[TrackDay]

I would like to add another point here that I missed earlier - Keeping your documents updated before writing/registering a will.

I have heard of an ongoing dispute in a certain household where the parents wrote a will leaving everything to their son (Let us call him Mr. A). However the house they stayed in landed in a dispute. Reason being that this house was passed on to Mr. A's parents from his grandparents. The parents during their lifetime never bothered to update the house documents as it was understood that the words of the grandparents were final and that the house was theirs to keep. However years later when Mr. A decided to demolish the old house and build a new one he faced problems regarding documentation. Since the house was never in his parents name, he would require some form of NOC from his parent's siblings. Here comes the interesting part. One sibling is mentally unwell - meaning that person's signature/NOC is not valid. Another sibling had passed away and Mr. A would require signature from their children who are abroad. In short - a complete mess and difficult situation. So always make sure your current documents are all updated and in your name with the correct details such a name, age, place etc. before registering a will.

[shivmarwaha]

Good evening. Will it be possible to share a template for the will. Most of the online templates are not in a language that an ordinary person can understand. Thanks

[diyguy]

Thank you everyone for the contributions so far, could you also share experiences of taxation due to inheritance, if any?

[akshaymahajan]

Slightly OT: Is there any trusted online portal where all family members can keep details of assets? Something that multiple people can access - need not have passwords, but at least accounts numbers, insurances, etc

[NetfreakBombay]

Originally Posted by shivmarwaha

Most of the online templates are not in a language that an ordinary person can understand. Thanks

I recommend that you use services of a lawyer. Language and clauses are convoluted to cover all edge cases that can be used in future to challenge the will.

In Mumbai, it will cost 10k to 50k for normal cases to draft and register a will. Cost increases if additional work is required (such as issues with chain of agreement of apartment, mismatch in names in documents..).

Originally Posted by diyguy

could you also share experiences of taxation due to inheritance, if any?

Family that I was helping, had to file ITR for deceased. What I understand is , heirs are liable of all tax and last IT return has to be filed by them.

There is no tax on heirs per-se. But financial accounts that are transferred will start contributing to TDS.

[rm_arjuna]

How about properties registered in wife's name ( homemaker without substantial income source), can those be included in the will by husband . Also have heard that Mother has equal right in property / monies at banks along with wife and NOC is mandatory to transfer or register in wife's name inspite of will .

[NetfreakBombay]

Originally Posted by rm_arjuna

Mother has equal right in property / monies at banks along with wife and NOC is mandatory to transfer or register in wife's name inspite of will .

Since Class 1 heirs can challenge the will on various grounds, this exposes banks to risks. Asking for indemnity bonds, NOCs are ways to reduce this risk. Typically indemnity / NOCs from "Class 1" heirs is asked for.

[Ragavsr]

While creating a will , ensure that all transfer of property / assets occur after the person has deceased. We come across enough examples of children abandoning their parents after transferring property to their names.

Also, what if the person ends up selling an asset mentioned in the will ? Would he /she have to re write the will and redistribute assets ?

[GTO]

If you want a totally non-fuss transfer of assets, one can "gift" his / her assets to children. Of course, elders aren't always keen on this as technically, the children can then throw them out of the house. Gifting is non-reversible, more solid than a will and can be subject to stamp duties (Maharashtra had temporarily waived the stamp duty off last year). Gifting is more or less a done deal - almost like a sale deed - and is subject to far lesser litigation than a will.

For wills, here are other best practices to keep in mind:

- Registration. Not required, but it does help.

- Take a video of the person reading out his / her will after registration. This can help you in court if contested. Keep a news channel with some current affair on a TV in the background (to show that date is accurate).

- A supporting doctor's certificate proving that the person is of sound mind.

- Frankly, the will and beneficiaries should not be kept a secret. At least that's what I believe. To ensure a fair division of assets, parents should openly discuss the will with their children (unless of course, there is friction already).

[N.A.GTC]

Originally Posted by GTO

If you want a totally non-fuss transfer of assets, one can "gift" his / her assets to children. Of course, elders aren't always keen on this as technically, the children can then throw them out of the house.

Responding specifically to the part in bold: the Maintenance and Welfare of Parents and Senior Citizens Act, 2007 states that if a senior citizen gifts any property to their children, and the children evict or even mistreat them, they are entitled to have the gift revoked - they just need to state in the will that the children have the responsibility of taking care of their parents. This is the simplified version.

This, in my opinion, takes care of the problem you mentioned.

