People may find it difficult to divide up their inheritance amongst their heirs. To know who should inherit the wealth can be tricky. However, it is a mark of recklessness not to know who will inherit one’s wealth.
Many believe that dividing wealth equally across children is the logical solution to inheritance. Some families may be unable to afford to give their heir an equal share of their parent’s wealth. An equitable inheritance is one in which each heir gets an amount proportional to their circumstances, rather than an equal legacy, as many inheritance planning lawyers point out. In other words, when is it okay to leave someone the same inheritance you received, and when is it preferable to leave someone a different one? It’s important to consider the long-term effect each decision will have on how well your objectives are followed out.
According to a study by Barclays Wealth Insight, most Indian wealthy individuals believe that the following generation will preserve their assets and legacy. Globally that figure is 65 per cent, which means that 35 per cent of the world’s richest people do not trust their children to secure their fortune.
Inheritances are a crucial connection in determining whether the current disparity generates more inequality in the years to come. A rise in wealth disparity now, along with a growing proportion of inherited total wealth and bequest inequality, is expected to lead to a rise in wealth inequality in the future. In the future decades, a rise in wealth inequality might be the outcome of such a trend. Furthermore, as time passes, this cycle may self-reinforce.
Inheritance is the practice of giving or rather transferring property, titles, debts, rights, and duties to the lawful heir of a deceased person. Either a will or the rules of succession may be used to accomplish this. Inheritance is regulated differently by different faiths, cultures, and societies.
When a family member dies, people feel that no grief is greater than the loss of a loved one, but they also believe that any form of family quarrel over the succession of property is more agonising. This results from a lack of knowledge about wealth inheritance in India.
Wealth and property values have skyrocketed in an era of inflation, making it imperative for the legal heirs to protect the property before and after a lawful owner’s death. Property ownership is a legal process that must be completed before it may be transferred to a new owner.
As a result, the legal procedures and formalities involved in acquiring the property may vary.
Will– A legal document for the owner of one’s health to inherit the wealth
According to the Indian Succession Act of 1925, a will is a statement or a legal document that specifies who will acquire, administer, and profit from an owner’s assets after his/her death.
A Probate occurs when the will is given a certified copy. To ensure that the copy of the document is authentic, it bears the official seal of the court that administers the estate of the testator. In this way, the Probate proves the heir’s control over a property after the decedent’s death.
A will may be drafted by an adult who has reached the age of majority, is of sound mind, and is not a juvenile.
The competent and legal heir to inherit the wealth
If an ancestor dies without a will or naming a legal successor is entitled to his or her inheritance under Indian law. Due to this law, a legal successor is a person who inherits the property of an ancestor, either by the law or under the terms of a will.
Legal heirs are necessary for property claims and insurance coverage; they are the legal successors of the property owners.
Regarding the Indian Succession Act of 1925, Hindus may transfer their property by will. [1] In accordance with this Act, someone may lawfully transfer his property to another person by drafting a will.
Rights of different individuals to inherit wealth
- Widow: A woman or widow has a claim to her deceased husband’s self-acquired wealth or assets, but she does not have any claim to her deceased husband’s ancestral land.
- Daughters: Before the year 2005, in India, the right part of the family wealth could only be passed down to daughters who had not yet married. On the other hand, in the year 2005, girls were finally given the same rights and responsibilities as sons.
- Children: In India, the rules of succession state that a son automatically has a title to his father’s and grandfather’s property just because he was born. Additionally, a son has the same rights as his father does regarding their ancestral property. Suppose a person passes away without leaving a will and has separate or self-acquired property. In that case, his son, surviving mother, sister, grandmother, and brother all have equal rights of succession in his property. It doesn’t matter whether the person has accumulated wealth through hard work; this is the situation anyway.
- Adopted Child: In India, a child who was adopted would have rights of inheritance that are essentially identical to those of a child born naturally. It is important to understand that after a kid has been adopted, they no longer have any inheritance rights over their biological family. However, if they buy a property before adoption, that property will remain solely in their name even after it is finalized.
Conclusion
After the passing of a close one, a person’s heirs are responsible for examining the decedent’s assets to ensure that none of them is burdened by any debt. After it has been shown that the successor is entitled to the property, the successor must submit a petition for the property to be renamed in his or her name. The formal records are changed when a mutation occurs, but it does not fulfil the role of a title transfer. Once a person has obtained the property, they can either reside there, lend it out, or sell it.
Where there is no Will, the Indian Succession Act lays out the rules for intestate succession, which is how the heirs are chosen where there is no Will. It’s important to note that vesting occurs under personal law, which is distinct for Hindus (often different for Sikh, Buddhist, and Jain), Muslims, and Christians who inherit a decedent’s wealth.
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Author: Niti Gupta
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