Be there for your kids even after your death : The importance of will planning

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“Main apni jayadad se tumhe bedakhal karta hu”

How often have you heard a billionaire say this to his rebellious son in Hindi films? If you’ve always thought that only uber rich people write a will and undertake succession planning, think again. Per government data, India currently has a staggering Rs 1,50,000 crores worth of unclaimed assets. As per experts, these are mostly innominate insurance, bank account deposits that people have forgotten about.

Moreover, about Rs 5,675 crores are also lying dormant as of 31st January, 2023 in the investor education and protection fund (IEPF), where all shares, dividends, debentures and accumulated interest that has stayed unclaimed for 7+ years are transferred. 

So that your lifetime’s earnings and assets don’t end up in such funds, and your children get to reap the benefits of your life’s work, it is important to have a will. 

Don’t worry, it’s nothing but a legal document that details how you wish your assets to be transferred. Remember, the quantum of your assets does not matter. You just need to have two witnesses while signing the will, and appoint someone who will execute your wishes. No registration or notarization of your will is needed, too. Also, you do not need multiple wills and legal registrations if you own assets across multiple jurisdictions. However, as Sanchit Garg, CEO & Co- Founder GLC wealth advisor LLP notes, registering a will reduces the likelihood of any disputes or challenges arising after death. 

So, everyone who holds certain investments, be it bank accounts, fixed deposits, mutual funds, insurance policies, real estate or any other assets/investments, should plan for their family’s future by having proper measures in place during their lifetime

Not just for the rich 

Says  Vishnu Chundi, Founder and CEO, AasaanWill, “A will is relevant for individuals from all financial backgrounds who are looking to safeguard their assets. It’s important because it ensures that one’s belongings are distributed to the rightful owners, according to their wishes, helping avoid family disputes and legal complexities”. 

Moreover, a will lets you take a comprehensive look at all that you own. And depending on life milestones, like marriage, childbirth, purchasing a home etc. this will change. In that sense, you should continually update your will, instead of making it a one-time process you’ll  undertake once you’re old. Legally, anyone aged 18+ in India can write a will.

Intimidating? Not so much!  

Think will, think scary lawyers, lengthy consultations and high expenses? Well, it’s not so. Generally, lawyers charge anywhere between Rs 20,000-50,000 for making a will. But you can also initiate your will-making process via online platforms like AasanWill, Yellow, WillStar for as low as Rs 899. 

You can also get it customized, in case you hold joint assets with your spouse. Depending upon how basic or detailed you want your will to be, the prices can range from Rs 5,000 to Rs 30,000. Additionally, you can also avail services like family trust creation, probate services and more. 

More often than not, people confuse nomination with succession planning or writing a will. That is not true. Says Nikhil Verghese, Co-founder of Yellow, an online legacy planning site, “People think that since they have added a nominee to their DEMAT A/C, bank account, they have done enough. That’s not the case. A nominee is just a custodian or a trustee of your assets. The actual owner is either defined by your will or if not by your will. Anyone can be a nominee, but they might not necessarily be who you want to pass on your assets to. Sometimes, people want to bequeath their assets to charity. In such a case, having a will is necessary”. 

What you should remember 

Garg lists down a set of pointers you should keep in mind while preparing a will. This includes your name, address and the name of the person designated to execute your will. 

“The need for making the Will should be spelt out along with the fact that the testator is of a sound mind and is making the Will voluntarily and without any coercion. Use of unambiguous language in bequeathing of your assets is a must. The Will should be signed by the testator and attested by two witnesses in the presence of one another. Any family member, legal heir, friend or professionals like CA/lawyers can serve as executor”, he highlights .