Amidst the busy routine­s of our daily lives, we often ove­rlook the importance of planning for the future, particularly when it comes to our financial affairs and assets. While drafting a will may not be our first priority, it holds significant importance. In India, just like in many other regions worldwide, creating a will is a vital step towards ensuring that your assets are distribute­d according to your wishes after your passing. This blog aims to explore why drafting a will is important while shedding light on the process and highlighting the possible consequences if it is ignored.

When a person wants to specify how their property, financial and non financial assets should be­ handled or distributed after their demise, they e­xpress their wishes through a le­gal document called a will. A will serve as a clear and legally binding statement that outlines the desire­d transfer of possessions upon death. It can take various forms - typed or handwritten - and does not require specific paper. According to the Indian Succession Act of 1925, any mentally sound individual who has reached adulthood can create a will.

1. Preserving Harmony in Family 

Maintaining family unity is a compelling re­ason to write a will. Without a clear and legally binding contract outlining asse­t division, family conflicts can arise. These dispute­s have a significant emotional impact and often result in long-lasting rifts within the family. By writing a will, you can clearly expre­ss your wishes and minimize the chance­s of conflict among your loved ones.

2. Protection of Minors 

If you have minor children, it is important to draft a will to protect their welfare and financial stability. You can designate a person in your will, someone you can trust to give them the care and support they need when both parents die in addition to assets that are shown for their needs in terms of health, education , and other places of occurrence

3. Authority over the Distribution of Assets

A will gives you authority over how your assets are distributed after your death. Without a will, your estate will be divided according to Indian succession law, which may not suit your wishes. You can name specific beneficiaries in a document, such as your spouse, children, other family members, and even charities. Your assets will go where you believe they will make the most positive impact.

 4. Reducing legal complexity 

 Not having a will can lead to long and everlasting legal battles and complications for your heirs. The intestate laws in India govern the distribution of assets in the absence of a will. This process can be time-consuming and expensive, with assets tied up in court for years. Drafting a will simplifies the process, making it easier for your loved ones to access your assets.

 5. Tax Efficiency

With proper planning, a will can provide beneficiaries with many tax exemptions. Though there is no inheritance tax law in India, there are some income tax laws that we can avail to get tax exemption through declaration. Gifts of any amount do not attract any ‘gift tax’ as long as they are given to blood relatives. But it attracts income tax or ‘capital gains tax’ for income that you have now gifted. 

6. To keep the business going 

Writing a will is essential for securing the continuation of your business as you would want after your death. Without a clear succession plan in place, your company may experience instability or may even reach a stage of complete dissolution, which would have an impact on both the financial security of your family members and would have an impact on the livelihoods of your employees.  A will can designate who will take over the management of your business and how it will be operated, preserving its legacy and providing for your family's future.

7. Supporting Charitable Causes

In India, a large number of people are deeply committed to supporting various philanthropic initiatives and giving back to society. You can make provisions for the same in your will, ensuring that your assets continue to support the causes you care about after your demise. This aspect of will writing can leave an ever-lasting positive impact on the community and the world. 

8. Adaptability to Changing Circumstances

Unexpected turns and twists are bound to happen in one’s life. You have the ability to adjust to shifting circumstances when you write a will. To reflect new assets, variations in family dynamics, or changes in your financial circumstances, you can update your will as necessary. It is important to regularly examine and revise your will to make sure it still accurately reflects your intentions

9. Choose an Executor

While you write your will you can choose an executor, someone you can rely on to handle and oversee the disposal of your assets in accordance with your preferences. The executor plays a vital role in ensuring that your estate administration is carried out efficiently and in compliance with the law.

 10. Peace of Mind

In the end, creating a will gives you peace of mind. It can be relieving and reassuring to know that your affairs are in order and that your loved ones will be cared for in accordance with your desires. Additionally, it streamlines the procedure for your family during a trying time so they can concentrate on grieving and healing rather than complicated legal issues.

Conclusion

Ensuring the financial security of your loved ones and preserving your assets by making a will is an important step. It allows you to make informed decisions about the distribution of your assets, reduces legal complications, and provides tax benefits. In addition, a will is a powerful tool to maintain family unity, protect young children, and support a charity close to your heart. While it may not be the most exciting subject to consider, drafting a will is an expression of love and responsibility for your family and favorite causes with which you honor your wishes and you make sure your property is used the way you want it. Don’t delay, write your wishes with QuikDox and protect the future of those you care about most. Your property and your wishes must be preserved.