- Date : 10/09/2023
- Read: 3 mins
Learn about different types of wills in India for secure financial planning.
In the wake of the global COVID-19 pandemic, ensuring financial security has become more crucial than ever. Preparing a will takes centre stage among the often-neglected aspects of financial planning. A will is a legal document that dictates the distribution of assets and properties after a person's passing. This article will explore what a will is, the different types of will, and the ideal time to make one.
-
Understanding the significance of wills in financial planning.
-
Exploring the different types of wills in India
-
Importance of probate in validating and distributing assets after death
What is a Will?
A will, also known as a testament, is a legally binding document outlining how a person's possessions and properties will be distributed upon death. It holds legal validity under the Indian Succession Act of 1925.
Also Read: Estate Planning: 10 Things To Do Before You Die
Types of Wills in India
1. Privileged Will:
This type of will is exclusively for Armed Forces members engaged in active conflict or military exercises. It holds the privilege of being legally valid even if made orally and not in writing. However, at least two witnesses are required to validate a privileged will.
2. Unprivileged Will:
An unprivileged will is appropriate for individuals not covered under a privileged will. It can be handwritten or typed but must be signed or thumb-impressed by the testator to be legally valid.
Types of Unprivileged Wills:
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Holograph Will: A handwritten will entirely prepared by the testator. Such documents often receive special consideration in court when disputes arise concerning their authenticity.
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Joint Will: Created and signed by two or more individuals, such as a married couple. It comes into effect after the death of all testators and can be modified or revoked only with the agreement of all parties involved.
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Mutual Will: Typically made by married couples, this will contain various mutually agreed terms and conditions, conferring reciprocal benefits to the surviving spouse.
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Conditional/Contingent Will: This will only take effect if specific conditions mentioned in the document are fulfilled; otherwise, it becomes legally void.
When to make a Will?
Everyone, regardless of age or financial status, must create a will. Having a will ensures that your assets are distributed according to your wishes. It becomes even more vital if you have dependents, such as children or elderly parents, and significant life events like marriage, divorce, or acquiring substantial assets should prompt a review and update of your will.
Also Read: Estate Planning Made Easy: 6 Things To Include When Writing A Will
What is the probate of a will?
Probate is the legal validation of a will after death. It confirms its authenticity, appoints an executor for asset distribution, and prevents beneficiary conflicts.
Conclusion
Understanding wills and their types is critical for secure financial planning. By preparing a valid will, you secure your loved ones' economic well-being and prevent legal disputes. Take the time to create a will to provide peace of mind for your loved ones.
Click here for the latest articles on Financial Planning
Disclaimer: This article is intended for general information purposes only and should not be construed as insurance or investment or tax or legal advice. You should separately obtain independent advice when making decisions in these areas.
In the wake of the global COVID-19 pandemic, ensuring financial security has become more crucial than ever. Preparing a will takes centre stage among the often-neglected aspects of financial planning. A will is a legal document that dictates the distribution of assets and properties after a person's passing. This article will explore what a will is, the different types of will, and the ideal time to make one.
-
Understanding the significance of wills in financial planning.
-
Exploring the different types of wills in India
-
Importance of probate in validating and distributing assets after death
What is a Will?
A will, also known as a testament, is a legally binding document outlining how a person's possessions and properties will be distributed upon death. It holds legal validity under the Indian Succession Act of 1925.
Also Read: Estate Planning: 10 Things To Do Before You Die
Types of Wills in India
1. Privileged Will:
This type of will is exclusively for Armed Forces members engaged in active conflict or military exercises. It holds the privilege of being legally valid even if made orally and not in writing. However, at least two witnesses are required to validate a privileged will.
2. Unprivileged Will:
An unprivileged will is appropriate for individuals not covered under a privileged will. It can be handwritten or typed but must be signed or thumb-impressed by the testator to be legally valid.
Types of Unprivileged Wills:
-
Holograph Will: A handwritten will entirely prepared by the testator. Such documents often receive special consideration in court when disputes arise concerning their authenticity.
-
Joint Will: Created and signed by two or more individuals, such as a married couple. It comes into effect after the death of all testators and can be modified or revoked only with the agreement of all parties involved.
-
Mutual Will: Typically made by married couples, this will contain various mutually agreed terms and conditions, conferring reciprocal benefits to the surviving spouse.
-
Conditional/Contingent Will: This will only take effect if specific conditions mentioned in the document are fulfilled; otherwise, it becomes legally void.
When to make a Will?
Everyone, regardless of age or financial status, must create a will. Having a will ensures that your assets are distributed according to your wishes. It becomes even more vital if you have dependents, such as children or elderly parents, and significant life events like marriage, divorce, or acquiring substantial assets should prompt a review and update of your will.
Also Read: Estate Planning Made Easy: 6 Things To Include When Writing A Will
What is the probate of a will?
Probate is the legal validation of a will after death. It confirms its authenticity, appoints an executor for asset distribution, and prevents beneficiary conflicts.
Conclusion
Understanding wills and their types is critical for secure financial planning. By preparing a valid will, you secure your loved ones' economic well-being and prevent legal disputes. Take the time to create a will to provide peace of mind for your loved ones.
Click here for the latest articles on Financial Planning
Disclaimer: This article is intended for general information purposes only and should not be construed as insurance or investment or tax or legal advice. You should separately obtain independent advice when making decisions in these areas.
