When we think of famous figures like Abraham Lincoln, Pablo Picasso, and Agatha Christie, we rarely associate them with the absence of a will. Yet, all three passed away without preparing one, leading to complications in the division of their wealth. A will is a crucial document that ensures your assets—whether immovable like property or movable like shares, fixed deposits, and mutual funds—are distributed according to your wishes after your death.
Common Misconceptions Around Wills
Many people assume that writing a will is unnecessary, especially when they trust their children or family members to divide the property fairly. Some believe that by nominating individuals in bank accounts, fixed deposits, or mutual funds, the division is already taken care of. However, both these assumptions can lead to major complications down the line.
Why Family Trust Isn’t Always Enough
Even in families where strong values and trust prevail, disagreements over property can arise after a family member’s death. Legal battles within families over property rights are not uncommon. Historical and modern examples show us that the absence of a clear will can lead to disputes, no matter how close-knit a family may seem.
Nominees vs. Legal Heirs: What’s the Difference?
Nominating someone in your bank account or investment portfolio is a good step, but it’s not a replacement for writing a will. A nominee only holds the asset in trust for the legal heirs, and it doesn’t give them full ownership. This distinction has caused numerous cases to go to court. One of the most common legal challenges arises when the name of the nominee differs from the person listed as a beneficiary in the will. In such cases, courts often have to intervene to clarify who is the rightful owner.
Supreme Court Ruling on Nomination vs. Succession
The Supreme Court of India has provided clarity on the matter. According to the court’s ruling, while companies are obliged to hand over funds to the nominee, the nominee does not automatically gain full ownership of the assets. Instead, they act as a trustee, holding the assets until they are passed on to the rightful legal heirs under the succession law.
This means that just making someone a nominee doesn’t guarantee they will own the property. The legal heirs, as named in a valid will, have a stronger claim to the assets. Without a will, the nominee may be caught in legal disputes, delaying the distribution of assets.
Nomination Alone Isn’t Enough—A Will Is Necessary
Nomination helps streamline the process for companies, but it doesn’t settle ownership issues. For instance, if you nominate a person for your bank accounts, mutual funds, or insurance policies, and that nominee isn’t included in your will as a beneficiary, there could be conflicts. Therefore, it’s essential to ensure that the people nominated are also named in your will to avoid any legal battles.
How to Avoid Legal Hassles: Write a Will
The best way to avoid complications is to write a clear, legally valid will. Make sure it specifies who will inherit your assets, including properties, investments, and other belongings. Not only will this give you peace of mind, but it will also protect your family from unnecessary legal troubles after you’re gone.
