How to make your own Will

The entire nation watched as the Ambani brothers split their father's wealth. While speculation continues about what went wrong, there is no denying the fact that the late Dhirubhai Ambani would have done well to leave a will.

Making a will is sensible because it leaves you to decide how your wealth is used. But unfortunately, most Indians simply forget to make a will.

Why make a Will?

Key points of laws of inheritance If there is no will, the property will devolve according to the personal law of the deceased According to the Indian Succession Act if he was a Hindu, Buddhist, Sikh, Jains or Muhammadan, the legal heirs will have to make an application to the court The legal heirs would have to prove their relationship with the deceased and comply with several documentation The court may grant letters of administration to any person who, according to the rules for distribution of the estate, would be entitled to the whole or any part of such deceased's estate

If you die intestate (that is, without making a will), your family will have to follow certain 'laws of succession,' in deciding how to split your assets. It is a misconception to believe that all the estate is automatically passed on to the spouse.

Children and relatives can also stake claim to the property. Laws of inheritance and succession are diverse and complicated.

This kind of division of assets is an expensive business as your family would have to hire the services of a lawyer and all the costs will be incurred out of your estate. So in effect, your family will get a diminished share.

Key points to remember while making a Will

The process of making a will is very simple. It requires no stamp duty or registration, although most experts advice that a will must be registered, so that it is in safe custody.

However, there are certain traps that you should watch out for. Says chartered accountant Vinay Singh, "One common mistake that people make is failing to appoint witnesses and trustworthy executors younger than themselves. In case of Hindus, another common mistake is the failure to state if the property is inherited or not."

The question of inheritance becomes important because no ancestral property can be assigned to any person. All rights on inherited property are acquired by birth.

A Will supercedes nominations

How to make a will? No prescribed form for a Will; only needs to be signed and attested Can be in any language; no technical words need to be used Two witnesses must attest a Will; one preferably a doctor They should sign in the presence of each other and the person making the Will In India, the registration of Wills is not compulsory The Will should provide for the appointment of executors, though not mandatory No stamp duty is required to be paid for executing a Will

But if you have made nominations, does a will become essential? 34-year-old banker Sanjay Sinha asks a valid question, "I have a number of investments in shares, bank deposits, mutual fund, insurance policies, etc. For all these investments, I have assigned a nominee. So is it necessary to make a Will for the same?"

In the eyes of the law, a nominee is a trustee and he need not necessarily be a beneficiary to a will. Says Singh, "The nominee is merely a caretaker and the right to the property passes by will or if there is no will, under the personal law of the deceased."

This means that if there is a will, the nominee will only hold the assets as a caretaker trustee for the beneficiary. The nominee will be legally bound to transfer the nominated property to the beneficiary of the will. If there is no will, he will have to transfer to the legal heirs. So ideally, if a will is made, it would be better to name the nominee as the beneficiary to ensure that the distribution is smooth and efficient

For more on succession planning, click here.