*How to draft a will for your NRI children – The Economic Times

Clipped from: https://economictimes.indiatimes.com/nri/invest/how-to-draft-a-will-for-your-nri-children/articleshow/92055665.cms?utm_source=ETTopNews&utm_medium=HPTN&utm_campaign=AL1&utm_content=23

Synopsis

Suppose one’s child is residing in a different country. In that case, there is a high possibility that he/she will be unaware of the details of the bank accounts, investments, location of the lockers, properties, and all the important documents, etc. Above all, the children may not be aware of the liabilities that may come in as a shock in case the eventuality occurs.

Neha Pathak

, Contributor Content

Head- Trust & Estate Planning, Motilal Oswal Private Wealth

As parents, we do our best for our children throughout our lifetime by providing them with the best education, medical facilities, or overall lifestyle. While we do it religiously during our presence, we need to ensure that they get the benefits of what we have earned and organized for them after we are no more. Other than education, medical, and lifestyle, we can organize our assets & liabilities in such a way that it becomes easy for them to handle them.

Planning for the eventuality

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Life is full of uncertainties, and the pandemic has taught us the hard way. No one knows the eventuality, but everyone needs to be ready for it. However, we can plan for the time when the eventuality actually happens.

When such an eventuality occurs, the family goes through emotional turmoil. At that time, it is of utmost importance that matters pertaining to succession could be easily sorted out. Keeping the same in mind, the basic that one can do is to create a will. Just to drive the point home, an RBI report states that nearly Rs 24,000 crore is lying unclaimed with the banks due to a lack of a nomination.

Drafting a Will
To begin with, one needs to start with the collation of the data of assets & liabilities. Will’s effective drafting ensures that our loved ones get what we have envisaged/allocated for them. They get their rightful share of our estates. Will drafting become all the more critical in the eventuality of untimely death. One needs to sign on all the pages along with a valid date. 2 or more witnesses should witness the Will. The witness cannot be the beneficiaries of the Will.

Will drafting for NRI children
Suppose one’s child is residing in a different country. In that case, there is a high possibility that he/she will be unaware of the details of the bank accounts, investments, location of the lockers, properties, and all the important documents, etc. Above all, the children may not be aware of the liabilities that may come in as a shock in case the eventuality occurs.

Assets will be everything that you own, such as your bank balance, valuables in a locker, FDs, mutual funds, holdings in Demat accounts and other investments, private company shares, Pension Fund, Provident Fund, Insurance, etc. Add details like which bank/institution and branch address where you hold the account or locker, etc., and their identification number. If you have assets such as art & artefacts, the same should be identified. Lastly, in case you have any liabilities, it will be pertinent to mention them in the Will so that the family is aware of them. In case you have a person who has been assisting you with the investments or handling your relationship, you may choose to add in the name and correspondence details of this person.

Clear division of wealth among children/dependent family members

The Will should clearly define the division of assets and liabilities. In the case of a minor, there should be a clause for the appointment of a guardian. And in the end, to deal with any asset that gets left out, ensure to add in a residuary clause.

It is imperative to mention that you make the Will you are making while you are of sound mind and that no one has coerced you into making the same. One may choose to annex a doctor’s certificate stating the same.

Charity
If you want to do philanthropy, you should mention the organisation’s name or person you wish to donate to and define the quantum/amount of donation.

Defining the executor of Will
An executor is a person who will be taking the Will to court to get probate and eventually distributing the assets to the persons mentioned in the Will. He should be a person who should ideally be younger than you. This responsibility can be taken by your NRI children too; however, it will be wise to consult with them regarding the same.

In the end, you should share the location of the will document with the executor as well as the NRI children so that the same can be accessed by them easily. We work hard to earn for ourselves and our loved ones, a will ensures they get their rightful share after us.

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