Estate Planning: Wills & Nomination

We all are going to die. It's the only certainty in life. But most Indians die Intestate (without a Will), leaving behind family disputes and legal battles.

Estate Planning is simply deciding: Who gets what when I am gone?

The Myth: "I am not rich enough for a Will"

You have a bank account? A PF account? A scooter? A house? Then you need Estate Planning. It's not for the rich; it's for anyone who cares about their family's peace of mind.

1. Nomination (The First Line of Defense)

Nominee vs Legal Heir: This is the most confused concept.

• Nominee: The "Trustee" or "Caretaker" of the asset. The bank will give the money to the Nominee.
• Legal Heir: The "Owner" of the asset. The Nominee MUST pass the money to the Legal Heir.

Example:

• Husband dies.
• Nominee: Brother.
• Legal Heir: Wife and Kids.
• Result: Bank gives money to Brother. Brother is legally bound to give it to Wife/Kids. If he refuses, Wife has to sue him.

Best Practice: Always make your Legal Heir your Nominee. (e.g., Make your Spouse the nominee).

2. The Will (The Ultimate Document)

A Will is a legal declaration of your intention. It overrides succession laws.

Why Make a Will?

1. Avoid Disputes: "Dad loved me more, so the house is mine!" (Avoid this drama).
2. Protect Vulnerable Heirs: Ensure your minor kids or disabled spouse get their share.
3. Distribute as You Wish: You can give 50% to charity if you want. Without a Will, law decides.

How to Make a Will?

You don't need a lawyer or a stamp paper.

1. Plain Paper: Write it on a plain A4 sheet.
2. Handwritten: Preferably handwritten (shows authenticity).
3. Clear Details: List all assets and who gets what.
4. Two Witnesses: MUST be signed by you and two witnesses (who are not beneficiaries).
5. Doctor's Certificate: Attach a note saying you are of sound mind (optional but recommended for seniors).

Registration: Not mandatory, but highly recommended to avoid challenges.

3. Married Women's Property Act (MWP Act)

For Life Insurance: If you buy a Term Plan, and you die, the money goes to your family. BUT, if you had business loans, the creditors/bank can claim that money!

Solution: Buy policy under MWP Act.

• The money legally belongs ONLY to Wife and Kids.
• Creditors, Banks, and even Government cannot touch it.
• Cost: Free. Just tick "MWP Act" while buying policy.

7-Day Action Plan

Day 1: Check "Nominee" details in all Bank Accounts, FDs, and Mutual Funds. Update if "Mother" is nominee but you are now married.
Day 2: Check Nominee in EPF (UAN portal).
Day 3: List all your assets in an Excel sheet (Accounts, Passwords, Locker keys).
Day 4: Share this "Asset Sheet" location with your spouse/parents.
Day 5: Draft a simple Will on a piece of paper. "I, [Name], bequeath my flat to..."
Day 6: Get two friends to witness your signature on the Will.
Day 7: Keep the Will in a safe place (Locker) and tell your executor where it is.

Quiz

💡 Final Wisdom: Estate planning is not about death; it's about love. It's the final act of care you perform for your family.