Will Requirements in India: Despite the widespread consensus that having a Will in place facilitates the efficient transfer of assets to family members, a sizable portion of the population chooses not to do so. This is due to a multitude of factors. Some people put off creating a will because they find death to be an unpleasant thought. For some, it can just be a matter of putting things off. Nonetheless, a lot of people put off doing so due to the laborious process of acquiring data. Here’s a methodical approach to taking.
Immediate Family Information
The testator, or the person drafting the will, must include all personal information about themselves and their immediate family in the will. Hence, begin with the information that is the simplest to understand: your name, address, and each member of your immediate family’s unique identification number. Details about the beneficiary—if not a member of the beneficiary’s immediate family—will also be needed in certain situations.
Relevant Data for Inclusion
First things first, it’s critical to understand what kind of data the Will, will want. Generally, it is not necessary to record the investment’s valuation. Furthermore, it is not necessary to record information like the folio number for mutual funds, the fixed deposit number, or any other number that changes frequently as a result of transactions or maturity.
Rather, unique and constant numbers like insurance numbers, savings account numbers, demat account numbers, and client IDs should be mentioned in the will. Additionally, the identities of joint holders of accounts or investments should be recorded.
Categorization of Information
Gathering this information for the Will may be a nightmare if consolidated data for an individual’s numerous accounts and investments isn’t readily available. Thus, it could be helpful to classify and tackle these exercises appropriately:
Mutual Funds & Shares: Mutual fund folios and demat account numbers can be obtained from NSDL’s Common Account Services (CAS), which compiles all mutual fund and demat accounts with transaction and holding details. Again, the folio number is subject to change, so a better approach to handle this would be to just list all the mutual funds associated with your PAN and include the most recent CAS statement for your records, rather than trying to record every single folio number.
Insurance and Other Financial Investments: The majority of these are tangible. The name of the organisation that issued each unique identification number, such as the folio, insurance, account, etc., should be included in the will along with it.
Immovable Properties: Immovable property is frequently a person’s most valued asset. The full address, plot/survey number, names of all joint owners, and acreage (particularly in the case of land) should all be accurately recorded for these assets. A description of the object and its geographical location should be included for other tangible assets like paintings and jewellery.
Residual Assets: Certain assets might be overlooked even with the utmost caution, or someone could acquire or inherit certain assets after the Will is written. The category of residual assets includes all assets not specifically listed in the Will. If such residual assets are not specifically bequeathed in a well-drafted Will, they may pass to the legal heirs in accordance with the rules of intestate succession.