Why writing a Will is critically important for women

Nobody wants to think of their demise, as it is an unpleasant experience that can trigger a set of upsetting emotions. And the process of drafting a Will often conjures up these negative feelings. However, it is probably one of the most important ways by which people can secure the future of their loved ones in the event of their demise.

This is especially true for women who today are equal stakeholders in family wealth and inheritance, have their own businesses and are successful in high-paying jobs. Women must take the next logical step to secure their assets and make sure they are passed on to the rightful heirs.

What, why, and when of drafting a Will for women

In essence, a Will is a legally binding document that specifies the wishes and intentions of a person with regards to the distribution of their wealth and assets after their demise. A person who writes a Will is known as the Testator. It is easy to draft a Will and it remains one of the most powerful tools when it comes to succession planning.

There is a common misconception that if one has nominated heirs then there is no need for a Will. However, a nominee is merely a trustee or a caretaker of assets and they cannot be considered as heirs. Hence, choosing nominees does not dissolve the need to draft a Will. There is also the idea that writing a Will is something one should not consider until their old age. However, this is a misplaced notion as a Will that is made when a person is physically and mentally fit reduces the chances of being contested in a court of law.

If a person dies without a Will, it is known as intestate succession and inheritance is then decided based on the laws of the religion a woman belongs to. In India, if a woman dies intestate, the Indian Succession Act, the Hindu Succession Act and the Muslim Personal Law are applicable based on the specific case.

Also read: 7 tasks to complete for settling money matters after the demise of a loved one

Benefits of drafting a Will for women

For women, there are clear-cut and specific reasons that make drafting of a Will extremely important.

Care of your children: For mothers, nothing supersedes the well-being of their kids. Therefore it is important to leave behind instructions as to who would be in charge of taking care of your children in the event of untimely demise. This is especially true for minor children; usually, a surviving parent gets custody of children, however, in case of single or widowed mothers, the guardianship of children is an important matter that needs to be addressed in the Will. A guardian is someone who would take care of a child’s everyday needs and be with them for a significant period of their life. And if a woman doesn't choose someone through her Will, it could mean that an unwanted person could end up becoming their child’s caretaker.

Assets handover to rightful heirs: In India, succession laws are still skewed in favour of male members. For example, if a widowed Hindu woman with self-accumulated wealth were to die intestate, there is a strong chance that the court might rule in favour of her assets to be handed over to her husband’s family. This can happen even though she may not have any contact/taken any financial support from them for decades. Hence, it is crucial that women, whether married, divorced, widowed or single, name their heirs through their Wills so that their assets are distributed as per their wishes.

Lower risk of family disputes: Indian families are generally non-nuclear in nature; in an extended family with many children, there is an increased risk of multiple potential heirs. Thus for women who are part of such joint families, it is important to draft a Will in order to secure the financial future of their children and avoid family disputes. Clearly stating which assets would be allotted to each child is important to avoid long-drawn and bitter legal tussles between two generations of the family and between siblings.

Philanthropy: Across HNI and UHNI business families, women are at the helm of dynamic philanthropic ventures that impact thousands of lives and NGOs in need. In order to ensure that their wealth remains aligned with causes close to their hearts even after their demise, women must demarcate what part of their estate would be dedicated to philanthropic causes.

A Will is one of the most important tools when it comes to succession planning. And it must be formulated and drafted with great care at the right time. For a woman, it helps to safeguard her legacy, avoid infighting in a family, and ensures that after her demise, her children’s futures are secured. In addition to Wills, for women with larger asset bases, a Private Family Trust can help to ensure iron-clad protection for their wealth after their demise. Private Family Trusts are robust and do not require the process of a probate. Also, Private Family Trusts allow for flexibility in terms of naming beneficiaries and controlling how wealth is disbursed to them.

In times of global volatility such as this current pandemic, a woman can never have enough safeguards for her children. Both Private Family Trusts and Wills are thus all-encompassing ways to secure the financial future of a child and make sure that wealth is passed down to deserving beneficiaries in a smooth and hassle-free manner.