Drafting a will — CFP EPS — Trustner Academy

A will is a legal document specifying how assets pass on death. CFPs must understand what makes a will valid, how to draft a comprehensive one, and the registration/probate process. This sub-module covers the legal mechanics.

Foundation

Components of a valid will: • Testator (person making will): must be 18+, of sound mind • Witness signatures: 2 witnesses (not beneficiaries) with their names and addresses • Specific bequests: clear identification of assets and beneficiaries • Executor: person responsible for administering the will • Date and signature: testator signs each page or at the end Key requirements: • Voluntary (not under duress) • Mental capacity at time of signing • Clear language (avoids interpretation disputes) • Witnesses present at signing Will remains valid until revoked or replaced.

Deep Dive

Will structure (typical Indian will): 1. Personal details: name, age, address, religion 2. Declaration of capacity and revocation of previous wills 3. Appointment of executor(s) — typically 1 family member + 1 outside 4. Specific bequests: property by property, asset by asset • "I bequeath my flat at [address] to my daughter [name]" • "I bequeath my LIC policy [number] to my son [name]" • Etc. 5. Residuary clause: catch-all for assets not specifically mentioned 6. Special instructions: charitable bequests, family trust formation, etc. 7. Powers and duties of executor 8. Witness statements and signatures Probate: court process for proving validity of will. Required for: • Real estate transfers in some states • Bank/MF transfers above certain thresholds • When will is challenged Probate cost: 0.5-3% of estate value typically (varies by state).

Worked example

Worked example — Mr. Reddy's will draft Mr. Reddy, 60, Hindu, retired bureaucrat, ₹4.5 cr net worth. Wife Lakshmi, 56. Two adult children: son Rajesh (32, settled), daughter Priya (28, doctor). Proposed will structure: Clause 1 - Identity and capacity declaration Clause 2 - Revocation of previous wills Clause 3 - Appointment of executors: • Executor 1: His brother Mr. Sharma (younger, financially knowledgeable) • Executor 2: His Chartered Accountant (outside, professional) Clause 4 - Specific bequests: • Primary residence (apartment): to wife Lakshmi for lifetime; thereafter to children equally • Investment property (shop in Bangalore): to son Rajesh • Investment property (Pune flat): to daughter Priya • Mutual fund corpus: 50% to Lakshmi, 25% each to Rajesh and Priya • Bank deposits: split across Lakshmi (50%), Rajesh (25%), Priya (25%) • LIC policies: as per nominees (no override) • Personal belongings + family heirlooms: specifically listed Clause 5 - Charitable bequest: • ₹10 lakh to specified charitable trust Clause 6 - Special instructions: • Digital accounts (passwords stored separately) • Funeral wishes Clause 7 - Witness signatures (2 witnesses, both not beneficiaries) Mr. Reddy signs each page; both witnesses sign at the end. Will is registered at Sub-Registrar office (Indian Succession Act). Cost: ~₹15K (lawyer + registration). Result: clear distribution, minimal disputes, smooth post-death transition.

Real-world scenario

Real-world scenario — Mrs. Iyer's outdated will Mrs. Iyer drafted a will in 2005 (when she was 40). She has not updated it. 2005 will provisions: • Husband sole beneficiary of all assets Life since 2005: • Husband died in 2015 • Mrs. Iyer remarried in 2018 (Mr. Mehta) • Two children from first marriage (now adults) • Inheritance from her own parents (received 2020) • New investments: ₹2 cr equity portfolio, ₹50 lakh real estate If Mrs. Iyer dies today: • 2005 will names deceased husband sole beneficiary • Will is invalid because primary beneficiary is dead • Estate goes to intestate distribution • Hindu Succession Act applies • Class I heirs: current husband (Mr. Mehta), 2 children → equal 1/3 each • But: Mr. Mehta is second husband; family disputes likely If she had updated will: • Could specify: ₹1 cr to husband Mr. Mehta, rest divided equally to her children, with charity bequest, etc. • Avoid family conflict • Her own children's expectations clarified Lesson: wills must be reviewed at major life events. CFPs should ask clients annually: "any changes you want to make to your estate plan?"

