LIFE IS UNCERTAIN!- When Your Hard Earned Money Goes Unclaimed

Indians don’t really share information about their finances with their family. In an emergency, they cannot even access your finances without your help. Life is always uncertain, but everyone understood it the most during COVID-19. These two years have prepared us mentally; now we don’t take life for granted. And the most important thing should be to secure the future of your dependents, financially. You should always be prepared and take action on it. 

In India, large amounts of financial assets remain unclaimed across bank accounts, mutual funds, insurance policies, and other investments. This happens when families are not aware of such wealth and assets, or when the information on accounts is not updated after a change in status or on the demise of the investor. Over time, such accounts become dormant and are transferred to funds run by the government, like the Depositor Education and Awareness Fund (DEAF). Such funds are not lost and could be recovered by true owners or heirs, but when there is no clear record or a legal Will to follow, it becomes difficult to claim them.

If you don’t take action, all the money that you have been saving for so long goes unclaimed.  People these days invest heavily in stocks, Mutual funds, crypto, etc. Surprisingly, their families often don’t know about it.  According to ET Wealth’s last year's estimation, over Rs 82,000 crore of investor wealth lies unclaimed in forgotten and lost investments. These types of accounts become dormant or inactive unless they are claimed in due time.

To put things into perspective, unclaimed money across mutual funds, shares, bank deposits, insurance policies, and provident funds continues to build up as families stay unaware of it or do not update nominee details. It is this dormant money that shows the gaps in financial communication and estate planning. Good record keeping and legally valid Wills show families how to protect their hard-earned savings from being unretrievable. Clearly, if families know about their financial investments, this type of situation can be avoided, thus ensuring their future against economic ruin.

Why Unclaimed Money Becomes a Legal Tangle

One of the most significant factors contributing to unclaimed financial assets is a lack of adequate estate planning and a registered Will. In the absence of written instructions, heirs are faced with legal problems- even when eligible. Suppose no nominee has been appointed with respect to the financial assets. In that case, heirs must approach the court for a succession certificate, which may take several months to obtain and which may necessitate complicated documentation.

To illustrate further, let us consider a case where a person with a salary was regularly investing in SIPs and shares but died without leaving proper documentation or a Will. The survivor spouse would have to locate each of the investments, go to the registrar's offices, and file the claim forms for these investments, and in some cases, apply for probate before the money can be obtained. In such cases, we can see the importance of drafting a legal Will, and can save loved ones from future financial and emotional burdens.

How Writing a Will Solves This Problem

Here is the simplest answer: By writing a Will:

• You can list down all your assets as well as information related to them in one place in one document.

• You can divide and allot shares between your loved ones to avoid any disputes among them in the future.

• Likewise, you save your family from a great financial crisis in difficult times, with your smart planning taking care of the rest.

A properly drafted, valid Will outlines wealth distribution properly, avoiding confusion by distinguishing between nominees and beneficiaries. The nominee is merely a temporary custodian for the time being, who holds the assets until the legal heirs are found, while the beneficiaries are the true owners by virtue of the Will. Lots of people have not noticed this difference, which results in their assets remaining unclaimed or stuck in a long court procedure. Drafting a clear Will excludes any ambiguity and guarantees a seamless transfer of the assets without any controversy or delays.

Writing a Will also eliminates confusion in ownership. Will registration provides legal comfort and legitimate distribution of estates without any complications.

Steps to Prevent Your Money from Going Unclaimed

Simple but effective steps to safeguard your money:

• Regularly update contact and nominee details across bank accounts, mutual funds, insurance policies, and other investments to reduce dormant accounts.

• Use digital tools like RBI’s UDGAM portal (launched in 2023) to track dormant deposits across banks using PAN or Voter ID.

• Inform at least one trusted family member or nominee about your major assets, insurance policies, and Will location to enable timely action.

• Seek professional help to draft and register a legally valid Will through expert online platforms like AasaanWill, offering affordable, legally sound services for smooth asset transfer.

These steps empower you to protect your hard-earned money and spare your family financial stress during tough times.

AasaanWill: Your Will-Drafting Ally

AasaanWill, one of the largest online Will-drafting services, makes succession planning as easy as possible by assisting you in creating legally enforceable Wills in the comfort of your own home. With the assistance of professionals, their services guarantee that your assets are well listed and legally secure against any future legal conflicts. Their digital platform allows you to customize your Will, name beneficiaries, and distribute wealth wisely.

Whether an NRI or a working person in India, AasaanWill assures that your wealth reaches the deserving hands. A registered Will drafted by experts eliminates the time-consuming delays in succession and confirms that the transfer of the assets is smooth. AasaanWill provides personal consultations, along with drafting facilities, which makes the art of estate planning into a smooth, inexpensive process, which is required today by every family in these difficult times.

Write your AasaanWill today with us. AasaanWill. Zaroori Hai!