WILL - BASIC TERMINOLOGIES
Estate Planning: It is process by which a person bequeaths his assets to intended beneficiaries. The Estate Planning process includes Estate Consolidation, selecting the ‘Mode of Estate Planning’, deciding beneficiaries and other stakeholders who are to be part of the process. Needless to say, ensuring nomination in all investments is a basic requirement. At the same time, it is important that the family members know the location of all important documents and means of reaching it. We have practically seen situations where the family members aren’t aware of the details of the investments made by the bread-earner. In case of an unfortunate event to the investor, family members have no clue about his insurance policies, investments (across post office, banks, Mutual funds, stocks, PMS, AIF and real estate). The situation cannot get worse if there is an unknown liability.
WILL – It’s the most prominent method followed in our Country. All that one needs to do is compile all his Assets and name the beneficiaries to those assets. Is it all that easy? Or can the process be made easier? One – When there is a step-by-step solution to any issue, it can be resolved. Two – Professional or domain experts can do the work for you.
Before we get into finer details, let us first understand various terminologies relevant to WILL
|1. Testator – It is the person writing the WILL|
|2. Beneficiaries – Individual(s) who would enjoy the benefits as per the WILL|
|3. Nominee – Individual(s) who are mentioned as Nominee(s) in the investments made by testator|
|4. Executor – Is a person(s) appointed by testator to execute the WILL|
|5. Witness – Is/are persons who stamp their authority/confirm such a WILL was indeed written by Testator|
|6. Codicil – Any alterations made to the WILL is annexed to the WILL as Codicil|
|7. Estate – Refers to the Net worthof the testator|
|8. Probate – probing into the estate of testator by the court is called a probate process. It also includes certifying the WILL and approving executor to go ahead with implementation of tasks mentioned in the WILL|
|9. Revocation of WILL – A WILL can be cancelled anytime during the life of testator. Revocation can be done by simple destruction of the WILL or by writing a new WILL or by marriage|