Articles

Ever wondered what happens to your wealth after your lifetime. Well one way of looking at it, is to be philosophical and leave it to the almighty (any which ways how would you be concerned with material things when you are not around!!). Other possibility is to go a step ahead during your lifetime and document your intentions as to the manner of wealth distribution. This document of your intention is termed as a “Will”. We have brought out an easy understanding of the concept involving Will.

What is a Will?

WILL is a legal declaration of the intention of a person with respect to his/her property, which he/she desires to take effect after his/her death. It is a document expressing a person's wish concerning how his/her property is to be distributed upon his/her death and would include the names of the people who would benefit from it.
Property or possessions covered in a will includes all assets, such as your home, land, vehicles, bank accounts, benefits of insurance policies, furniture, boat, investments such as shares, personal jewellery, artwork, and so on.

Why you should make a Will

We have provided an illustration to bring out the importance and reason for creating a will.
Ramanujam after a successful business career has built an impressive wealth portfolio. He has a mother, wife & two sons and they reside in a large house valued at Rs. 5 Crores. Unfortunately and suddenly the family suffers a setback in terms of his untimely death. He had died intestate (i.e. without creation of a Will) and accordingly the disposal of his wealth amongst his heirs is uncertain.
All heirs involved, agree that the entire wealth has to be distributed equally amongst them. The sons however also insist on the house to be sold and the proceeds to be distributed equally. In such a circumstance, Ramanujam’s mother & wife are left with no option but to find another place of residence.
In the above case, in case Ramanujam had the foresight to get a will done with specific demarcation of what can be sold and in what manner, possibly the ladies might have avoided the entire episode of having to find alternative residence.
The reasons for creating a will cannot be over emphasized and we have briefly listed some quick reasons:
•    To protect and secure the financial future of your loved ones
•    Smooth transfer of assets amongst people whom you choose
•    To avoid conflict amongst the legal heirs
•    In case of minor children, to nominate guardians and make arrangements for their upkeep & education
•    In case you contemplate on second marriage
•    In case you wish to donate a portion of your wealth to charity

When Should You Make A Will?

A Will should be made while the maker is in good health, free from emotional stress. A prudent person does not wait for a catastrophe or other compelling reason before making a decision. If you have children and you and your spouse die, do you want to name the guardian of your children, or do you want the court to appoint one? If you do not have a Will, the court, by law, will appoint the guardian.
What is a Valid Will?
A valid Will is a Will that is accepted by the court and put into effect by the court granting what is known as probate.
A valid Will must have the following features:
•    The Will must be made by a person who should be fully competent, as much as he should not be a minor and should not person of unsound mind.
•    It must be in writing - handwritten, typed or printed and has to state that the person executing the same is making it out of his/her own free will and in a sound disposing state of mind.
•    It must be signed with your signature at the end of the document.
•    It must be witnessed and attested by at least two other people present at the time of signing.
If your Will is not made in this/her manner then the court may not accept it and it would be unenforceable (the courts will not enforce it).

Whether A Will Can Be Changed?

A person may change a Will as often as he or she desires. Changes are made by either executing a new Will which revokes or replaces a prior Will or by executing a legal addition or amendment called a “Codicil”. When a Codicil to a Will is made, just as when the original Will was created, certain legal and statutory requirements must be met for the document to be effective. If you desire to change your Will, always consult a lawyer in advance.

When Does One Need to Change A Will?

Make sure your will reflects your current wishes and situation.
Experience teaches us that the only constant in life is change. But we don't always keep up with the important tasks -- such as updating wills and other important legal documents -- that should accompany big changes in our lives. A Will should always be tailored to a person’s current family and financial situation, not the one faced five years ago or maybe even just last year.
Here are some events that should nudge a person towards making a new will and reviewing beneficiary designations made for insurance policies, bank accounts, and retirement accounts.
•    Getting married.  A spouse is legally entitled to claim a percentage of your property after you die, unless you have a written agreement to the contrary. If you don't want to leave at least half of your property to your spouse, see a lawyer.
•    Unmarried, but have a new partner. Without a will or alternate estate plan, such as a living trust, a live in partner will inherit nothing. To avoid this/her, one has to make a Will.
•    Getting divorced. One should make a new will after a divorce so as to clarify their previous spouses claim in their property.
•    Having a new baby. Person has to make a new will to name a personal guardian for the new little one.
•    Having new stepchildren. Unless a person legally adopts stepchildren, they have no right to inherit from their step parent in most situations. If the person wants to leave them a share of his/her or her property, then he or she should adjust the Will.
•    On acquiring or disposing of substantial assets, such as a home.
•    The person may change mind about who should inherit a significant portion of his/her or her property.

It is always a good idea to have a Will. Will is a legal document that lets us decide how our property and estate has to be distributed after our death. No one is ever aware as to when death will occur and it makes perfect sense to be well prepared. We might not be quite rich, yet we would definitely have personal preferences as to who are the people must receive our personal belongings