I am a 57-year-old man in India currently finalising my estate planning to ensure a smooth transfer of assets to my children and to avoid future disputes. I’ve consulted multiple friends and colleagues to understand the key documents needed for a sound estate plan. How should I approach this?
– Name witheld on request
Effective estate planning goes beyond simply drafting a will. It involves ensuring that one’s assets, property, and wealth are transferred according to their wishes, within the framework of Indian law—while also minimising stress, ambiguity, and conflict for loved ones.
Here are the essential components to consider when putting together an estate plan in India:
Drafting a will
A will is typically the cornerstone of any estate plan. It is a legal declaration that specifies how your assets will be distributed after your death. A well-drafted will should be clear, up to date, and ideally signed in the presence of two witnesses. While registration is not mandatory, doing so can help reduce the chances of disputes over its authenticity.
A will should cover most, if not all, of your self-acquired assets and can be revised over time to reflect changing circumstances. A valid will ensures that your assets are passed on according to your wishes, rather than by default under intestate succession laws.
Nomination forms
Nominations help facilitate the smooth transfer of specific financial assets—such as bank deposits, insurance policies, and mutual funds—after your passing.
It’s important to note that nominees are custodians, not legal heirs. The nomination does not override the will but ensures temporary, practical access to assets until legal matters are settled. Review and update nominations for:
- Bank accounts
- Fixed deposits
- Mutual funds and stocks (Demat accounts)
- Provident Fund (EPF, PPF)
- Insurance policies
Gift deed (if transferring assets during your lifetime)
A gift deed is a legal instrument used to transfer movable or immovable property during your lifetime without monetary exchange. This can help avoid potential disputes later, but should be executed with care and legal advice, especially since gifts are irrevocable.
Power of Attorney
A Power of Attorney (PoA) allows you to designate someone to act on your behalf in financial, legal, or property matters. This is particularly useful for Non-Resident Indians (NRIs) or elderly individuals who may face mobility challenges.
A PoA ensures continuity in decision-making and asset management if you are unable to act yourself.
Trust deed (if setting up a trust)
A trust is a legal structure through which assets are managed by a trustee for the benefit of one or more beneficiaries. This is especially useful for families with minor children, differently abled dependents, or complex wealth structures. Trusts can also be used to ring-fence assets from legal or business risks.
Aditya Chopra is managing partner, and Moxy Shah is an associate at The Victoriam Legalis.
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