5 Extremely Important Reasons To Consider Writing A Will

By | May 3, 2018

There’s more to drawing up a will than just allocating property and possessions to your legal heirs. We’ll tell you all about it right here.

5 Extremely Important Reasons To Consider Writing A Will

Drawing up a will forms the cornerstone of estate planning. It not only clearly spells out how your possessions and property, post your death, is to be handled, it also offers a legally valid way to protect your spouse, children, family and assets (like earnings from your investments in Mutual Funds or Fixed Deposits), should there be any dispute after you have passed on.

However, most people still seem to put off drawing up a will due to a host of reasons. In this article, we’ll tell you five reasons why writing a will should be on your list of priorities. But first, let’s delve into the basics of a will.

What is a will?

A will is nothing but a legally-binding document that describes your wishes regarding the distribution of your property after your demise.

After the death of an individual, his or her property devolves in two ways:

  • According to his will i.e. testamentary, or
  • According to the respective laws of succession, in the absence of a will.

In case an individual dies intestate (dies without a will in place), the laws of succession come into play.

Additional reading: Death Claim: Documents Required For A Life Insurance Claim

5 important reasons why you need to draw up a will

Because you love your family: Creating a will is one of the most well-thought-out and responsible decisions that you can make for your family, especially if they are financially dependent on you. Since a will is a legally binding document and clearly indicates how you want your estate to be handled post your demise, it will minimise the occurrence of any dispute among your heirs and ensure that they get their fair share.

You have the option to remove people from your will: One of the lesser known advantages of possessing a will is that you have the option to remove individuals whom you do not want your estate to end up in the hands of and who would otherwise stand to inherit your estate in the absence of a will. Estranged siblings or spouses could be some of these.

Minimise estate taxes: A will can significantly bring down the burden of taxes that might be payable on the value of the property and the money you leave behind.

You can make gifts and donations: Many individuals prefer donating their life savings or making significant contributions to several charitable institutions after their demise. Having a will helps your executor carry out your wishes as you decide.

You decide who will be responsible for the affairs of your estate: While drawing up a will, it’s essential that you name an executor. This person could be your spouse, trusted friend, relative or even a lawyer specialising in estate planning.

You can empower your executor to ensure that all your affairs are in order including paying off bills and notifying banking establishments of your demise. Executors play the biggest role in the administration of your estate, so remember to appoint someone who is honest and trustworthy.

Additional reading: 10 Things To Know If You’re Looking To Create A Will

Things to keep in mind about wills:

  • Your will should be legally valid

Your will is valid as long as it:

  1. a) Spells out in unambiguous terms how your estate is to be distributed.
  2. b) The will was not obtained by force, coercion, or under influence. In such instances, the will shall be considered void.
  3. c) Is signed and dated by you in the presence of two independent adult witnesses, and then signed by these witnesses in your presence. These witnesses cannot be people who are going to inherit anything from you.
  • You can change your will as you deem fit

You can change your will at any time while you’re alive. Events like births, deaths or even divorce necessitate changes in your will. Keep reviewing your will every 3-5 years as your beneficiaries change.

  • Codicil to the will

There may be sections of your will that you want to revise without changing the entire will. You can do so by making a codicil to the will. One can execute the codicil in a similar way as the will. Neither the will nor the codicil is irrevocable. One can change or revoke a will any time.

  • Keep the will safely and securely

It’s crucial that you keep the will document safe, yet accessible. If you put the will in a safe deposit box that only you can get into, your family might need to seek a court order to gain access. Your lawyer or someone trustworthy should keep signed copies in the absence of the original will. However, keep in mind that the absence of an original will complicate matters.

  • Register your will

It may not be mandatory but it is a good idea to register your will as this will help your family members during execution. You don’t have to declare the details of your will to your family members but you can inform them about its existence.

  • Get professional help

It is always advisable to get professional guidance on matters concerning your estate. Professionals will give you more objective advice than your family and friends. Don’t attempt to do your own estate planning as errors in it will have long-term consequences for your estate and family.

Additional Reading: Getting A Divorce? Here’s How You Can Split The Assets

Crafting a will may not be a task one would look forward to. It involves not only acknowledging that death is inevitable but even planning for it. Take some time out to draw up a will if you don’t want your entire life’s savings to go up in smoke after your death.

Did you just embark on building your investments? We understand how important this is and are here to help by ensuring that you get the best deals possible. You can explore multiple investment options like Mutual Funds or Fixed Deposits or even get yourself a house or apartment with the help of a Home Loan. Just hit the button below to explore your options!

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit www.bankbazaar.com for the latest rates/offers.

Leave a Reply

Your email address will not be published. Required fields are marked *