POSTED BY April 23, 2012 COMMENTS (175)ON
There are 3 ways one can pass on his wealth to someone – joint accounts, nomination and Will. A lot of people do not know which one is more powerful than the other and when to use which one. Today let’s discuss a few points about joint accounts, nominations and will and some scenarios which will make them clear.
1. Not understanding what a joint account means
If you want to make sure that after your death, your wife operates the account without any problem, then don’t just make her the nominee, better make her a joint account holder in the bank account itself.
If you choose “either or survivor” mode, she will be able to transact and do things along with you. But remember that when you make her a joint owner, she is the owner of 50% part only. If something happens to you, she will not automatically get your 50% share. It will be divided as per your WILL or will be divided as per succession laws.
2. Forgetting about old joint holders
A lot of people have joint accounts with their father, mother, brother etc years back, but now they want to pass on their wealth to their children/wife on their death, so they put their names in the nominee and also write a WILL (for full proof documentation), but once they die, the nomination and WILL be of no use, because there is still a joint account holder and their share cant be touched. So better change the joint account holder if you wish to pass on that part to someone else in the family.
3. Not changing Old nominations and WILL
A lot of people do not change the nominations of their bank accounts, mutual funds, or life insurance policies due to laziness, someone else is on the nominee list, but they want to transfer the asset to someone else. A lot of people think that making a WILL is the final solution, but in real life, there can be complications. What if the nominee and the person mentioned in a WILL are different? The nominee can take out cash from the bank or do some transactions. Then the legal owner will have to run from pillar to post to claim that money back and do all the legal work. See this classic issue of forgetting about the WILL
Hi , I am facing a big issue .. My husband had written a WILL long back stating that all the wealth should go to his brother after his death, but this happened years back, when we were having a lot of issues in marriage and fights, but after that everything was fine and things were on track. But seems like my husband never wrote another WILL after that and didnt change the WILL. He died recently in an accident and now his brother has claimed all our property and bank balance because of that WILL . What can I do ?
Truly speaking, This lady can’t do anything … her husband was ignorant about these things and now she will pay for his mistakes!
Joint Accounts, Nominations and Wills are all ways to pass on your wealth to someone else once you die, so it is very important that you structure these in the best possible manner. Have consistency in all these 3 things. If you pass on your money to a person better open an account or buy the asset along as a joint owner, make sure you put his name as the nominee and also make sure that the WILL is written with clear directions.
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