The feeling of knowing your tomorrow is secured brings a lot of relief. Fortune favors those who are prepared, and writing a will is a vital step in the life preparedness drill to safeguard the interest of your loved ones.

Let’s read the story of Mr. Raghav Malhotra who seeks the peace that comes with being prepared.

Raghav is a successful investment banker who has built a diverse portfolio that spans various asset classes such as stocks, mutual funds, bonds, and alternative investments. He has thoughtfully named his wife and sister as nominees to ensure their financial security across the various asset classes he owns. He is also a proud owner of two beautiful flats in Navi Mumbai.  Recognizing the importance of comprehensive financial planning, he has taken the proactive step of drafting a will. Raghav’s commitment to securing his assets, coupled with his thoughtful consideration of his family’s financial future, showcases his responsible approach to wealth management.

Don’t you want to feel the tranquility of securing your assets for tomorrow?

Deep down, you yearn to experience the same sense of security that Raghav does, but here’s the brass track: writing a will is remarkably straightforward once you decide to do so. This blog aims to demonstrate just how effortless it is to write a will. You will get to know the role played by the nominee in the process of writing a will and get a clear distinction between a nominee and a legal heir.

Understanding nomination and how it is different from a will

Nomination is typically associated with specific assets, such as bank accounts, insurance policies, treasury bills, or any alternative investments. It allows you to specify a nominee who will have the legal right to distribute those assets. However, the nomination will not include assets such as real estate or your personal belongings including the physical gold jewelry, which you will need to include in a will.

A will may encompass all assets owned by you, including bank accounts, insurance policies, immovable property, valuable possessions, and financial investments like corporate bonds or commercial property investments. It provides a comprehensive framework for the distribution of your assets and allows you to designate specific beneficiaries, outline any conditions or restrictions, and appoint an executor of your choice to oversee the execution of specific wishes.

The contrast between a nominee and a legal heir

A nominee is an individual chosen by you to act on your behalf in matters related to assets or investments. Typically, a nomination is done for financial accounts, insurance policies, or businesses that you hold. It’s crucial to note that being a nominee doesn’t automatically make someone the legal owner of the assets. Instead, the nominee acts as a trustee or custodian until the distribution of assets is determined. Their role primarily revolves around facilitating the transfer of assets to the rightful beneficiaries according to your wish.

On the other hand, a legal heir is entitled to inherit your assets and properties based on the applicable laws of inheritance. These laws, such as interstate succession or the terms outlined in a valid will, determine who qualifies as a legal heir. Depending on the specific laws of the jurisdiction, legal heirs typically include immediate family members like spouses, children, parents, or siblings. The legal system ensures a fair distribution of assets among the rightful heirs when there is no valid will or as per the provisions mentioned in the law.

Demystifying the nomination of loved ones

When planning your asset transfer, it’s important to consider nominating a loved one. By designating them as a nominee, you provide them with the legal authority to distribute your assets according to your wishes.  A loved one as a nominee will ensure that someone you know is directly involved in the process of asset transfer and has the responsibility of safeguarding your assets. It serves as a preventive measure against banks or the government acquiring unclaimed assets. Hence nominating a loved one establishes a sense of trust and allows for a smoother transition of your assets, providing peace of mind for both you and your beneficiaries.

Who has the final authority?

According to the Indian judiciary system, the right of the legal heir supersedes the right of a nominee. This means that your legal heir will ultimately have the final say over your assets and properties after you. Their entitlement is determined by the applicable laws of inheritance and the provisions outlined in a valid will. A nominee is like an agent who will look after your assets until the time they can be passed on to the legal heirs designated in your will. While the nominee may have temporary control or possession of the assets, it’s crucial to recognize that the legal heir has the ultimate rights and ownership as defined by the legal framework.

Who should prioritize writing a will?

The truth is anyone can write a will, but there are specific circumstances that make it a matter of priority to have one prepared. Let’s explore a few situational circumstances..

Senior Citizens:  If you are a senior citizen, it’s crucial to write a will. It allows you to clearly outline your wishes for the distribution of your assets, and any potential conflicts can be avoided. Writing a will provides you with peace of mind and ensures that your assets are distributed according to your intentions.

Parents with Minor Children: If you have minor children, writing a will becomes essential. It enables you to designate a guardian who will take care of your children in the unfortunate event when you are not around. By specifying your wishes in a will, you can ensure that your children are in the care of someone you trust and who shares your values.

Complex Business Families:  If you are part of a complex business family, or a Hindu Undivided Family (HUF) structure, writing a will becomes a priority. It allows you to plan for the smooth transfer of assets and ensures the smooth continuity of your family business. By addressing potential complexities through a will, you can prevent disputes and safeguard the interests of your family members.

People with Specific Distribution Wishes: If you have specific wishes regarding the distribution of your assets, it is important to write a will. Whether you want to support a charitable cause, provide for a beloved pet, or have unequal distribution among beneficiaries, a will allows you to clearly express your intentions. By documenting your specific distribution wishes, you ensure that they are legally binding and follow your passing.

Conclusion,

A will is a comprehensive document that outlines your wishes for the distribution of your assets, and it is essential to keep it ready even if you are in your 30s or later regardless of your health condition. Writing a will is relatively easy once you aggregate and list all your assets. Following which, you can just draft the will on a regular piece of paper or utilize electronic will creation platforms such as Willjini and ezylegal documenting distribution of assets to your loved ones. It is advisable to include a minimum of two witnesses to the will, who can be individuals like lawyers, doctors, friends, or family members.

By making diligent efforts in writing a will, you not only safeguard your assets but also find peace while ensuring a solid foundation for your family’s prosperity.