Sathya Sai Baba had no will; Sathyajith has no membership in the trust; and the Sathya Sai Baba Central Trust will soon have a new chairman -- these are some of the points that have cropped up during the ongoing press conference of the trust at Puttaparthi a day after the spiritual leader was laid to rest.
Trust members on Thursday clarified that Sathya Sai Baba had left behind no will. They stated that the spiritual leader always maintained that he did not have a single rupee to his name and that all the assets are property of the trust; hence he could write no will.
Regarding the trust's cheque signatures, the trust said that only Sathya Sai Baba had the power to sign them. The future course of action on this aspect would be decided in the trust's next meeting.
With regard to the controversy surrounding the trust that they had tried to hide details about the spiritual leader's treatment, trust members clarified that the allegations were far from true.
The family members were allowed inside the hospital and they have personally witnessed Baba undergoing treatment, the trust said, adding that there is no confusion on that and the members of the family too have not disputed that.
The trust also went on to add that they were upset with the manner in which some sections of the media had been defaming the trust.
We are contemplating legal action against all those media who have defamed the trust and floated stories about us, members said.
Dismissing rumours about a freezer (to preserve Sathya Sai Baba's body) being ordered prior to the spiritual leader's demise, on April 4, the trust clarified that the order was placed only after Baba passed away.
Regarding the birth of Baba's next incarnation, the trustees said the spiritual leader had not given any specific date for the birth of Prema Sai Baba.
With regards to Sathyajith, the trustees have made it clear that he was not a member of the trust and that there was no plan at the moment to bring him on board.
Further, it was also said that Chakravarthy, the IAS officer who joined Baba a couple of years ago, is only a secretary and not a member of the trust.
Baba's nephew Ratnakar who is a trustee made it clear that the trust will function as per the wishes of Baba and that he had no disputes with Sathyajith as has been reported in the media.
He has said that they would need some time to elect a new chairman (post held by Baba) and assured that the trust would function well.
Justice P N Bhagavathi, former Chief Justice of India who is a member of the trust, had indicated that prior to the press conference that Baba had not appointed any successor.
He had also made it clear that there was no difference of opinion between the trust and Sathya Sai Baba's family members.
Thursday, April 28, 2011
Saturday, April 16, 2011
Books for will making in india
Valid Wills And Succession Planning
Publisher: Vision Books (2005)
Tax And Succession Planning Through Trusts And Wills
Publisher: Vision Books (2008)
If Theres No Will, Theres Still A Way
Its best to have a will in place, but if there isnt one, certain documents can make up for its absence
SAKINA BABWANI
The death of a loved one is the most dreaded thing that can happen to any family. It can get even more traumatic when the family realises that the deceased has not left a will behind. In such a situation, the family is usually left running from pillar to post, trying to gain access to the property which, in many cases, could be the only saviour from doom. However, according to experts, the family can still get its due even in the absence of a will, provided it can get hold of a few documents. A succession certificate and a copy of the death certificate should solve at least 95-96 % of your problem, says Sivaramakrishnan, head of legacy planning, Altamount Capital Management.
SUCCESSION CERTIFICATE
Usually, a succession certificate is the key document that you need. In the absence of a will, a succession certificate will be the primary document through which the heirs can stake a claim to the assets of a deceased relative, says Sivaramakrishnan. A succession certificate, under the Indian Succession Act, is a document that gives authority to the person who obtains it, to represent the deceased for the purpose of collecting debts and securities due to him or payable in his name. For a succession certificate, you need to apply to a magistrate or a high court. Usually, courts have a separate cell that issues succession certificates. When it comes to immovable property, there are other documents, like, for instance, a gift deed, that can help. Rajesh Narain Gupta, partner, SN Gupta & Co, says, In some states, in cases of intestate succession, property can be gifted or the share in the immovable property can be released by the legal heirs to each other. This can be done by executing and registering the gift deed or release deed with the registrar of assurances.
NOMINATIONS & DEATH CERTIFICATE
For access to the deceaseds bank accounts, the process differs slightly. If the deceased has made some nominations, then naturally, the nominees will claim the balances. If there is a nomination made by the deceased, then the nominee can claim the balances /investments based on the nomination, says Gupta. Sivaramakrishnan points out, Banks, under RBIs guidelines, are bound to pay to the nominees if the nominations had been registered with the bank. Here registration refers to a confirmation from the concerned bank. But for most people, the real problem arises when there is neither a nomination nor a will. What do you do in such a case You need a certified copy of the death certificate to gain access to the bank accounts. The banks usually look to see if the deceased had assigned a beneficiary for the account. If there is no beneficiary, then the succession rule would apply, says Sandeep Nerlekar, managing director and CEO, Warmond Trustees & Executors. Usually, the hospital or the crematorium issues the death certificate.
