Skip to main content

Will your wealth to pass it on smoothly

YOU think you won't die early and even if you do, your property and wealth will pass on to your spouse.

But this is not true. Depending upon the law under which your marriage comes, your children and relatives can also claim to your property.

If a person does not leave a will, then his property and wealth is governed by his personal law. For example, according to the Hindu Succession Act, a person's property is to be distributed equally among his first-degree relations — wife, children and parents. If the person does not have first-degree relatives, the property is distributed among second degree relatives (brothers and sisters.

However, the distribution is a cumbersome process as it would require that the property be sold off and the proceeds be then distributed equally among the beneficiaries. Also this could lead to disputes among beneficiaries.

Therefore, it's advisable to prepare your will to ensure that your wishes with respect to your estate are followed after your death.

In legal parlance, a will is defined as 'the legal declaration of the intention of the testator, with respect to his property, which he desires to be carried into effect after his death'.

How to write your will?

Ø       The process of making a will is simple. You can write your will on a plain paper in your own handwriting or type it.

Ø      You do not require stamp duty or registration, although most experts advise that a will must be registered to ensure its legality. A registered will gets precedence over an unregistered one.

Ø       Start with declaring in the first paragraph that you are making the will in your full senses and without any kind of pressure.

Ø       Make a list of all your movable and immovable property. Movable properties are your bank fixed deposits, cash, jewellery, shares, partnership shares, mutual fun ds, insurance and postal investments. Immovable property is your house, land and all the real estate properties that you own.

Ø       State the name of the person who should own each of the assets after your death.

Ø       You can distribute the assets to more than one individual.

Ø      If you are declaring that your assets go to a minor then you will have to appoint a custodian to take care of your assets till the minor reaches adulthood.

Ø       Once you have completed, you need to sign the will in the presence of two witnesses. One of them should be a doctor.

Ø       After your signature, the two witnesses should sign stating that you are in proper state of mind while writing the will.

Ø       State the date, time and place at the bottom of the will.

Ø       Appoint a trustworthy person who is unlikely to die before you as the executor.
An executor is your representative who will execute the contents of the will after your death.

Store the will in a safe place preferably in a bank locker and inform your relatives about the place where it has been stored.

 

Popular posts from this blog

All about "Derivatives"

What are derivatives? Derivatives are financial instruments, which as the name suggests, derive their value from another asset — called the underlying. What are the typical underlying assets? Any asset, whose price is dynamic, probably has a derivative contract today. The most popular ones being stocks, indices, precious metals, commodities, agro products, currencies, etc. Why were they invented? In an increasingly dynamic world, prices of virtually all assets keep changing, thereby exposing participants to price risks. Hence, derivatives were invented to negate these price fluctuations. For example, a wheat farmer expects to sell his crop at the current price of Rs 10/kg and make profits of Rs 2/kg. But, by the time his crop is ready, the price of wheat may have gone down to Rs 5/kg, making him sell his crop at a loss of Rs 3/kg. In order to avoid this, he may enter into a forward contract, agreeing to sell wheat at Rs 10/ kg, right at the outset. So, even if the price of wheat falls ...

Fortis Mutual Fund

Fortis Mutual Fund, a relatively new player, it is still to prove its case and define its position in the industry. In September 2004, it came onto the scene with a bang - three debt schemes, one MIP and one diversified equity scheme. And investors flocked to it. Going by the standards at that time, it had a great start in terms of garnering money. Mopping up over Rs 2,000 crore in five schemes was not bad at all. The fund house has not been too successful in the equity arena, in terms of assets. Though it has seven equity schemes, it is debt and cash funds that corner the major portion of the assets. Most of the schemes are pretty new, and the two that have been around for a while have a 3-star rating each. The last two were Fortis Sustainable Development (April 2007), which received a rather poor response, and Fortis China India (October 2007). Fortis Flexi Debt has been one of the better performing funds, after a dismal performance in 2005. It currently has a 5-star rating. None ...

ICICI Prudential Balanced Fund

 ICICI Prudential Balanced Fund scheme seeks to generate long-term capital appreciation and current income by investing in a portfolio that is investing in equities and related securities as well as fixed income and money market securities. The approximate allocation to equity would be in the range of 60-80 per cent with a minimum of 51 per cent, and the approximate debt allocation is 40-49 per cent, with a minimum of 20 per cent. An impressive show in the last couple of years has propelled this fund from a three-star to a four-star rating. The fund has traditionally featured a high equity allocation, hovering at well over 70 per cent, which is higher than the allocations of the peers. But in the last one year, the allocation has been moderated from 78-79 per cent levels to 66-67 per cent of the portfolio. ICICI Prudential Balanced Fund appears to practise some degree of tactical allocation based on market valuations. Within equities, well over two-thirds of the allocation is parked i...

Equity investors should track market developments

The stock markets have been volatile over the last few days. They are in a sideways movement and trying to find the bottom after a fall of 20 percent a week ago. The market sentiments are not very positive at the moment and the recent developments are expected to dampen them further. Globally, governments and central banks are trying to cut rates and announce packages to improve business sentiments. These are some of the major developments in the markets last few month: A) Global On the global front, another large US bank went into a financial crisis. The US government took quick measures to avoid the spread negative sentiments in the markets. The US government announced a bail-out package and agreed to shoulder the losses on the bank's risky assets. China announced a large cut in interest rates and reserve ratio to boost the investor sentiments in the markets. Recently, the World Bank announced China's growth rate next year will come down to 7.5 percent. The European ...

Tax Planning: Income tax and Section 80C

In order to encourage savings, the government gives tax breaks on certain financial products under Section 80C of the Income Tax Act. Investments made under such schemes are referred to as 80C investments. Under this section, you can invest a maximum of Rs l lakh and if you are in the highest tax bracket of 30%, you save a tax of Rs 30,000. The various investment options under this section include:   Provident Fund (PF) & Voluntary Provident Fund (VPF) Provident Fund is deducted directly from your salary by your employer. The deducted amount goes into a retirement account along with your employer's contribution. While employer's contribution is exempt from tax, your contribution (i.e., employee's contribution) is counted towards section 80C investments. You can also contribute additional amount through voluntary contributions (VPF). The current rate of interest is 8.5% per annum and interest earned is tax-free. Public Provident Fund (PPF) An account can be opened wi...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now