We spend an entire lifetime accumulating assets. How do you ensure that you leave it behind for the right person? Bollywood movies have fed us with stories of wily characters trying to take over properties with innumerable fights over estates. You could save your children/other inheritors from legal hassles and unnecessary squabbles if you leave behind a will.
As important is financial planning to secure your future, so is estate planning for securing your assets.
We bring you some simple pointers which can be kept in mind while making a will.
Making a will is for everyone
There is no age limit for making a will. Anyone over the age of 21 can make a will. Another popular notion is that making a will is only for the rich and famous. It need not be so. Any individual with any amount of assets can make a will.
You do not have to wait until you grow very old to make your will. A will should not be made under any duress, and you should be in the right mental health.
You cannot have a verbal will
A set of verbal instructions cannot be called a will. The will need not be on a stamp paper but has to clearly written/typed with details of the person making the will.
List out all your assets
A will should include all the assets of an individual. It is a good idea to draw up a list of all assets before you start making the will.
Be sure to include details of all the assets like the location, account numbers of bank accounts, folios of mutual funds etc. Did you know, you can also divide your liabilities in a will? For example, a loan on a property being bequeathed.
Be clear about your beneficiaries
Just as you should be very clear about which assets you would want to bequeath, you should be clear about the beneficiaries for each of those assets. A will should also be very precise about the division of assets.
The value of your assets like real estate or investments in mutual funds/stocks and shares can fluctuate. So, it is ideal that you mention division in percentage terms than in absolute values.
Laws of succession
Bear in mind the laws of succession in India before you make your will.
The property acquired by an individual can be bequeathed to anyone. It may be anyone from the family, friends, to charity or anyone at all. But there are certain exceptions.
However, a Hindu cannot bequeath his/her ancestral property to anyone at all. The law of succession says that it should only go to his sons/daughters.
Witness
A will has to be signed and dated in the presence of two witnesses. It will be good if you can get your doctor and lawyer to act as your witnesses. It would quell any doubts about the veracity of the will.
Appoint an executor
An executor is a person who ensures that a will is executed in the manner the deceased wished.
If your will names minors or some elderly individuals as beneficiaries, then it is good to appoint an executor. Generally, an executor is not one among of the beneficiaries of the will. It is helpful to have an executor when there is complexity involved in the division of assets.
Guardian for minors
If minors are the beneficiaries of your will, you may want to appoint guardians who would take care of the assets until the minors grow up.
Modification of will
A will can be modified any number of times. There may be situations like sale or addition of an asset. These changes can be accommodated in the will. Each of the corrections should be signed by you and the witnesses and dated. The latest will is the one that stands good.
If you are not sure of drawing up a proper will, you could take the assistance of your lawyer. Online will-making services are also plenty! Here are a few:
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