How Can Lack Of Will Creation Affect Your Family’s Financial Future?

By Author: Shailesh Gajjar
Total Articles: 168
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India stands on the precipice of one of the world’s most impactful intergenerational wealth transfers. A significant number of individuals will pass wealth to their successors in the next few years. A Financial Express article highlights that over $1.3 trillion in wealth will pass to the next generation in the coming decade. This unprecedented movement of capital represents both the triumph of India's economic growth and a looming crisis that could tear families apart.

The Courtroom Inheritance Problem

Behind these staggering numbers lies a troubling reality: India's wealth transfer system is fundamentally broken. The Deccan Herald refers to the national judicial data grid statistics and mentions that more than 78% of the 1,09,93,516 civil cases pending in Indian courts are related to disputes over inheritance and succession. The irony is profound: The very wealth meant to secure families' futures is destroying them instead.

Despite India's growing affluence, creating a legally sound will and ensuring adequate estate planning remains surprisingly uncommon. Wealth management firm Julius Baer Group Ltd. ...
... noted that more than 40% of families have not secured their succession roadmap, leaving them vulnerable to legal troubles.

One can find several news articles mentioning the surge in will creation among young Indians, especially after the 2020 pandemic. However, the India Succession Act does not make it necessary to notarize or register the will. It can be a simple list of how a person wants to distribute their assets after their demise. Many people limit their wills to real estate and bank accounts, overlooking other financial instruments. This often complicates the inheritance process and exposes families to potential legal disputes.

Why is having a Legal Will Necessary?

Also called the "Last Will and Testament," a legal will in India is a formal document that allows an individual to specify how their assets, property, and possessions should be distributed after their death.

The person who writes the will is called the “Testator”, and they should be of sound mind and at least 18 years old. The Indian Succession Act of 1925 does not make registrations mandatory, but it requires the will to be signed by the testator and two other witnesses.

Although the registration of the will is not compulsory, financial experts and estate planning lawyers highly recommend the process for authenticity. Having a legal will is essential because it prevents family disputes over inheritance, ensures your assets are distributed according to your wishes rather than the default succession laws, reduces legal complications for your beneficiaries, and provides clarity about guardianship arrangements for minor children.

Without a will, your property will be distributed according to personal laws based on your religion or the Indian Succession Act, which may not align with your intentions and can lead to prolonged legal battles among family members. Thus, a will is a crucial document for protecting both your legacy and your family's harmony.

The Inheritance Nightmare: What Happens When Indians Skip the Will?

Creating a legally sound will remains surprisingly uncommon in India. Cultural taboos around discussing death, combined with procrastination and lack of awareness, leave most estates without clear directives.

a. The Nomination Confusion

Modern wealth is not just property and gold anymore. It's scattered across multiple bank accounts, mutual funds, Employee Provident Fund accounts, insurance policies, and digital assets. Each requires its own nomination process, yet most people either skip this step entirely or create contradictory nominations across different instruments.

b. The Informal Transfer Trap

Many Indian families still rely on verbal agreements and informal arrangements for asset transfers. "Beta, this property is yours" might work in films, but it creates legal quicksand in real courtrooms. Without proper documentation, these well-intentioned gestures become battlegrounds where siblings fight over their parents' wishes.

c. The Judicial Bottleneck

Even when families agree on distribution, India's overburdened court system can turn straightforward inheritance cases into decade-long sagas. The average inheritance dispute takes 7-10 years to resolve, during which assets remain frozen and relationships deteriorate beyond repair.

d. The Hidden Costs of Inaction

The true price of poor estate planning extends far beyond legal fees. Families watch their wealth erode through court costs, see business empires crumble due to succession uncertainty, and experience irreparable relationship damage. Children who grew up together become adversaries, and the legacy their parents worked to build becomes the very thing that destroys family bonds.

Moreover, the wealth that was meant to drive economic growth and create opportunities remains locked in legal cases, unable to contribute to India's development story.

The Path Forward

The solution isn't complex, but it requires a fundamental shift in mindset. Wealth transfer must be treated as seriously as wealth creation. A legally valid will serves as the cornerstone of this process. It's the only document that gives you complete control over your assets after death and ensures your wishes are legally binding rather than subject to interpretation.

The peace of mind that comes from knowing your family won't fight over your life's work is invaluable, but it can only be achieved through proper legal documentation.

One must remember that proper estate planning goes beyond drafting a will. It will also include the following:

>> Organizing your wealth and obligations to keep track of all traditional and alternative investments and debts.

>> Clear documentation of all assets and their intended beneficiaries via an advanced financial management platform.

>> Regular review and alignment of all nominations across financial instruments.

>> Professional guidance to navigate complex legal requirements.

>> Open family discussions about wealth transfer intentions while everyone is still healthy.

A Legacy worth Preserving

India's trillion-dollar wealth transfer represents more than money. It's the culmination of generations of hard work, sacrifice, and dreams. Whether this becomes the foundation for future prosperity or the source of endless conflict depends entirely on the choices being made today.

The question isn't whether this wealth will change hands. The question is whether it will strengthen families or destroy them in the process.

Wealth creation and wealth transfer are important parts of estate planning. Before writing a legally sound will, organize your debts and obligations with the help of the best financial management platform.

Wealth creation and wealth transfer are important parts of estate planning. Before writing a legally sound will, organize your debts and obligations with the help of the best financial management platform.

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