Where there is a WILL, there is a way!
Indeed your English teacher has taught you the above saying in school. You must be wandering what significance this saying can have in your adult life. Now even though you have grown up, the phrase holds the same significance but with a different interpretation. It can not only alter your �life� story but also save you being witness to the family �drama� from the heaven.
Yes, I am referring here is making of the Will. I mean, you need to make a �Will� to ensure that your legal heirs inherit your assets the way you want them to and they have a successful and a happy �Way� ahead in their life after your death. You earn and save throughout your life so that you and your family can live a happy life forever. But, if you haven�t made a will, your task of giving direction to distribution of what you have earned remains unaccomplished.
A Will forms a part of your estate planning. People generally get confused and assume Estate planning as Real Estate planning. Not many know that Estate planning entails planning of distribution of all your assets to your family/legal heirs in the event of your death. The assets may include immovable property like your house, property, land or financial assets like your investments (Shares, Mutual Fund units, Bank account), household items, jewellery or any other such assets which you may have.
Why should you to make a Will?
� To ensure that to your loved ones inherit your wealth as per your wish: If you haven�t made a will then, you cannot be sure that all your assets will be distributed to the people as per your wishes ; in case of your death. This problem occurs generally incase of movable personal assets, where you cannot provide for nomination/beneficiary like investments and insurance, which may cause disputes about ownership of these assets which you would never wish to happen. If you wish to bequeath asset to a minor, then you can appoint a guardian for the same.
� If you do not want distribution of your wealth as per the respective Succession Act: If you die without making a will, i.e. you die �in-testate�; then all your assets are distributed to your legal heirs i.e. spouse and children equally as per the provisions of Hindu Succession Act for Hindus and Indian Succession Act for people other than Hindu. However a Will overrides all the nominations, except for nomination in physical shares as per the Indian Succession Act.
� Succession to your business: If you have a business and you want some one to continue or you wish to wind up the business after your death, then you can mention it in your will. Thus making a will enables, that no third party can or has right to intervene your business after your death. Moreover it ensures that the assets held under the business are handed over to the right person.
When should you make a will?
People generally think that they should make a will after they retire. But, you don�t know how long will you live, hence it is never early or late as such when you decide to prepare a will. Thus, you should make a will after you own any assets whether movable or immovable. Since, will is a revocable document, you can also alter your will as many times as you wish to. You can add new assets in your will and also change the beneficiary anytime. Any adult can make a will so the legal age for making a will is 18 years. So, there is no specific age for making a Will.
How to prepare a will?
A will can be made on a stamp paper or even on a plain paper. It can be written in any language, you wish to write. Please note there is no specific format for making a will. First of all you should prepare a list of assets, that you own. Then you should prepare a list of people (including legal heirs and relatives), whom you wish to bequeath these assets. Once both the lists are ready you should name the persons who will inherit the respective assets. At least two persons must sign the will as witness, in token of acceptance of the fact that the executant has signed it in their presence. Witness has to be an adult; thus a minor cannot be a witness to a will. You need to appoint at least one person as executor of the will, who will execute the will after the death. The executor has the right to distribute the assets to the beneficiaries as per the intention mentioned in the will. It is not necessary to register a will; however, it is always advisable to get it registered. A will can also be notarized.
Just like you do your financial planning for your family�s future and goals, it is equally important to ensure that your assets, even after your death; are inherited by the person whom to wish by creating a will.
So, by now I am sure you have got an idea how easy, useful and important it is to make a will and would be willing to prepare a will at earliest.
You know now that if you have a will to make the will, there is a way to make it. I believe this justifies the saying � Where there is a will, there is a way�!
Author works for Apnapaisa.com, a price & features comparison engine for loans & investments.