TRANSFER OF SHARES
As, in most case, securities form a substantial part of assets. The process of transmission in case of dematerialised holdings is more convenient as the transmission formalities for all securities held in a demat account can be completed by submitting necessary documents to the depositary participant (DP), whereas in case of physical securities the legal heirs/nominee/surviving joint holder has to independently correspond with each company in which securities are held, says Nerlekar. The claimant should also submit to the concerned DP an application in transmission request form (TRF) along with a notarised copy of the death certificate, in case of the death of the sole holder where the sole holder has appointed a nominee, he adds. Again, a problem will arise when the sole holder has not appointed a nominee. What would you do in such a case In such a case, you will need a notarised copy of the death certificate of the holder and any one of the following certificates: succession certificate: a certified copy of the will and the probate (if there is any), a certified copy of the letter of administration (if value of holding is less than. 1 lakh), says Nerlekar.
MINOR CHILDS RIGHTS
Imagine a situation where the parent of a child has died suddenly without leaving a will. What can a minor child do in such a case A minor child needs to file a case in any court or petition through a guardian under the law or a guardian appointed by the court, says Gupta. Although minors have the legal capacity to own property, they do not have legal capacity to manage it, says Nerlekar. Since minors are legally incapable of handling property, a guardian is appointed from among their relatives to manage the property. Should no one step forward to be a guardian (under the supervision of Court) on account of the fiduciary nature of the responsibility, the court may appoint a guardian and house the share of the minor with such a guardian, adds Sivaramakrishanan. The court also ensures that minors are adequately protected. If your children inherit a share of your house, your spouse will not be able to sell it, rent it out, or even refinance the mortgage without a court order. Getting court orders could be expensive and time-consuming, says Nerlekar. And when it comes to investing these assets, the court takes adequate steps to protect them as well. The court may pass additional orders to protect the interests of minors as to how the assets falling to the hands of minor are to be invested till the minor attains the majority, informs Gupta.
MUTUAL AGREEMENTS
The real problem arises when there are too many people vying for the same property. This is quite a possibility when the deceased has children, spouse as well as kin. Nerlekar says, All the heirs may not live in the same state, or they may not be able to agree on what should be done with the property. The more heirs you have, the more money and effort they will have to spend trying to get organised. In such a situation, relatives should opt for a mutual agreement, feel experts. If the specific relatives of the deceased have come to a mutual agreement as regards dividing the assets/properties of the deceased, then they may document, sign and witness and file the same to the succession court along with their application. This mutual agreement must be comprehensive and deal with all known relatives and kindred of the deceased. It cannot be prejudicial to any of the relatives/ kindred. This will greatly speed up the process of issuance of a succession certificate, says Sivaramakrishnan. But make sure you record your agreement. Gupta adds, Any such settlement is to be recorded either by way of partition deed duly registered with the sub registrar of assurances or a decree passed by the court or a settlement before the court in a judicial proceeding. However, a mutual agreement is not conclusive. A mutual agreement by itself is not sufficient. You need to get a succession certificate as well, says Sivaramakrishanan. Even though the problem has a solution, most experts are of the view that it is best to keep a will in place so that your family is saved from the hassles of getting things in order. sakina. babwani@timesgroup. com
SAKINA BABWANI
The death of a loved one is the most dreaded thing that can happen to any family. It can get even more traumatic when the family realises that the deceased has not left a will behind. In such a situation, the family is usually left running from pillar to post, trying to gain access to the property which, in many cases, could be the only saviour from doom. However, according to experts, the family can still get its due even in the absence of a will, provided it can get hold of a few documents. A succession certificate and a copy of the death certificate should solve at least 95-96 % of your problem, says Sivaramakrishnan, head of legacy planning, Altamount Capital Management.
SUCCESSION CERTIFICATE
Usually, a succession certificate is the key document that you need. In the absence of a will, a succession certificate will be the primary document through which the heirs can stake a claim to the assets of a deceased relative, says Sivaramakrishnan. A succession certificate, under the Indian Succession Act, is a document that gives authority to the person who obtains it, to represent the deceased for the purpose of collecting debts and securities due to him or payable in his name. For a succession certificate, you need to apply to a magistrate or a high court. Usually, courts have a separate cell that issues succession certificates. When it comes to immovable property, there are other documents, like, for instance, a gift deed, that can help. Rajesh Narain Gupta, partner, SN Gupta & Co, says, In some states, in cases of intestate succession, property can be gifted or the share in the immovable property can be released by the legal heirs to each other. This can be done by executing and registering the gift deed or release deed with the registrar of assurances.
