Why Young Indians need wills

A Will allows you to clearly state your wishes regarding the distribution of your assets, be it savings accounts, investments, real estate, share of the company or even personal belongings.

Going by tradition, will writing in India has been associated with the elderly. The concept often carries the weight of finality. This leads the young people to put it off. However, in today's rapidly changing world, with a growing young, affluent population, the need for estate planning, including wills, is more crucial than ever.

In our new dynamic world, marked by a rising population of young, affluent individuals, estate planning, including the creation of wills, is increasingly imperative. But why should the youth take interest in such a mundane activity? Let us explore why young Indians should consider creating a will, debunking common misconceptions, and outlining the advantages of it being prepared.

Shifting demographics and financial landscape

There is a clear transformation in India's demographic landscape. It is widely accepted that India has the largest cohort of people below 35 years of age. It is also interesting to note that this young population is also experiencing economic growth, either through personal means or through inheritance. These factors are enough to point towards a growing need for financial planning and wealth management among young adults.

Beyond millionaires: Why young Indians need wills

The misconception that a will is required only by the wealthy  or those of an advanced age is a significant barrier to sitting down and creating such a deed. But the fact is that even young adults with seemingly modest assets can benefit from having a will. Here are a few reasons why.

Clarity and control: A will allows you to clearly state your wishes regarding the distribution of your assets, be it savings accounts, investments, real estate, shares of a company or even personal belongings. This eliminates confusion and potential disputes among loved ones after your passing.

Protecting loved ones: If you have minor children, a will allows you to appoint a guardian whom you know and trust and who will care for your children in your absence. It gives peace of mind and reassurance to have your wishes for your children's welfare formally recorded.

Digital assets: The digital age necessitates addressing ownership of online accounts, social media profiles and other digital assets. A will can specify how you want these handled.

Easing your absence: This is a proactive step that can make things easier for your loved ones in your absence and can make succession clear with the intervention of personal law.

The uncertainty of life

With the recent pandemic, the unforeseen nature of life was highlighted for all of us. Creating a will and executing it ensures that your wishes are known during a difficult time for your family.

Also read | How family trusts can help senior citizens and their NRI children manage properties in India

Addressing myths and concerns

I still have time: Thinking "I am too young" or I "still have time" is a common misconception. Unexpected events can occur at any age.

It's bad luck: Planning for the future is a responsible act towards your family, not bad luck!

It will take too long: It will take some time for you to collate the information about the things that only you know. Think how long it will take when you are not there.

It's expensive: We often spend on a lot of unnecessary things. We need to realise that this is a necessity. Also, basic wills are quite inexpensive.

My family knows my wishes: Unwritten wishes can lead to misunderstandings and conflict. A will provides clarity.

The benefits of early planning

Creating a will offers a sense of security and peace of mind. Here are some additional benefits.

Reduction of stress: A will minimises the burden on your loved ones during an already difficult time.

Flexibility: You can update your will throughout your life as per your circumstances and assets.

Enablement: It helps you to take control of your future and allows you to make informed choices.

Getting started: Resources for young Indians

Taking the first step can be overwhelming. Here are some resources to help.

Estate planners: An estate planner will ensure that you are given the right guidance and assist in formation of a will keeping your wishes paramount.

Lawyer: Consulting a lawyer ensures your will is legally sound and reflects your specific needs.

Financial advisors: Many financial advisors can guide you through the estate planning process, including creating a will.

Also read | All you need to know how to ensure tax-efficient inheritance

Conclusion

Estate planning, including creating a will, is no longer just for the wealthy or elderly. Young Indians with growing wealth and responsibilities have a lot to gain from proactive financial planning. A will ensures your wishes are respected, protects your loved ones, and provides peace of mind. In today's uncertain world, taking control of your future starts with a simple step: creating a will.

The author is head of trust and estate planning, Motilal Oswal Private Wealth.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.