The result of the current pandemic has been the stark realization of how fragile life can be and how important it is to plan for passing on your assets to your loved ones. But are your assets only confined to the money you made, the real estate you bought and the shares you invested in?
What about your life experiences, your learnings, your success mantras, your core beliefs and values that guided you all throughout? Can you let them die with you or would you like to pass on the story of your life and make it a lasting legacy beyond money and real estate?
If your answer is “yes,” then writing an Ethical Will is the solution for you.
What is an Ethical Will?
The practice of leaving an ethical will has existed for centuries, back to the first recordings of history. In ancient Jewish tradition, fathers wrote these letters to sons for reading after the patriarch’s death. The pharaohs in Egypt used to pass on such directives to convey wisdom, values and instruction to successors in managing their kingdoms. Unlike a legal Will, which is a tool for transferring your assets and property, an Ethical Will is basically a special kind of letter, also called a “legacy letter” or “forever letter” that aims to pass on personal values, guiding principles, memories, spiritual beliefs, and wishes for your family’s future. It can be written as a letter explaining the particular distributions in the Will or it may be used to capture your vision for the future and your memories of the past.
Also read: All about various Wills for smooth wealth transmission
When must you start writing your ethical will?
It is advisable to start working on it post retirement. Because, by this time, you have lived a large part of your life and have enough experiences and learnings to share. Now, an ethical Will has no legal significance, can’t pass any property to anyone, or be legally binding. It has no pre-set format; it’s an ongoing experience and can be created over a period of time. You can write it as a diary, a letter, a power point presentation, a collage, an audio or video message – anything would do. The point here is to get your message across.
How to write your Ethical Will
Think about the most significant events, moments, and experiences in your life. What are your happiest memories that you would like to share with your family? What were your most challenging moments? What would you like them to know about your hopes for their futures? How do you expect your future generations to conduct themselves? Organize all these thoughts and start jotting down in an informal letter format. Try to focus more on love and encouragement. Avoid statements that your loved ones might find painful such as criticism or judgment. Difficult topics, such as regrets, apologies, and family secrets should be handled tactfully. If you want to write about a bad experience, try to use it as an example of a lesson learned, one that made you stronger and more resilient. Remember, Life learnings and family legacy should be the ultimate objective of this exercise.
Also read: Follow these 7 steps to transfer assets smoothly to heirs after your time
Writing an Ethical Will does not mean that you can do away with your legal Will. That is still important. A well-drafted legal Will ensures that inheritance issues don’t crop up after you die and that there are no loopholes or problems for your heirs. While writing an Ethical Will is not so prevalent yet, it surely adds a broader perspective to the legal Will.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