NOMINATIONS & DEATH CERTIFICATE
For access to the deceaseds bank accounts, the process differs slightly. If the deceased has made some nominations, then naturally, the nominees will claim the balances. If there is a nomination made by the deceased, then the nominee can claim the balances /investments based on the nomination, says Gupta. Sivaramakrishnan points out, Banks, under RBIs guidelines, are bound to pay to the nominees if the nominations had been registered with the bank. Here registration refers to a confirmation from the concerned bank. But for most people, the real problem arises when there is neither a nomination nor a will. What do you do in such a case You need a certified copy of the death certificate to gain access to the bank accounts. The banks usually look to see if the deceased had assigned a beneficiary for the account. If there is no beneficiary, then the succession rule would apply, says Sandeep Nerlekar, managing director and CEO, Warmond Trustees & Executors. Usually, the hospital or the crematorium issues the death certificate.
TRANSFER OF SHARES
As, in most case, securities form a substantial part of assets. The process of transmission in case of dematerialised holdings is more convenient as the transmission formalities for all securities held in a demat account can be completed by submitting necessary documents to the depositary participant (DP), whereas in case of physical securities the legal heirs/nominee/surviving joint holder has to independently correspond with each company in which securities are held, says Nerlekar. The claimant should also submit to the concerned DP an application in transmission request form (TRF) along with a notarised copy of the death certificate, in case of the death of the sole holder where the sole holder has appointed a nominee, he adds. Again, a problem will arise when the sole holder has not appointed a nominee. What would you do in such a case In such a case, you will need a notarised copy of the death certificate of the holder and any one of the following certificates: succession certificate: a certified copy of the will and the probate (if there is any), a certified copy of the letter of administration (if value of holding is less than. 1 lakh), says Nerlekar.
MINOR CHILDS RIGHTS
Imagine a situation where the parent of a child has died suddenly without leaving a will. What can a minor child do in such a case A minor child needs to file a case in any court or petition through a guardian under the law or a guardian appointed by the court, says Gupta. Although minors have the legal capacity to own property, they do not have legal capacity to manage it, says Nerlekar. Since minors are legally incapable of handling property, a guardian is appointed from among their relatives to manage the property. Should no one step forward to be a guardian (under the supervision of Court) on account of the fiduciary nature of the responsibility, the court may appoint a guardian and house the share of the minor with such a guardian, adds Sivaramakrishanan. The court also ensures that minors are adequately protected. If your children inherit a share of your house, your spouse will not be able to sell it, rent it out, or even refinance the mortgage without a court order. Getting court orders could be expensive and time-consuming, says Nerlekar. And when it comes to investing these assets, the court takes adequate steps to protect them as well. The court may pass additional orders to protect the interests of minors as to how the assets falling to the hands of minor are to be invested till the minor attains the majority, informs Gupta.
MUTUAL AGREEMENTS
The real problem arises when there are too many people vying for the same property. This is quite a possibility when the deceased has children, spouse as well as kin. Nerlekar says, All the heirs may not live in the same state, or they may not be able to agree on what should be done with the property. The more heirs you have, the more money and effort they will have to spend trying to get organised. In such a situation, relatives should opt for a mutual agreement, feel experts. If the specific relatives of the deceased have come to a mutual agreement as regards dividing the assets/properties of the deceased, then they may document, sign and witness and file the same to the succession court along with their application. This mutual agreement must be comprehensive and deal with all known relatives and kindred of the deceased. It cannot be prejudicial to any of the relatives/ kindred. This will greatly speed up the process of issuance of a succession certificate, says Sivaramakrishnan. But make sure you record your agreement. Gupta adds, Any such settlement is to be recorded either by way of partition deed duly registered with the sub registrar of assurances or a decree passed by the court or a settlement before the court in a judicial proceeding. However, a mutual agreement is not conclusive. A mutual agreement by itself is not sufficient. You need to get a succession certificate as well, says Sivaramakrishanan. Even though the problem has a solution, most experts are of the view that it is best to keep a will in place so that your family is saved from the hassles of getting things in order. sakina. babwani@timesgroup. com
Nomination
Nomination is the process of appointing a person to take care of your assets in the event of your death. You can appoint a nominee for your bank account, fixed deposit, demat account, or even your house. A nominee can be a family member or a friend or any other person whom you trust. You need to choose a nominee with care as the person needs to be reliable enough to take care of your assets in the event of your death. So when you open a savings bank account, or make a mutual fund investment, there is a space which asks for the nominee details. Nomination for joint holders is permitted, however in the event of death of any of the holders the benefits will be transmitted to the surviving holders name. In the case of death of all holders the benefits will be transmitted to the nominee account. Individuals holding accounts either singly or jointly can make nomination. Non-individuals including society, trust, body corporate, karta of Hindu undivided family (HUF), holder of power of attorney cannot nominate. The nominee appointed has to be a individual only. Only one person can be appointed as a nominee. It is not compulsory to appoint a nominee for each investment of yours. However, it is in your interest that you appoint a nominee for your investment so that in the event of your death, there is no difficulty in the transfer of your assets. In case you do not appoint a nominee while making an investment, you can also do the same at alater date by filling the relevant application form and giving it to the bank or mutual fund. A minor can be a nominee. In such a case, the guardian will sign on behalf of the nominee and in addition to the name and photograph of the nominee, the name, address and the photograph of the guardian must be submitted. Though a nominee is an important person, he or she has no right over the money or assets unless that is specified under the will or the nominee happens to inherit the money. So a nominee is a mere custodian of the assets. He is a contact point for the investments. In the event of a persons death, a bank could get in touch with the nominee for further instructions to act on the account. At the time of claiming the savings, the nominee will have to give a proof of his identity to the relevant authority.
