GIFT OR WILL – decide prudently.

        

                 People who follow my blog regularly know that I often write about making a Will. Today, I will attract your attention to a situation which may arise even in our lives. Before getting to the subject, we will need to know few things. 

A Will is a Legal declaration of the intention of the Testator (maker of the Will) which he desires to be carried into effect after his death. Thus, the ownership (title), rights & interest over the property lies with the Testator during his life span. “Will” shall come into effect after the death of Testator.

On the Contrary, a Gift wherein the Ownership along with rights & interest are transferred instantly to the Donee (person to whom property has been transferred). After such transfer Donor (the person gifting his property) does not have any Rights, Title (ownership) & interest over his gifted property in his life span. Gift takes into effect instantly after the acceptance of the gift by Donee.

Family disputes are peculiar. They are bitter, and, almost always, messy.

Mr. Agarwal is a renowned person,an Industrialist with wealth running in thousands of crores . Under his Leadership, his group of industries saw the zenith of its success. Though this Family was always engulfed in family disputes, this didn’t hamper the growth of their business empire.

In his old age, Mr. Agarwal took a bold decision to relinquish the entire 40% of his share in his group of companies in favor of his son Mr. Akash Agarwal.

This was a turning point in Mr. Agarwal’s life. He then filed a petition in the Court. Today, he has neither a car nor a driver. Mr. Agarwal now lives in a rented house. He had been deprived from the possession of his mansion too. He is now blaming his son for his present circumstances. He claims that two of his employees who handled his property and bank documents and personal files had gone missing. Access of any of such documents is no more possible.

The wise people say an intelligent person learns from the mistake of others. Let us peel the onion to get to the bud.

In this case, a very wealthy man relinquishes his rights to his son when he is still alive. What can be the reason for such an act? The reason can be many. A reasonable mind might think it is for the love of his son or for the faith in his son’s love and dedication for him or was it an act with a business move wherein he wanted to secure all his wealth from going to other hands by giving it to his younger son.

Whatever drove him to do this act, it resulted in great misery for him.

What was the reason for such misery? Again, the reasons could be many. The greed of his son for money superseded his love for his father or was the entire act of his father a previously plotted conspiracy or was it a bad influence on the son.

Though all of us are not as wealthy as Mr. Agarwal but surely possessions are no less dear and important to us. From the above facts, the following points cross our minds:-

1.      Gifting wealth to the next generation does not solve family dispute of previous generation;

2.      Gifting relinquishes all rights, title & interest of your property during your life time. That means after gifting you have no right over the property.

So, the ideal way to transfer such rights “THROUGH A WILL.”

Advantages of doing so through a Will-

1.      All your rights, title and interest over the property will be enjoyable during your life time. Such rights are transferred only after the demise of the Testator (maker of the Will).

2.      In a Will, you can still give your wealth to the person you desire just like the gift.

3.      Will has the option of depriving the legal heirs entitled to your wealth by giving valid reasons.

GIFT OR WILL – decide prudently.

Thanking You.

Wishing you a long & healthy life.

We celebrate your success in life.

Let’s add the awesomeness in our lives.

To know more, please visit www.dilsewill.com

Author: Legal Executive Officer at DiL SE WiLL

To know more, please contact us www.dilsewill.com

This blog is informative in nature and created for pro bono purpose, it is not a legal advice. For any legal assistance, please do contact us at www.dilsewill.com or call us 033 4006 9589.