Most of us think that by nominating some one from family in movable or immovable property is suffice to transfer the asset in the name of the nominee. But, in reality this is not true. One must know the legal standing of the nomination before signing nomination form. Nomination is the facility available to individual to transfer the asset in the name of nominee in case of his/her demise. The liability of insurance co., mutual fund, banks and others comes to an end, if the asset is transferred as per nomination registered with them. It doesn’t mean that nominee is the owner of that asset but he/she is trustee of the asset and has to share the asset with other legal heirs if will is not executed. The other legal heirs, who have not received the share in asset, can also demand the share in the asset and can also seek legal course and recover their share from the nominee. In the absence of a will the asset will be transferred to legal heirs as per succession act.
It is equally true that most of us even fail to register the nomination wherever it is available say in bank account, demat account, mutual fund, PF account or other investment or even in societies and institutions where we own immovable property. In the absence of nominee you have to go to court and obtain succession certificate or probate to claim the ownership of the asset even will is made. The first and most important step is to nominate someone to whom you intend to transfer that asset and than prepare a will and allocate the asset as you desire.
High Court in its recent judgment has given absolute right to nominee in case of shares owned in demat account, which is the only exception otherwise in all other cases, nominee is only the trustee of the asset and not the owner. In the absence of proper nomination and valid will, your heirs will be fighting for your assets in the long legal battle, which may be very painful. So, it is very much important to execute will at earliest so that your near and dear one gets share of your assets as you desire and also you can keep away unwanted persons out of your assets.
Guidelines to prepare a Will.
► A Will can be defined as “ a Wish of an Individual to Legally allocate or transfer all his/her assets both movable and immovable to his/her Legal heirs or to loved ones after his/her demise.”
► A Will must be written either hand-written or typed out. No stamp paper is necessary.
► A Will should be Simple, Precise and Clear.
► A person making a Will is known as a "TESTATOR".
► It is always better to take the advise of a trusted advocate.
► There should be an Executor of the Will who would be entrusted with the responsibility of ensuring that the assets are distributed according to the provisions of the Will.
► The Testator in the presence of at least two Witnesses, who have also to attest the same, should sign a Will.
► It would be better if one of the Witnesses is a medical practitioner, so it cannot be easily challenged on the ground that the person was not of sound mind when the Will was made.
► A Will must always be dated. Each page of the Will should be serially numbered and signed by the Testator and the Witnesses.
► The Will may be kept in a safe place like a bank vault and duplicate copies may be given to the Executor and the beneficiaries.
► For making changes only in certain clauses of the Will, a Codicil (supplement) is to be prepared.
► If there are too many changes in the Will, it is better to prepare an entirely new Will.
► It is not compulsory for one to register a Will with the Registering Authority, but if registered than it becomes more powerful and one cannot challenge it easily.
► A person's Will becomes operative only after his or her demise.
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