Where there’s a Will

We are familiar with stories of a man working hard all his life and dying without a Will, depriving the fruits of his labor to his near and dear ones. Having no idea about the whereabouts of the money he had earned, the survivors spent life in penury. We are also familiar with stories wherein a distant relative deceives the family of deceased because of some glitches in the Will. These stories are a strict reminder of how important a well-thought-out Will is.

Two important lessons to learn here are: One should always write a Will and one should constantly update the Will with the changes in one's life's circumstances. A lot has been written about the former. So, let us focus on the latter.

Timely update

You have to timely update your Will. If there are major changes in your wealth - acquisition or divestitures - it is better to update such changes. Sometimes the beneficiaries die before the death of the person who has written the Will.

In such circumstances, the Will needs to be updated accordingly. One may also have to update his Will for the appointment of the executor in the case the earlier appointed executor dies.

Unfinished goals

Each one of us has our own financial goals. Some are fulfilled in our lifetime, while some are expected to be achieved after that. These goals may be building a house, son's marriage or granddaughter's education.

Many times these are mentioned in the Will and a provision is made for them. If such goals are already achieved in your lifetime, you should make the necessary changes in your Will.

Sometimes the extent of the funds required to achieve a particular goal may change. In such circumstances, you have to make those additional provisions. For example, two brothers decide to build a house. If one of the brothers die early, the surviving brother may have to contribute more if he wants to share the liability of his deceased brother's family. In such a case, the provision need to be enhanced.

Change in nomination

This may sound really basic. But it becomes a reason of many disputes. Nominate the right person according to your Will.

For example, a person buys an investment before his marriage and appoints his sister as a nominee. After his marriage, he makes a Will and decides to give that investment to his wife after his death. In such a case, it makes sense for that person to remove his sister's name and change the nomination in his wife's favor.

Use of codicil

Many use codicil to effect a change in their Will. For the uninitiated, a codicil is an addition or supplement that explains, modifies, or revokes a Will or part thereof.

For example, Ramesh had two sons and he wanted both of them to share his wealth. However, his younger son died young before getting married. Now Ramesh can use a codicil to transfer his younger son's share to his elder son.

This way of changing the Will is perfectly legal. But be careful. Follow the process - use the right format, mention the objectives and reasons clearly, and more importantly, get two witnesses to sign it. And keep the codicil safe along with the Will.

Mental fitness

As you grow old, you may detect new health problems. While updating a Will after such a discovery, it is prudent to approach a doctor and get a certificate of mental fitness. Such a certificate should be attached to the revised Will or codicil. It comes in handy if the Will is challenged in the court of law, questioning the mental fitness of the person making the Will at the time of updating the document.

For the new members

If there are new entrants in your family and you intend to provide for them, you will have to revise your Will.

For example, a child birth in a family is a happy moment and you may want to provide for the child's education and upbringing.

Many times one ends up investing afresh with a long time frame in mind to achieve these goals.

A revised Will with the appointment of a guardian may help in such a scenario.

Inform your inheritors

A lot of wealth remains in abeyance just because there are no claimants. There are many stories about how crores of rupees are lying around in EPF, PPF, dividend payouts and interest payouts and so on. Who does not want money? Such money remains unclaimed because the claimants are not aware of it.

Locker info

If you have written a Will, you have taken the step in the right direction. You need not share the contents of your Will with your family members. But you must inform them where the Will is kept safely.

A Will is a prudent decision. It will ensure that your loved ones reap the benefits of your lifetime's investments.

Neha Pathak, Head - Trust & Estate Planning, MOPWM

Courtesy  - The Telegraph India