PROCEDURES FOR WILL BEFORE AND AFTER
SHIVAJI
(Querist) 17 January 2011
This query is : Resolved
Dear Sir/Madam
Please tell me related issues to be done before/after making a WILL.
Thank you
d
A V Vishal
(Expert) 17 January 2011
A Will is a legal document through which you can allocate your wealth to your loved ones after your death. This has tremendous benefits. Firstly, your wishes have to be adhered to by your family members, thus avoiding acrimonious legal issues between them. Secondly, you can stop worrying about the distribution of your wealth.
When an individual dies without making a Will (‘intestate’), his property will be inherited on the law of succession applicable to that person. Succession to property of Hindus is governed by the provisions of the Hindu Succession Act, 1956. Succession to property of Muslims is governed by the Muslim Law. The rest, viz. Sikh or Buddhist is governed by the Indian Succession Act, 1925.
Preparation of a Will should not be confused with nomination. Nomination grants holding rights of a particular property in favour of a nominee, as prescribed in a Will. In simple words, a nominee is a trustee for the rightful owner, who should hand over possession / ownership of property to the rightful owner as per the directions in the Will.
A Few Simple Steps
Making a Will is not a difficult task. Just follow these simple steps:
Make a detailed note of all your wealth, including your bank accounts, investments in equity, mutual funds, post office schemes, bonds, property, gold, etc. Collect various details such as your bank locker number, bank account numbers, your demat account number, etc.
Decide on who should be the executor of your Will. A close friend, but younger in age to you, whom you trust completely would be a good choice.
With the help of a professional, prepare your Will and include all the details of your wealth. While planning distribution, be very clear on how much each person gets. For instance, if you want to allocate funds in your bank account to two family members, clearly state the percentage each should get. Make the Will document foolproof i.e., there should be no vague statements.
Your Chartered Accountant, familiar with your assets and conversant with legal implications, can prepare a Will for you.
Get your Will registered. While registration is not legally required, it adds authenticity and prevents subsequent complications. Keep it safe!.
A Will must always be dated. If more than one Will is made, then the one having the latest date will nullify all other Wills. In fact, it would be better to make a statement nullifying all other Wills.
Create your Will as soon as you’ve accumulated substantial wealth. For instance, if you’ve purchased a flat, this valuable asset will become the focal point of concern among your family members. It is important that only you decide on who gets this vital asset on your death.
But this doesn’t mean you can no longer accumulate any more wealth. You should provide for allocation of future wealth build up in your Will. This will help avoid the hassle of creating a fresh Will periodically.
Each page of the Will should be serially numbered and signed by the Testator and the Witnesses. This is to prevent substitution, replacement or insertion of a page or pages by persons with fraudulent intentions. At the end of the Will the Testator can indicate the total number of pages in the Will. Corrections if any, should be countersigned.
Know the Basics
A valid legally binding Will does not require any stamp paper. It could be on plain paper. However, the paper should be of durable quality that lasts long.
But it should be signed by you, in the presence of two other witnesses who should sign in the presence of each other.
You should be in sound physical and mental health while making a Will and hence one of the two witnesses could be a family doctor who could testify, if necessary, to that effect.
Executor(s) of the Will should be ideally younger in age than the maker of the Will. A beneficiary can also be an executor of the Will.
Execution of the Will attracts no stamp duty, no gift tax, no income tax nor any estate duty. It facilitates a smooth devolution of your wealth to the desired persons.
A Will supersedes the provisions of the Succession Act.
Guest
(Expert) 18 January 2011
experts elaborately discussed. kindly follow them
N.K.Assumi
(Expert) 18 January 2011
I would also like to add that there are a number of options when it comes to making your Will, but I would always recommend consulting a professional. It may seem cheaper and easier to write a Will yourself, but a professional will ensure that all the legal formalities are correctly followed and that your Will is valid. A valid Will gives you peace of mind that your exact wishes will be carried out the way you intended. Before arranging to have a Will written, it is worth drawing up a list of assets (and your debts). This should give you a clearer idea of what your final estate will look like.
You could set it out like the one below:
Assets:
• House
• Cash savings
• Bank/building society/savings account
• Shares
• Bonds
• Life policies
• Pension funds
• Household contents, jewellery, possessions
Debts:
• Mortgage
• Loans
• Other debts
Think about who you want to carry out your wishes when you’re gone. This person should be appointed as your executor. This can be a very rewarding role, talk it over with your friends and family to appoint the right person.
Choose the type of legacy
There are several different types of legacy and choosing how to make your gift is an important decision. Consider each option carefully and select the one that’s right for you.
Residuary legacy
This is a gift of the remainder or percentage of your estate after all other legacies have been made and debts cleared.
Residuary legacies keep up with inflation and are an effective way to divide the value of an estate between a number of people and causes that are important to you.
If you are considering what type of legacy to leave Cancer Research UK, a residuary legacy can help your gift go further.
Pecuniary legacy
A gift of a fixed sum of money. The value of pecuniary legacies will decrease over time, as the cost of living increases.
Specific legacy
A particular named item left as a gift in your Will is known as a specific legacy, for example, a piece of jewellery.
Contingent gifts
Legacies made on the basis of another event happening first are called contingent gifts. For example your Will could state that a gift only applies if all other beneficiaries named in your Will die before you do.
Life interest or reversionary legacy
This is a gift which someone can benefit from in their lifetime. For instance, your house could be left for the use of a relative. When they die it could pass to someone else, or to a charity.
Get the wording right
It is important that the following clause is included in your Will, whichever wording you need to use: "If at my death any charity named as a beneficiary in this Will or any Codicil hereto has changed its name or amalgamated with or transferred its assets to another body then my executors shall give effect to any gift made to such charity as if it had been made (in the first case) to the body in its changed name or (in the second place) to the body which results from such amalgamation or to which such transfer has been made."
Keeping the Will current is just as important as making one in the first place. It helps you look after your family and friends and ensures that your final wishes are carried out the way you want.
Generally you should review your Will every time a 'life-event' happens. For example when:
• you marry
• you have a child or grandchild
• there is a death in your family
• there is a change in your financial circumstances
• there are major changes in the types or rates of taxation
• you are going to live abroad
• you are moving to shared accommodation
• you separate or divorce from your spouse or partner
Updating your Will is a simple task, but you should consult a lawyer to make any changes.
V.Mahadevan
(Expert) 18 January 2011
By way of an addition to has been said on the subject in the previous replies - I offer-
"The maker of a WILL may at the foot of the Will add a signed declaration that he has made a copy thereof and deposited the same with the Executor of the WILL and, in the event of the loss/ mutilation of the original WILL, the copy available with the Executor should be acted upon.
mahadevan
