Succession planning through WILL
WILL is a legal document that reflects the desire of a person as to how he/she wishes to manage and/or distribute the assets after his death. In cases where WILL is not prepared or not properly documented, it might lead to disputes in the family to settle your affairs after your death.
Who can be a beneficiary of WILL?
- The asset can be distributed to any person’s relatives, family members, friends, servants.
- It can be distributed to even stranger like any Charitable Institution or any third person. A trust can also be created for Pets like dogs etc.
- It is advisable that the witness and the beneficiary are not the same.
Who can be the executor of WILL?
- The role of executor is very important to legally execute the WILL.
- The person should be capable enough to manage affairs smoothly, he should be younger than the person whose WILL it is.
Who can be a witness of WILL?
- WILL should be witnessed by 2 or more people.
- It is advisable to avoid the beneficiary as a witness.
- The witness should not know the content of the WILL.
WILL: New Developments
- VIDEO WILL – A recent way to videography recording to read the content of WILL to prove the genuineness of WILL.
- DIGITAL WILL – All digital content, material, Google accounts, FB accounts, etc. can also be taken as part of the WILL along with a password, email account, etc.
- ORGAN DONATION – A separate WILL should be made for such organ donation as the WILL related to property is normally opened after all the rituals.
- SOCIAL CUSTOM WILL – A separate WILL should be made for social customs like after death only telephonic rituals to be followed or some other desire.
WILL: Under LOCKDOWN & COVID WILL
- As the WILL is prepared under lockdown, the format may not be proper and can be handwritten.
- There could be an issue of keeping two witnesses, neighbors, servants, maid, watchman can be considered.
- COVID WILL can be made in the hospital bed as well.
- The WILL must have two witnesses and therefore the help of hospital staff if possible can be taken even if the person is quarantine.
Income Tax Aspect in WILL
- In case of transfer of capital asset under WILL, the transfer is exempt.
- In case of receipt of assets under WILL, the receipt is a capital receipt and exempt u/s 56(2)(X) of the I.T. Act.
- The cost of assets received under WILL shall be the cost of the asset of the previous owner.
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