In India, succession planning has traditionally been the domain of the elite — mostly industrialists and businessmen — although most of them die without making a will. This usually results in family squabbles that can go on for generations.
“A will is a defence mechanism for those who wish to ensure their family is secure in any eventuality,” explains human rights lawyer N.D. Pancholi, who has prepared wills for several clients. “Many of us have property with no clear inheritors. This could result in succession disputes later.”
However, he points out that even in cases where the deceased has a will, families often approach the courts. “This could be due to several reasons, from lacunae [a gap] in the document to making more than one will. So, a will is admissible only when approved by the court.”
Emphasising the need to write a will, HDFC Securities says on its website, “If you don’t write a will, everything you own will be allocated in a standard way as defined by succession laws — which may not be in sync with your preference.
“If one takes an insurance policy at a young age to provide financial support to the family in case of an untimely death, why not make a will, which is an instruction in writing to the family on how to distribute the insurance claim or other properties/assets.”
All assets apply
The company advocates including all single and joint properties, wealth, assets, loans and movable property such as cash, jewellery, fixed deposits, bank accounts, insurance policies and vehicles, as well as immovable properties such as land and buildings.
“It is advisable to store the will in a safe and secure location where it cannot be tampered with and can be easily found by your family members after your death. It may be kept in a locker, in the safe custody of a trusted person, or with professionals like a lawyer, who will take the necessary steps to inform the executor after your death. Various banks and financial institutions offer custodian services for the safekeeping of wills.”
According to HDFC, it is important to note that different religions follow different laws when it comes to wills.
Insiders say succession planning is gaining momentum as e-will writing services make the process simpler and cheaper, so creating one from the Middle East is a plausible solution, with some of the best legal experts creating the will at a fraction of the cost. There are currently three main players — a joint venture of the National Securities Depository and Mumbai-based Warmond Trustees & Executors, HDFC Securities and the State Bank of India.
Web-based will writing
Gokul Das, Managing Director and CEO of Warmond Trustees & Executors, says there’s a lot of interest in online wills from Indians based in the UAE. “NRIs have both onshore and offshore pools of assets,” he explains. “These could be subject to multiple regulations based on the domicile of assets.
“A domicile is essential when you draft a will and it is important that you write separate wills that are held in one place; this makes the process more efficient. A person could have a separate will addressing his assets in the UAE in the will that is drawn up in India.”
Das says an online will is more applicable to the masses than ultra-high-net-worth individuals, as the process is more complicated in that segment. “An important factor NRIs need to consider when writing a will is to approach it with a lot of thought, as they will not be around at the time the transition of assets happens. The wording should be captured to ensure that their objectives are truly met.”
