Bequeathing Bank Accounts, Demat Accounts, and Liquid Assets Through a Will

When a person desires to leave their bank accounts, demat accounts, and other liquid assets to a beneficiary post their death, a will serves as the legal document to do so. Understanding the process, requirements, and the importance of clarity are crucial for the proper execution of such a will.

Requirements for a Valid Will

For a will to be valid, the testator must be in sound health and mind. The document must reflect the testator's clear intention to bequeath their assets to a specific beneficiary. Coercion, intimidation, or any form of pressure during the process invalidates the will. The property or assets mentioned in the will must be specific and identifiable, with clear indications of what is being bequeathed. For instance, if a bequest includes a specific plot of land with two rooms and a garden, any subsequent development does not affect the clarity of the bequest.

What Can Be Bequeathed?

A testator can bequeath any property, movable or immovable, provided it is identifiable and clearly stated in the will. Mere nomination of a beneficiary in financial accounts does not make them a legal heir. The testator should ensure that the account details and related assets are explicitly mentioned to avoid confusion or disputes during settlement of the estate.

Usage of a Will

A will plays a critical role in providing clarity and ensuring that the property or assets are distributed as per the testator's wishes. It is best to draft a registered will to ensure its authenticity and protection under law. A registered will is binding and protects the estate from legal challenges.

Case Example: Raghavan AVS

In a case involving Raghavan AVS, it was highlighted that mere nomination is not sufficient to make a person a beneficiary in financial accounts. The key aspects emphasized in this case include the importance of clarity, specificity, and the need for a legally registered will to ensure the distribution of assets as intended.

How to Draft a Valid Will

To draft a valid will, it is advisable to seek legal assistance. A legal professional can provide guidance and ensure that all the necessary clauses are included. The will should clearly mention the assets to be bequeathed, including bank accounts, demat accounts, and other liquid assets. It is important to keep all financial documents updated and to frequently review the will to ensure it remains valid and reflects any changes in the testator's wishes.

Key Takeaways

A will must be drafted in sound mind and free from coercion. Specific and identifiable assets, such as bank accounts and demat accounts, should be explicitly mentioned. A registered will is more legally binding and protected from challenges. Mere nomination does not automatically make a person a legal beneficiary. Legal assistance is crucial to ensure a valid and legally recognized will.

Properly drafted and legally recognized, a will is the best tool for ensuring that bank accounts, demat accounts, and other liquid assets are distributed as intended by the testator. By understanding the requirements and the legal framework, individuals can protect their assets and avoid potential disputes.