Managing incapacities and sudden death – Part III

This is part-III of Precautions to protect assets after death.

Leaving behind instructions to handle incapacities
medicaid-nursing-home-coverageA closed cover noted as confidential stating name and date could be kept along with will or given to a close relative or a friend after briefing the need for such requirements with a note on the following lines:
1. If I am unconscious or critically ill and revival will make me immobilized, I do not wish to be under invasive Medical / life support such as pacemaker, ventilator, but wish to leave this world naturally and peacefully. (Please do not institute any resuscitation measures).
2. In case of my suffering due to dementia I authorize Mr………………..( my son /brother-in-law/daughter/wife) to take decision on my behalf and I authorise him/her to operate my bank account and also act as my attorney to dispose /realize my assets.
Note: Your personal medical advisor may be consulted to frame the wordings to cover the content of above instructions to match the medico-legal requirements of the hospitals.

Instructions to handle sudden death:
The following important areas need to be covered and documented which should assist as a ready reckoner or a guide to the successors/ family members in managing the affairs on sudden death.
Persons above sixty years or with health problems are advised to prepare a Document/Ready Reckoner of Instructions and a format is suggested as follows:-

INSTRUCTIONS RECOMMENDED FOR EFFECTIVE MANAGEMENT OF AFFAIRS

IF I WERE TO DIE SUDDENLY

 

NAME  PLACE
ADDRESS  DATE
CONTACT NO  LAST UPDATED ON
EMAIL I.D.

 

 

Sl No Subject matter Issue Involved Remarks Annexure
1. WILL I have got my will registered Document no and date ofregistration I
  I have not made any will  
2. ASSETS  
a. Immovable Residential house at… (Location) Door No.; purchase document no. II
Vacant land at …….(Location) Purchase document no. II
Let out property at …. (Location) Door No.; purchase document no. II
Details of tenants  
b. Movables Fixed deposits, shares and securities,SB account, Vehicles, LIC polices

Pension details , Bank Locker etc

 

Please see details in Annexure III(Nomination is important) III
c. Liabilities Bank loans, housing loan, private loans Please see details in Annexure IV IV
3. Family Members Spouse, children, grand children Give name and age of the membersas on the date of preparing

this note

V
4. PROFESSIONALS REFERRED Family doctor/ specialistlawyer/ auditor/ family priest Give name and contact number VI
5. CLOSE FRIENDS AND RELATIVES Give List with address and phone numbers VII
6. SAFE CUSTODY OFDOCUMENTS

Location of locker , place of keeping valuables, financial instruments FDs shares etc, personal IT records LIC policies

Locker no and bank, location of the locker/ almirah in the house and the place where the keys are kept usually to be indicated Please take out a schedule of description to serve as a guide for the persons after demise VIII
7. RELIGION/WORSHIP places of worship Give the name of temples/ church which are being frequented periodically or is there any pilgrimage centers visited or any vow/wish which are not fulfilled IX
8. ATHEIST give details of the funeral/ rituals you wish your successors to follow Give details of your assets givento others or other assets in your

possession

IX
9. CONFIDENTIAL Any other Private lending or borrowing without any legally enforceable record. Have you made any promise of support/cash award/ donation to any-one not covered in the will Give the name ofI.Relatives, II. Staff, III. Servants

and the amount you may wish to be paid. Give details of persons from

whom there is dealing

X
10. ASSETS IN OTHERS’ CUSTODY Give details of your assets givento others or other assets in your

possessions

X
11. WISH NOT COVERED IN THE WILL How to dispose off the body give details for reference  
whether eyes/ liver/ kidneys are donated Give details of documents / declarations signed and their custody XI
12. OBITUARY How you wish to publicize after demise Which paper, which photo, what contents, Details of the order in which obsequies to be conducted. XII
13. ANY COURT CASE What is it about How to continueAny other information like Advocate in custody of records XIII
14. ANY UNFINISHEDPROJECTS/PROGRAMME Is there any Building/ House /Marriage of children pending What you wish to state  
15. ANY CHILDREN WITHPHYSICAL OR MENTAL

DISABILITY

Names What provision or security you wish to provide them  

 

 

DATE

 SIGNATURE

 

Note – Just as will is done and reviewed/ remade, the above data can be periodically reviewed and redone. When the details and data is captured in the computer, updation becomes a simple exercise. A closed cover noted as confidential stating name and date could be kept along with will or given to a close relative or a friend after briefing the need for such requirements with a note.

