Property-related disputes are already very high in India and such disputes may be seen in families where there are unclear directions with regard to the division of property or other assets. Such disputes often turn into legal battles wasting both time and money. In order to avoid such quarrels which, at times, take ugly shape and end up at the courts, it is essential to have a Will ready.
A Will is a legal instrument which documents and clearly sets forth your plans about distribution of your assets among your family members and heirs. It is worth remembering that a Will intends to spell out your wishes and intentions to take care of your children by not only distributing your assets after your death but also assigning the liabilities.
This helps the next generation avoid unnecessary hassles and probable hardships. In addition to it, you have a peace of mind knowing that your hard-earned possessions – property, jewellery, bank balance and others – would be in the right hands in accordance with your wishes. However, it is not an easy task to prepare the content of a Will as it demands a lot of clear thinking, foresightedness and ability to get over your emotions.
Adhil Shetty, CEO, Bankbazaar.com, says, “A Will provides clarity and legal validity, enabling the testator (the person making the Will) to specify the beneficiaries, the portions of assets each will receive, and any specific conditions or provisions. In the absence of a Will, Indian succession laws, governed by personal laws based on religion, could lead to intestate succession, where assets are divided according to these laws, potentially contradicting the individual’s preferences.”
Here are the five points one needs to keep in mind while drafting a Will.
Declarations
To begin with, ensure you declare your entire personal details like name, age, residential address and name of parents. Don’t use any abbreviations. Rather, disclose your details in full while writing your Will in order to confirm that you are in your full senses and not under any influence. This asserts you are in full control while outlining the details.
Asset Identification
Have a comprehensive assessment of all your assets – financial and physical. Identify them in a list so that you know what you possess. These should include your bank accounts, lockers, Insurance policies, investments in shares, mutual funds or bonds, retirement funds like PPF and EPF. Provide full details of them.
Executor
It’s worth reminding that your Will would come into force once you pass away. It essentially means that you won’t be there to see your Will being executed successfully. Therefore, there is a need for a person, in this case known as executor, to execute and implement the instructions in the Will after your demise. Executors are responsible for making sure the Will is put into work once you pass away. To avoid any confusions, the Will writer should mention the full details of his/her executors like his name, address and your relationship with him. Further, it is advisable to appoint a substitute executor as well who can take care of the Will in case the original executor is either unwilling or is unable to execute the Will as per your wishes.
Beneficiaries
List out the names of the family members or individuals who according to you should be the beneficiaries. This could be a very tricky proposition – emotionally as well as intellectually. While listing their names, it is always recommendable to use the full names of the beneficiaries while strictly avoiding their nicknames in your Will. Along with names, put their addresses and date of birth – matching with their birth certificates and your relationships with them. Once it is done, you can assign your assets to them in whichever proportion you want after a thoughtful process. While doing so, ensure your instructions are clear and there is no room of any ambiguities which could be misinterpreted later. If need be, you can take professional help from financial experts.
Witnesses
Once your Will is ready, make sure you get it properly signed, dated and witnessed by at least two people who must not be in the beneficiary list. Having said that, witnesses are not necessarily required to read your Will and know the content. They simply need to be present at the time when you sign your Will as legal requirement so that later no one questions the authenticity of the Will and the executor, or any other authority has the ready proof of the Will being witnessed.
Though your signature and dates are required on each page of the Will, one should take special care of the last page which should contain not only your signature but those of the witnesses as well with their names and addresses.
Shetty explains, “It’s instrumental in securing the financial future of loved ones and expedites the legal process of asset transfer, making it vital for individuals looking to preserve and transfer their wealth according to their wishes.”
Writing a Will is as important as reviewing it periodically. This makes sure your Will is updated with the latest updates of your assets and dates. However, while doing so, you need to either delete or destroy the earlier version of the Will as they can potentially create confusions. A Will is nothing less important than your financial planning and will help you take care of family finances even in your absence.