Today’.
- Where does Nomination hold over Legal Heirs - Generally legal heirs get preference in the aspect but nominees do get picked first in certain cases such as when it comes to beneficial nominees like in an insurance claim amount. Now the beneficial nominee is somebody who is sort of an immediate relative like parents, spouse or children.
- Employee Provident Fund - In case of unmarried people third party nomination can be made but when the individual gets married only the family can be nominated and such family includes spouse, kids and so on.
- Assume nominee may need to prove their right - Dual statements should be avoided that contradict one another. Like the bank account is nominated to the son but in the will it goes to the daughter.
- Why Nominate - To ensure that there is someone to take charge of the assets to whom the funds can be transferred until the process of inheritance is completed.
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What if there is no will - In India there two types of succession. One is testamentary succession i.e when you have a will in place and the other is intestate succession i.e. when you don't have any will in place and in such case the person laws come into the picture.
In India their are various personal laws in existence but their are four major laws that govern such situations for people which are :
1. Hindu Law
2. Islamic Law
3. Catholic Law
4. Parsi Law
Hindu Law - First category of legal heirs involve Class 1 legal heirs. In case of Hindu male it includes mother, wife and children and in case of women it involves husband and the kids. One important point for all Hindu females is if they don't leave behind a will the first right would be of the husband and the children then the legal heirs of the husband and in the end the parents of the female.
Components, registration, to probate or not?
The components include factors such as simplicity of the will i.e. the will in most the cases will be maximum of two to three pages even with all the minor details.
Mentioning the fact that the will is the last one that the individual is making without being under any sort of pressure physical or mental.
The will include information about the members of the family and the assets owned by the party on the particular date or if their are any particular liabilities to be taken care of.
Then comes the point to mention which asset is going to be inherited by whom and when.
To register or not to register?
While Registration of a will is not compulsory in any states of India but it does facilitate in proving whether the will is legit or not since to register a will one has to go to registrar’s office with the witnesses who sign too. This procedure now is often video recorded in most of the cities for ease in proving facts later.
To probate or not to probate?
Probate is mandatory when the will consists of immovable property in the cities of Mumbai, Calcutta and Chennai or when somebody is not in agreement that it is a valid will.
When a will can be challenged?
- Not Signed/Witnessed
- Coercion
- Conflict and Suspicion
- Influence
- No Testamentary intention
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Usage of no stamp paper is mandatory when it comes to a will as well as notary isn’t required as well but some opt for it when the will is not registered just to get an extra layer of security.
When the person has mental issues in the past, a doctor’s certificate is required otherwise also a personal fitness certificate is attached.
In total two witnesses are required who shouldn’t benefit in any way possible from the will.
Executor shall also be appointed to see that the said wishes are fulfilled and the assets are distributed accordingly.
Gourav Ahuja
Hi, i am a gamer. I play with words. I believe in persistence no matter how hard or cumbersome the path of perfection may be and due to this constant urge of achieving what i want people often think me to be abnormal but according to me i just don’t get embarrassed easily since i am already maxed out.
