The unpredictability of life, the pandemic reminds us that preparing for the end is an act of love and responsibility. It ensures our loved ones aren’t left to navigate uncertainty. Prepare for the Inevitable: Secure Your Family’s Future Today. When that moment comes, the last thing your family should face is confusion over finances, assets, or your final wishes. Taking a few thoughtful steps now, you can spare them stress, protect what you’ve built, and give everyone peace of mind. This isn’t about being morbid, it’s about being prepared. Here’s a straightforward, practical plan to get your affairs in order so your legacy reflects care, not chaos. With a few simple thumb rule, you can prepare for life’s uncertainties and help your family avoid hassle when they access and manage your investments after you’re gone.
Thumb Rules to Shield Your Family from Financial Chaos
1. Get all information together in one place – Compile a comprehensive list of all your financial accounts and assets, including bank accounts, loan accounts, demat and trading accounts, mutual funds, insurance policies, and other investments, in a spreadsheet. Record key details such as account numbers, institutions, approximate balances, nominee information, and login credentials where appropriate. Ensure that at least one trusted person (ideally two) has access to this document. For security, you can password-protect the file and share the password separately. Store the spreadsheet in a safe yet accessible location, such as encrypted cloud storage with shared permissions or a physical drive kept securely. Review and update it regularly to keep the information current.
2. Use joint bank account – Open one joint bank account with your spouse, preferably with the “Either or Survivor” mode of operation. In such a joint account, either person can operate it independently during both lifetimes. If one spouse passes away, the surviving spouse automatically gains full access and can continue operating (or close) the account without interruption. In contrast, no one else can operate a single account. The nominee (or legal heirs, if no nominee exists) must follow the bank’s claim process. They need to submit a death certificate, identity proofs, and possibly succession documents, which often causes delays and hassle.
3. Step up nominees – For bank accounts, mutual fund folios, and demat accounts, always appoint a nominee. A nominee is the person you designate to receive assets after your death. Institutions transfer funds, units, or securities directly to the nominee with simplified documentation, making the process faster. Remember, the nominee is not the final legal owner; they hold the proceeds in trust and must distribute them to your legal heirs. Choosing a trusted family member as nominee makes the process smoother than dealing directly with the institution. Without a nominee, even obvious heirs face complex requirements such as succession certificates, legal heir affidavits, or indemnity bonds. These documents create delays and paperwork. To protect your family from unnecessary hassle, ensure every account has an up-to-date nominee.
4. Tell your spouse – Tell your spouse how much money you have and where you keep it. This may seem obvious, but many people still neglect it. Trust me: you don’t want to be trying to explain your financial life while struggling to survive in an ICU, or worse, leaving your loved ones in the dark during such a crisis. Open communication about your assets, accounts, and key details empowers your family to act quickly and confidently if you become incapacitated or pass away. Clear information helps them avoid unnecessary stress, delays, and potential disputes.
5. Keep Key Contacts – If you have an insurance agent, financial advisor, chartered accountant, lawyer, or even a deeply trusted friend who knows your financial affairs, make sure your family has their contact details readily available. Include this information in your spreadsheet (from earlier steps), your Will, or a secure note accessible to your spouse or trusted family members. In times of emergency, whether incapacity or after your passing, these professionals can provide critical guidance, help locate documents, expedite claims (e.g., insurance payouts), or coordinate asset transitions. Without easy access to the right contacts, your loved ones may waste precious time searching or dealing with unfamiliar parties during an already difficult period. This small step ensures they can get expert support quickly, minimizing delays, confusion, and added stress.
6. Revisit this info every quarter – Once a quarter, pour yourself a tall drink, sit down, and do a quick refresh of the information you’ve compiled – your spreadsheet, nominees, contacts, and key details. If you’re like me, you’ll remember new things each time: a YouTube channel you once created, a small debt owed to a friend, another credit card you applied for, or forgotten digital assets. Documenting these as they come up keeps everything current. Even better, maintain a simple running note about major life updates from the past quarter (new accounts, family changes, health notes, etc.). This habit makes a full review, every 3 to 5 years, or sooner after big events, much easier and more effective. Over time, it ensures your loved ones have the complete, up-to-date picture without last-minute scrambling.
7. Write a Will – A simple Will written on plain A4 paper can legally state how you want to distribute your property and investments after you’re gone. No matter how much (or how little) you own, you should still create a Will to prevent your family members from facing unnecessary disputes, delays, or legal hurdles later. You can make a valid Will at home in India (Note: these guidelines apply primarily under the Indian Succession Act, 1925, for most communities; rules may differ in other countries/regions/religion). Just make sure to follow these key points:
- As the testator, you must be at least 18 years old and mentally capable, fully aware of your actions and intentions, free from coercion, fraud, or undue influence.
- Clearly state your intentions in writing (handwritten or typed is fine, no stamp paper required).
- Sign the Will (or affix your mark/thumb impression) at the end.
- Have at least two credible witnesses (preferably unrelated and younger than you) who see you sign and then sign the document themselves in your presence (they don’t need to read the contents, but their signatures attest to your voluntary execution).
- Optionally, date it and consider registering it at the sub-registrar’s office for added legal strength (though registration is not mandatory for validity).
I, ........... son/daughter of ............, resident of ............., hereby revoke all my previous Wills and declare that this is my last Will, which I make
on this (Date) .......... .
May Date of Birth is ..........
I declare that I am in good health and possess a sound mind. This Will is made by me without any persuasion or coercion and out of
my own independent decision only.
My spouse's name is ................ her Date of Birth is ...............I leave behind the following assets
1. House no .............. located at...............
2. Mutual funds, Jewellery, cash, bank accounts, PF, PPF, FD accounts and share in certain companies.
All the assets owned by me are self-acquired properties. I have full right and absolute power over these assets.
I hereby bequeath all my properties, whether movable or immovable, whatsoever and wheresoever, to (my spouse) ............IN WITNESS
WHEREOF I have hereunto set my hands on this ......... (Date) at ................. (place).
Signature
(Full Name)
Signed by above ............... (name) as his/her last Will and Testament, in our presence, and has understood perfectly and approved
the contents and admit us as witnesses.
1. Witness1
2. Witness2
This Will is sufficient and legally admissible in court (India). A single document can spare your family a great deal of hassle.
Disclaimer: I express my own views in this article after reading the book, without intending to offend anyone. I do not sponsor or endorse anyone, and any resemblance to actual persons, living or dead, is purely coincidental. The mentioned link is an affiliate link, and purchasing the book through it is a great way to support me if you’d like to read along!
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