Making a Will : What Every Investor need to know

Here is something most people don’t think about. If you were to pass away tomorrow without a will, the government would decide who gets your money, your house, and your jewellery. Not your spouse. Not your parents. The government. That’s the reality of dying intestate which simply means dying without a valid will. And yet, a surprisingly large number of Indians, including many high net-worth individuals, don’t have one. Making a will is a bit like getting insurance for your car. You hope you never need it, but when the time comes, you’ll be glad it’s there. The difference is that a will doesn’t protect you it protects the people you love the most. So let’s walk through what you need to know to get started.

What Exactly Is a Will?

A will is a legal document that spells out how your assets should be distributed after your death. It names the people (called beneficiaries) who will receive your property, money, investments, and other belongings. It can also name a guardian for your minor children, which is something many young parents overlook.

In India, wills are governed by the Indian Succession Act, 1925, for most communities. The law is fairly straightforward: any person of sound mind who is above 18 years of age can make a will. You don’t need a lawyer to draft one, though getting professional help is a smart move if your estate is even slightly complicated.

Why Should You Make a Will?

Think about the average Indian family. There’s often a mix of self-acquired property, ancestral property, bank accounts, mutual funds, insurance policies, gold, and maybe a flat or two. Now imagine trying to sort all of that out without clear instructions from the person who owned it. That’s exactly what happens when someone dies without a will.

Here are the key reasons you should make one:

1. You decide who gets what. Without Making a will, the succession laws of your religion determine the distribution. This may not match your wishes at all. For example, you might want to leave a larger share to a child who is financially dependent on you, but the law may split it equally.

2. You avoid family disputes. We’ve all heard stories of families torn apart over property. A clear will reduces ambiguity and gives everyone a definitive answer. It’s not a guarantee against disputes, but it’s your best line of defence.

3. You speed up the transfer process. Without a will, your heirs will need to obtain a succession certificate or legal heir certificate from the court. This can take months or even years. A registered will makes things significantly smoother.

4. You can appoint a guardian for your children. If both parents pass away, the will can name who should take care of minor children. Without this, the court decides and the court doesn’t know your family the way you do.

What Should a Will Include?

A good will doesn’t need to be a 50-page legal document. But it does need to cover certain basics clearly. Here’s what to include:

1. Your full name, address, and a declaration that this is your last will and testament, made voluntarily and with a sound mind.

2. A complete list of your assets immovable property, bank accounts, fixed deposits, mutual funds, shares, insurance policies, gold, vehicles, and any other valuables.

3. Clear identification of your beneficiaries who gets what. Be specific. Instead of saying “my property goes to my children,” say “Flat No. 301, ABC Apartments, Mumbai, goes to my daughter Priya.”

4. The name of an executor this is the person who will carry out the instructions in your will. Choose someone you trust, and make sure they know about it beforehand.

5. Your signature and the signatures of at least two witnesses. The witnesses should not be beneficiaries in the will.

Registered vs. Unregistered Will: What’s the Difference?

This is a question that confuses many people. In India, Making a will does not have to be registered to be legally valid. An unregistered will, if properly signed and witnessed, holds up in court. But and this is a big but a registered will carries more weight. It’s harder to challenge because the sub-registrar’s office keeps a record of it. Registration also helps establish that the person making the will was of sound mind at the time.

Registering a will is simple. You visit the local sub-registrar’s office with two witnesses, pay a small fee, and the will is recorded. The original stays with you. Think of it as adding an extra layer of protection like putting your valuables in a bank locker instead of under your mattress.

Common Mistakes to Avoid

Even well-intentioned wills can create problems if they’re not done right. Here are some mistakes to watch out for:

1. Being vague about assets. Don’t just write “all my property.” List each asset clearly with identifying details like account numbers, addresses, and folio numbers.

2. Not updating the will. Life changes. You buy new property, sell old investments, or have another child. Your will should reflect your current situation. A will written ten years ago may no longer represent your wishes.

3. Forgetting about jointly held assets. If you hold a property jointly with your spouse, your will can only cover your share. Many people forget this and end up creating confusion.

4. Ignoring nomination vs. will. This is a common misunderstanding. A nominee on your bank account or insurance policy is just a custodian, not the final owner. The will overrides a nomination. So if your will says one thing and your nomination says another, the will wins but the mismatch will cause delays.

5. Not informing the executor. Your executor needs to know the will exists and where it is stored. A will that nobody can find is almost as bad as no will at all.

A Note on Hindu Undivided Family (HUF) and Ancestral Property

If you belong to a Hindu Undivided Family, you should know that ancestral property (property inherited up to four generations) cannot be willed away as per your wishes. It is governed by the rules of coparcenary under Hindu law. Only your self-acquired property can be distributed through a will. This distinction trips up many people, so it’s worth getting clarity on what qualifies as self-acquired and what is ancestral before you sit down to write your will.

To Sum up,Making a will is one of those tasks that feels unnecessary until it becomes urgent and by then, it’s too late. It doesn’t matter whether you’re 30 or 60, whether your estate is worth ten lakhs or ten crores. A will gives you control over what happens to your hard-earned wealth after you’re gone. It’s an act of care for your family, not a morbid exercise.

So here’s what you can do right now: make a list of all your assets every bank account, every mutual fund, every property. Then decide who should get what. Talk to your family about it. And if your estate involves multiple properties or complex holdings, consult a lawyer who specialises in estate planning. A well-drafted will today can save your family a world of trouble tomorrow.