Advanced

CFP best practices for will drafting: • Always work with a lawyer for will drafting (CFPs typically don't draft) • Coordinate will with overall estate plan (trust, gift planning) • Update at major life events (birth, death, marriage, divorce) • Multiple witnesses ideal (some can pre-decease) • Executor: 1 family + 1 outside (e.g., trusted lawyer or accountant) Common errors: • Vague language ("to my children equally") leaves room for dispute • Missing residuary clause: undeclared assets distribute by intestate law • Using same witnesses across multiple wills (impractical) • Forgetting to include digital assets (crypto, social media accounts) • Not addressing pets, family heirlooms, or sentimental items Digital wills: emerging area. Indian law not fully clear yet. Best practice: include digital asset references in physical will. Special situations: • Joint will: spouse + spouse (rare; separate wills generally better) • Mutual will: contractual agreement between two parties • Living will: medical directives for end-of-life decisions

Regulatory references

Indian Succession Act 1925 (will provisions)
Hindu Succession Act for Hindu wills
Muslim Personal Law for Muslim wills (with 1/3 limit)
Stamp Act for execution and registration

Common mistakes & pitfalls

Outdated wills (drafted 20+ years ago).
Vague language causing interpretation disputes.
Missing residuary clause.
Witnesses are also beneficiaries.
Lost original will.

Frequently asked

Do I need a lawyer to draft a will?

Strongly recommended for anything beyond very simple. For ₹15K-50K, you get proper legal language, comprehensive coverage, and reduced dispute risk. CFPs typically don't draft wills but coordinate with lawyer.

Where should I keep my will?

Multiple secure copies: bank locker, with executor, with CA/lawyer. Original signed copy ideally with executor. Inform key family members of location.

How often should I update my will?

At every major life event: marriage, divorce, child birth, death of beneficiary or executor, major asset acquisition, change in family circumstances. Annual review is good practice.

Practice questions

Click each question to reveal the answer and explanation.

Q 1

A valid Indian will requires:

(a)Government registration
(b)2 witness signatures (not beneficiaries) + testator signature
(c)Notary public
(d)Digital signature

Correct: (b) 2 witness signatures (not beneficiaries) + testator signature

Valid will: testator signs + 2 witness signatures (witnesses cannot be beneficiaries). Registration optional. Notarisation not legally required.

Q 2

Probate is required when:

(a)Always
(b)Required for certain large transfers (varies by state and asset type)
(c)Never required
(d)Only for foreigners

Correct: (b) Required for certain large transfers (varies by state and asset type)

Probate requirements vary by state and asset type. Some states require probate for real estate transfers; others don't. MFs and bank deposits sometimes need probate above thresholds. Lawyer can guide.

Q 3

A will's executor:

(a)Receives the entire estate
(b)Administers the will according to its terms
(c)Has unilateral power to modify will
(d)Is not necessary

Correct: (b) Administers the will according to its terms

Executor: administrator of the will, ensures distribution according to terms. Powers limited by will's instructions. Compensation typically specified in will.

Q 4

A will is invalid if:

(a)It's handwritten
(b)Witnesses are also beneficiaries OR testator was not of sound mind
(c)It's not registered
(d)It's 30 years old

Correct: (b) Witnesses are also beneficiaries OR testator was not of sound mind

Witnesses must NOT be beneficiaries. Testator must be of sound mind at time of signing. Wills not registered are still valid; old wills are valid until replaced.

Q 5

A residuary clause:

(a)Is illegal
(b)Catches all assets not specifically bequeathed
(c)Cancels the will
(d)Requires court approval

Correct: (b) Catches all assets not specifically bequeathed

Residuary clause: "any other assets not specifically mentioned shall go to [person]". Catches assets acquired post-will-drafting or overlooked. Without it, undeclared assets go intestate.

Educational purposes only. The numbers, returns, and examples used in this lesson are illustrative. Past performance does not guarantee future results. Mutual fund and securities investments are subject to market risks. This lesson is not investment advice; for advice tailored to your circumstances, consult a SEBI-registered Investment Adviser. Read our full disclaimer.