Why is it necessary to make a will of your property?

“Main apni jaidad se tumhe bedakhal karta hu (I am depriving you off all my assets)”

How many times have you heard a billionaire say this to their rebel kids in Hindi films? If you’ve always thought that only  rich people write a will and plan for succession, think again. India currently has a staggering Rs 1,50,000 crore worth of unclaimed assets, most of which are insurance or bank account deposits that people have forgotten about.

Moreover, as of 31st January 2023, about Rs 5,675 crores are lying dormant in the investor education and protection fund or IEPF. All shares, dividends, debentures and accumulated interest that have stayed unclaimed for 7+ years are transferred to IEPF.

So, to ensure that your lifetime of hard work goes to your children or those you choose instead of  ending up in such funds, it is important to have a will.

A will is 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. You do not need multiple wills and legal registrations if you own assets across multiple jurisdictions.

Sanchit Garg, CEO & Co- Founder GLC wealth advisor LLP says that everyone who holds certain investments, be it bank accounts, fixed deposits, mutual funds, insurance policies, real estate or any other assets/investments, should have a  will. Moreover, registering it reduces the chances of any challenges arising after your death.

Vishnu Chundi, Founder and CEO, AasaanWill says that a will is relevant for individuals from all financial backgrounds who are looking to safeguard their assets. It is important because it ensures that one’s belongings are distributed to the rightful owners, thereby avoiding family disputes and legal complexities”.

Anyone aged over 18 is eligible to draft a will. However, depending on life milestones, like marriage, childbirth etc, you should continually update your will.

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.

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. He says that 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. The use of unambiguous language in bequeathing of your assets is a must.

The Will should be signed by the person and attested by two witnesses in the presence of one another. Any major individual, like a  family member, legal heir, friend or professionals like CA/lawyers can serve as executor