Plus, all such disputes are to be decided not by the courts but by the District Magistrate/Sub-Divisional Magistrate (depending on which state you are in) and is quicker.

Section 23. Transfer of property to be void in certain circumstances
(1) Where any senior citizen who, after the commencement of this Act, has transferred by way of gift or otherwise, his property, subject to the condition that the transferee shall provide the basic amenities and basic physical needs to the transferor and such transferee refuses or fails to provide such amenities and physical needs, the said transfer of property shall be deemed to have been made by fraud or coercion or under undue influence and shall at the option of the transferor be declared void by the Tribunal.

[PaddleShifter]

Gifting vs inheriting:

I am of the opinion that gifting is always better than inheriting. As an inherited property is seen in different manner for subsequent generations vs gifting that becomes a “self acquired property”. A person has greater right over a self acquired property in a few tricky situations, the most important ones being false 498A cases.

Citing a hypothetical example:

Person A gets a home through inheritance from parents. His son “X” in few years or say sometime in future emters into a matrimonial relation with a girl who files a false DV/498A on X. Since the house in which A and X are living is an inherited one, there will be issues for these two as compared to a self acquired one. As per what I am seeing, even self acquired ones are being eyed upon recently by the “system”.

[SolidusSnake]

The most important thing in a Will is the witness. No matter how fool proof the will has been made, in a litigation, the burden of proving the will is on the propounder of the will and it can only be proved through the witness. So no matter whether will is registered or not, always choose witness carefully, the one whom you can rely upon, that he/ she will come to the court and depose in your favour. If the witness turns hostile, then it is almost an impossible task to prove the will.

[SPIKE ARRESTOR]

There is no format for preparing a will, the will can be prepared in any language of your choice, the will can be changed / modified as many times as you wish (change of circumstances). This means, anyone who can read and write can prepare his/her will without taking the services of a lawyer.

I'm in my mid 30's, I gifted myself a will last year . My parents and relatives were wondering what am I up to, but understood my proactive nature, when I explained to them the importance of a will. I went ahead and also got it registered.

Originally Posted by NetfreakBombay

I would highlight that this can easily become a criminal matter. It can be treated as "अमानत में खयानत"*.


*Not sure about equivalent English legal term.

Misappropriation leading to criminal breach of trust (IPC 405 / 406)

Spike

[narasimhan.iyer]

Another financial matter of extreme importance, and tbhp continues to amaze me regarding the vast repertoire of knowledge items it is got in stock.

Off late I came across this corporate site, with lot of information regarding wills, including blog posts, and checklists. Posting for everyone's benefit.

PS: This is not posted for any kind of solicitation, and I am not related to the corporate either. There are many other corporates that offer similar services.

[Raghu M]

This is on top of my agenda post Covid. I have been pretty scared right from day 1 and looking at how it has unfolded has left me shattered to say the least. While writing a will is very helpful, we would be doing more help by actually leaving something behind for our loved ones. When I was a kid, my family was hard hit by financial woes. The constant fear of being cheated or losing money on things that are not necessary has led me to become a very thoughtful spender.

My first thoughts immediately after the pandemic was in full swing:

1. Do I have myself and family covered (health insurance) if anything untoward happens? - Yes
2. What are my life insurance covers, are they sufficient to take care of my wife and kids? - No
Action plan - took a big term insurance policy which has a big cover. Accidental death gives 2+ benefit. Will give a huge relief to the family and will also help in writing off my housing loans and still leave a big reserve of cash
3. Do I have my wife as nominees for my properties? - Yes/No
Yes for mutual funds and bank deposits, No for houses/real estate investments
Action plan - already notified her about all the details, will needs to be registered marking her as nominee
5. Any loans that will trouble my wife later? - Yes (housing loans) But it will be taken care once she gets the term insurance cover amount
6. Any assets that can be sold at a later date for a premium value? - Yes
Started looking at some good investment options as soon as Covid hit. Got some really good deals and invested right away (Nov 2020).
7. Do I have a proper Will that is registered? - No
Action plan - get a will registered immediately after things open up (top priority)

My thoughts are simple, in case something untoward happens, our loved ones should be able to lead a peaceful life. I think the liabilities vs. assets calculation is the best way to look at things. Also, the ease of liquidating assets or being able to convert to cash quickly is of high importance. I have given my wife details of all the investments, small real estate investments and the housing loans that are being paid. I think it should pretty much cover everything in case I do not make it to the other side during the battle. Stay safe everyone!