Recently I came across a study that shows 80% of the pending cases in High Court are related to property. Todays' newspaper shows banks are sitting on a pile of FD's amount to Rs.3600.00 Crore which are unclaimed for more then 10 years after maturity.
In most of the cases reason might be that the FD holder might have died and his successor doesn't know about it or proper nominations were not done.
Why is it so that the same brother and sister who used to live as family suddenly becomes enemy after their parents death, it doesn't end there but is followed by unending process of court cases/litigation and high expenses.
We can stop this from happening in our family or friends by just preparing a small one or two page statement called as will or Estate Plan.
Contrary to perception, it is not necessary to write will on stamp paper or even get it registered. You can write a will on plain paper and it will be as legally valid as one prepared by a lawyer.
It's a myth that only super rich need to write wills. The fact is that everyone who owns a asset in any form should write a will so that his heirs do not face problems in accessing what is rightfully theirs and avoid disputes among them.The assets can be anything - Property, Jewellery, Painting, Cash, Bank FD's, Shares, Mutual Funds ,Insurance Policies, etc...
For most people, will making is do it yourself exercise. the only requirement is that the will should be legible. However, if your assets and ownership are a little complicated , you may seek help of a legal professional to draft the will.
Essential clauses of Will
- Name - The name and description like age, religion etc...of person making the will.
- Revocation of earlier wills : A declaration that the present will is his last will and he revokes all other earlier wills.
- Appointment of executors : A executor is a person who has been confided with the job of execution of will.
- Mention that you are not under any influence or duress while making the will. The witness must also attest the same at bottom.
- Give clear details of Assets and how it should be distributed.
- Residue Clause - It helps to include any other asset you may have left out inadvertently while enumeration your net wealth.
- Mention full name of beneficiaries clearly with address.
Points you should know :
- Preparation of will does not require any specific language
- Will need not be stamped
- Registration of will is not mandatory
- Will can be revoked by testator (Person making will) anytime during his lifetime.
- It is important to note that the attesting witnesses need not know the content of the will
- Review your will at regular intervals for the changes in your assets or due to change in circumstances (Like beneficiary or executor mentioned in will dies).]
Consult your financial planner as Estate planning is an integral part of Financial planning.
By sparing five minutes in a year you can avoid lot of litigation within your family member and also save them from lot of expenses and mental agony.
Boss, really informative post. I fully agree with your advise, that at any age with whatsoever assets, one needs to prepare will.
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