Importance of a Will in Financial Well Being

Today, uncertainty is everywhere, and we live in a world full of it. It is impossible to predict what will happen tomorrow or in the next hour. It is important to be prepared for the best and the worst. A well-drafted Will not only assures peace of mind but also ensures that the wealth of an individual is legally & smoothly transferred to the next generation. In India, making a Will is an integral component of financial & estate planning, which guarantees certainty and security.

A single unfortunate event can cripple the entire family, and hence, you should start thinking about protecting your assets today. This is of paramount importance to avoid financial stress in your absence and to ensure that your loved ones do not suffer. When a person dies intestate, i.e., without a Will, the estate of such a person passes through the rules of intestate succession as per the provisions of the Indian Succession Act (1925), and this may not be in accordance with the wishes of that individual, which may result in legal complications or disputes among heirs affecting the financial stability of the family.

Let us take one example for better understanding:

Mr. Raj meets with an accident and dies, leaving behind all his property and 2 minor kids. Now, in the absence of a Will, the court under the relevant personal laws will appoint a guardian who will manage his property until the minors attain majority. If Mr. Raj had executed a Will, he would have chosen a guardian whom he trusted to manage the welfare and property of his children. Section 9 of the Hindu Minority and Guardianship Act, 1956, allows the appointment of a testamentary guardian under a Will, enabling the guardian to exercise legal authority for the bringing up of the minors and management of their property, till they attain majority. 

This is only one of the several situations that can happen. You can ensure the economic future of your children or any other family members by taking the appropriate step today and preparing a Will. By making a Will, one can have control over guardianship, the disposition of assets, and continuity of wealth, thereby lessening the possibility of involuntary judicial interference.

In what ways does the Will provide a safeguard against Financial Insecurity?

A Will is more than a legal document; it is a plan for the continuation of your financial legacy. It makes sure that your assets, i.e., your property, your investments, your insurance, are ultimately distributed according to your wishes and not turned over in part to the rather indiscriminate judgment of the laws of succession. Well-prepared Will minimizes the bureaucratic red tape, taxation fatigue, and emotional stress of the surviving family members.

Testamentary succession is recognized by the Indian Succession Act, where the assets are divided according to the Will's provisions and not according to the rules of intestate succession. This enables one to specify the beneficiaries, to protect dependents, and also to leave charitable bequests if so desired. For example, if a man owns real property and mutual funds, the Will can set out who shall inherit the two properties separately. If there is no Will, the law provides for equal division of property, which may or may not be consistent with the views and intentions of the deceased.

Management of Digital Assets Through Will

The digital assets, like cryptocurrencies, social media accounts, email, and digital wallets, form a significant component of the assets of contemporary estates. However, succession laws of India, including the Indian Succession Act, 1925, do not explicitly address the inheritance of digital assets, which gives rise to some legal complexities.

If clear instructions about your digital property are expressly addressed in your Will, it guarantees the property will be retained and distributed properly according to your wishes. You can appoint an executor, who will have the authority to deal with digital assets, stop their losses, and protect your digital legacy. This proactive step helps to avoid difficulties related to access, which arises due to the secrecy of passwords or particular platform restrictions.

With the growth of the value of digital assets, it is now necessary to include these assets in one's estate planning to ensure complete financial security.

Importance of a Will for Financial Security

• If there is no Will, then the distribution of your property may be left to the discretion of the court, which can result in long court battles and increased costs. Having a Will ensures your estate is distributed according to your wishes, thus giving greater financial security and peace of mind to your family.

• Individuals can name an executor to handle their estate, thus ensuring prudent payment of debts and transfer of assets. The powers and responsibilities of the executor are defined in the Indian Succession Act and cover everything from valuations of assets to distribution and tax compliance.

• A Will means that an individual’s financial affairs are run in the way desired by him or her, but it is also a handy vehicle for easing the financial hardships faced by the family of the deceased individual. It is this ‘bridge’ between protecting one’s assets and transferring wealth down the generations, that is to say, it guarantees the continued flow of income and the carrying on of peaceful family life.

Convenient Drafting of Wills by AasaanWill

The Wills drafted by AasaanWill are secure, easy to access, and legally valid, in compliance with the Indian laws of succession. It helps you to prepare valid drafts of Wills which are tailored according to your assets and family structure, and ensures that your Will meets the required formalities of law. After the drafting, all that has to be done is to simply sign the Will in hard copy in the presence of two witnesses, making it a valid legal document. AasaanWill also helps clients with the offline processes like notarization or registration of Wills for enhanced authenticity and long-term record keeping.

AaasaanWill is dedicated to ensuring the financial well-being of your family and loved ones from the comfort of your home and providing guidance at each step of your financial planning and Will-drafting journey. Be wise and make your Will with us — write your Will today and ensure your family has good times tomorrow.

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