Precautions to protect assets after death – Part II

Continuing from Part – I.

Compliance-ChecklistPlease prepare a checklist on first of January or first of April each year of various due dates for compliance and prevent any omission/loss/ inconvenence. This will not only help keep track of your compliances as you advance in age, it will be of use for your
successors/relatives to take care of the responsibilities linked to assets in a systematic manner.
Note: One can include additional items to suit family/personal/business/official and other requirements.

S.No Description Due Date Date of compliance
1 Payment of LIC Premium
2 Advance Tax/TDS payments
3 Filing of IT return
4 Renewal of Mediclaim policy
5 Payment of vehicle insurance
6 Renewal of driving license
7 Renewal of Passport
8 Payment of SAS (Property Tax)
9 Renewal of membership
10 Annual Health Checkup
11 Renewal of licenses

Source: The above article is Published in the Journal of August 2014 by Kanara Chamber of commerce & Industry

Precautions to protect assets after death – I

last-will-and-testamentDeath is certain. When an individual dies suddenly, the family members will have to face problems if the individual, in anticipation of death, has not taken precautions and made arrangements to settle his affairs. While appreciating the inevitable truth that Death is certain, one also needs to understand and execute his responsibilities in anticipation of the event in the best interest of his loved ones and dependents.

Death could occur suddenly by accident, heart attack and so on or a person could become incapacitated, unconscious and unable to speak or function. While we pray that such a situation should not come to anybody, every prudent person should take precautions to explain all his ideas, position of assets, relationship with family members, financial details and other vital information and inform his family members and close friends so that the affairs and assets are properly managed. This responsibility is beyond writing a clear, complete and legally valid Will. Despite the will, there are likely situations that the successors, being unable to know details and whereabouts of assets, tend to lose the wealth and land in unwarranted hardships. What was earned and saved becomes waste! In the hours of death and grief, they would also be facing unwarranted difficulties due to lack of information and instructions in management of affairs. To overcome such avoidable consequences the following suggestions are being shared.

A. BEING ORGANISED IN PERSONAL AND FINANCIAL MATTERS:
It is in your best interest to follow the following points in order to keep your personal financial and legal compliance matters in an organized manner:-

a) All investments in FD, NSC, LIC policies, Bonds, Shares etc., are to be held in joint names and nominations are to be made for all such investments. It is also advisable to maintain photocopies of the documents along with an Investment Register being kept up-to-date as and when the investments undergo changes.

b) Keep a ‘Notarised’ photocopy of all the documents of immovable property. The original title deeds are to be carefully preserved. If they are very old or inherited take steps to get the name of legal representatives / beneficiaries in the revenue records. Obtain a legal opinion and keep the same along with the original title deeds to avoid difficulty in disposal because the rules and regulations are changed periodically and the same can be taken care of in time under advice of a competent advocate.

c) If there are immovable properties owned, please get the will registered with the help of an advocate. If the will is written in the handwriting of the testator the bonafides of the will cannot be disputed by the legal representatives. Please confirm that such handwritten will bears date and signature of the testator and two witnesses. It is advisable to choose family doctor and another person known to the family as witnesses to the will. Younger person as witness is preferred. Witness should be of good integrity to stand by the will if such need arises.

d) To avoid litigation for succession by questioning the will, Settlement of property retaining the life estate is advisable. Stamp duty for such instrument is at a concessional rate in some states.

e) A person living in isolation without spouse or issues will have to plan properly the disposal of  their assets and belongings in advancing age and when they fall sick or have irreversible health problems.
f) Make it a practice to keep all important documents, title deeds of property, jewellery, FDs, Shares, Deeds, LIC policies other financial instruments and valuable assets in a safe place and periodically brief about the same to the close persons in the family.

g) If adequate precaution is not taken to enable the successors/beneficiaries to realize and enjoy the hard earned wealth, time and energy will be wasted in litigation besides delay in encashment of investments.

 

Source: The above article is Published in the Journal of August 2014 by Kanara Chamber of commerce & Industry