Thread by @54r3ya

With the situation as it stands, all of us should be thinking about whether we have our financial documents in order, to make it as easy as possible for our families if something should happen. Here's a 101 on succession, wills and nominations. 1/n

First, please check all material financial accounts to ensure that nomination details are complete. You should be able to do this online or speak to an RM. Nominations enable the financial institution to transfer assets to the nominee upon production of a death certificate. 2/n

In the absence of a nomination, the FI will typically insist on a court approved document such as a probate (i.e. a court validated will) or a succession certificate to hand over access to funds. Both take around 8-9 months to obtain, and delays can be expected due to Covid. 3/n

Except for life insurance, a nominee only has admin authority over the account. Your will / intestate succession principles would continue to govern how the property is distb. So you can appoint an able adult, even if the beneficiaries include aging parents/ children etc. 4/n

Life insurance is an exception to the above rule, and a nominee is considered the rightful inheritor of payments under a policy. The policy can also be divided amongst multiple nominees. 5/n

What happens if you pass away w/o leaving a will? This is known as intestate succession and the distribution of property will depend on your religion. For eg. see links for the rules of inheritance for Hindus (en.wikipedia.org/wiki/Hindu_Suc….) and Muslims (en.wikipedia.org/wiki/Muslim_pe…) 6/n

Intestate rules may not always work the way you want them to. For eg. if you're a married Hindu female, your husband’s family is entitled to your property prior to your parents, if you die w/o leaving a spouse or children . A will gives you control over who receives what. 7/n

Muslims are only eligible to bequeath 1/3rd of their property under a will, with the rest going under pre-decided fractions (see link above). Other religions have complete freedom to give to whoever they want, even if the recipient is unrelated, or is a charity for instance. 8/n

What the will should contain: a) Date, and a statement that the will which revokes all previous wills; b) List of assets and beneficiaries – you can include % based distbs or give specific assets to specific beneficiaries as long as the details of the bequest are clear. 9/n

c) Details of executor i.e. someone to manage the distribution of the estate. The executor can be family but need not be; d) A general statement that you are writing the document while in sound mind, without anyone influencing or coercing you to make the relevant bequests. 10/n

d) If you have minor children, please specify a testamentary guardian who will take custody if neither parent is around. Do also speak to the person you have in mind and make sure that they are comfortable with the idea. 11/n

Procedural stuff: Number your pages and sign your will on every page. You would also need two adult witnesses to be physically present and sign at the end. This can be family, if you are in isolation, but need not be. Witnesses don’t need to know the contents of the will. 12/n

You don’t need a lawyer to write it. It is straightforward and can be even a page long. As long as you specify the date of signing, details of bequests, your capacity to write it, and meet the procedural requirements, it should be valid. No requirement to stamp or register. 13/n

This is a 20K foot overview. There are of course nuances to the law. You must have your will vetted for enforceability or drafted by a lawyer when you can. But don’t postpone because you don’t have the time or energy for a lawyer. Better to have something in place first. 14/n

Finally, pls attach a list of assets w/ info that your next of kin will need to trace down what you own and owe. Which financial institution, branch, account/folio/ DP number, nomination details, location of property, location of title docs, share cert numbers, loans etc. 15/n

It sounds tedious and depressing and can be, but a little bit of prep will save your loved ones from scrambling around for information, or having to deal with unnecessary paperwork when you are no longer around. Pls think of them and prioritise this. 16/n

Do also speak to your domestic workers regarding their contingency plans, and nominations for their bank accounts (at the minimum). It will be harder for them if family funds are stuck due to inadequate paperwork.