Jigar M. Patel
International Tax Attorney
With a view to ensure that his or her legal heirs have no problem in receiving the various properties allocated to them, whether immovable or movable, listed hereunder are some important practical aspects, every individual should keep in mind in regard to the properties or investments owned by him or her.
Hold investments jointly or with nomination
To facilitate the smooth operation and passing over of investments, it must be ensured that all bank accounts, fixed deposits, shares, securities, bonds, debentures, etc. held by an investor are not held in his or her single name, but held jointly with any close member of his family. Even where a Will has been executed, but if the property is in the single name of the deceased, it becomes necessary to obtain a Probate or Succession Certificate from a Civil Court, the procedure for which is not only expensive, but also time consuming.
In respect of investments like Life Insurance Policies, PPF accounts, etc. which do not have the facility of joint holding, it is important that an individual makes a ‘nomination’ in favour of any close member of his family.
Nominee does not enjoy automatic legal ownership
Both in regard to maintaining a joint holding, as well as making a nomination, it should be borne in mind that the joint holder or the nominee does not automatically become the legal owner of the property of the deceased. The joint holder would enjoy the privilege of withdrawing the investment and the nominee would be entitled to receive the proceeds of the investment. However, both the joint holder or the nominee, if not directed to legally receive the property as a beneficiary under the Will, would be accountable to the executors of the estate of the deceased, to hand over the proceeds of the investment, which would ultimately be required to be allocated in accordance with the terms of the Will.
Advisable for NRIs to execute separate Will for Indian assets
Non-Resident Indians (NRIs) often face complex legal and financial challenges when managing assets across multiple countries. One crucial aspect of estate planning for NRIs is deciding whether to create separate Wills for assets located in different countries, considering the practicalities of executing Wills across international borders.
It would be advisable for NRIs to consider making a separate Will for their assets and properties in India, which can help avoid lengthy legal processes and potential disputes among beneficiaries and facilitate smooth remittance of the funds to their home country.
Protecting interest of Spouse through Mutual Will
While drafting a Will, it is important to ensure that the interest of your spouse is well protected. One of the practical ways to do the same is through the execution of Mutual Wills, whereby upon the death of an individual, his or her entire estate is transferred in favour of his or her spouse (except such assets which are desired to be distributed to specific members of the family), thereby ensuring full right of enjoyment during the lifetime of the spouse. The Will should clarify about the devolution of such assets bequeathed to the spouse on his or her passing away. This ensures a smooth transition of the estate, while protecting the interest of one’s spouse during his or her lifetime.