Sunday, April 10, 2011
Legal Terms in Will Making
Person: Any individual adult ie. 18 years & older of sound mind.
Testator: A person who makes the Will.
Witness: A person who attests the signature of Testator of the Will. Witnesses verifies:
Testator’s sound mind & normal situation while signing the Will and
Testator has understood the content of the Will as explained by the Witness in case the Will is made in the language not familiar to the Testator.
Note: Witness or his / her Spouse must NOT be beneficiary under the Will and if they are, s/he won’t be entitled to any such Property(ies) and such Property(ies) will fall under residual assets. Further a Witness shouldn’t be very old & possibly some years younger to you so that s/he outlive or survive you. Ideally a family Doctor or a Lawyer or a Chartered Accountant should be made Witness.
Executor: A person who executes the contents of the Will after the demise of the Testator is called the Executor. The Executor is a legal representative for all purposes of the deceased person.
Duties of an Executor:
To pay testamentary and funeral expenses.
To ascertain the assets of the deceased.
To collect the debts and assets of the deceased.
To pay the debts of the deceased.
To apply & get a Probate and
To distribute deceased Assets as per the Wish.
Legatee / Beneficiary: A person who inherits the estate mentioned under a Will.
Legacy: Declaring a gift to particular person’s name under a Will. It can be Pecuniary (in amount), Specific (particular asset) or residual (rest of the Assets).
Estate(s) / Property(ies): The sum of all the Assets of a person reduced by liabilities becomes the Estate.
Intestate: Person dies without making a Will.
Probate : A copy of a Will, certified under the seal of a competent Court with a grant of Administration of the Estate to the Executor/s of the Testator. Probate is conclusive as to the representative title of the Executor. Probate cannot be granted until the expiration of seven days from the date of the Testator's death.
Letters of Administration (LoA): A letter granted by a competent Court in the event a person dies Intestate or a Will does not name any Executor/s or Executor/s appointed by a Will doesn’t take the responsibility. LoA cannot be granted till the expiration of fourteen days from the date of the Testator's death.
Testator: A person who makes the Will.
Witness: A person who attests the signature of Testator of the Will. Witnesses verifies:
Testator’s sound mind & normal situation while signing the Will and
Testator has understood the content of the Will as explained by the Witness in case the Will is made in the language not familiar to the Testator.
Note: Witness or his / her Spouse must NOT be beneficiary under the Will and if they are, s/he won’t be entitled to any such Property(ies) and such Property(ies) will fall under residual assets. Further a Witness shouldn’t be very old & possibly some years younger to you so that s/he outlive or survive you. Ideally a family Doctor or a Lawyer or a Chartered Accountant should be made Witness.
Executor: A person who executes the contents of the Will after the demise of the Testator is called the Executor. The Executor is a legal representative for all purposes of the deceased person.
Duties of an Executor:
To pay testamentary and funeral expenses.
To ascertain the assets of the deceased.
To collect the debts and assets of the deceased.
To pay the debts of the deceased.
To apply & get a Probate and
To distribute deceased Assets as per the Wish.
Legatee / Beneficiary: A person who inherits the estate mentioned under a Will.
Legacy: Declaring a gift to particular person’s name under a Will. It can be Pecuniary (in amount), Specific (particular asset) or residual (rest of the Assets).
Estate(s) / Property(ies): The sum of all the Assets of a person reduced by liabilities becomes the Estate.
Intestate: Person dies without making a Will.
Probate : A copy of a Will, certified under the seal of a competent Court with a grant of Administration of the Estate to the Executor/s of the Testator. Probate is conclusive as to the representative title of the Executor. Probate cannot be granted until the expiration of seven days from the date of the Testator's death.
Letters of Administration (LoA): A letter granted by a competent Court in the event a person dies Intestate or a Will does not name any Executor/s or Executor/s appointed by a Will doesn’t take the responsibility. LoA cannot be granted till the expiration of fourteen days from the date of the Testator's death.
How to make a Will
How to make a Will:
A Will needs to be written / typed (preferred) on a piece of paper expressly state that it's your will. It requires no stamp duty or registration.
Will can be made in standard format and doesn’t require expert’s help unless you have complex family structure and/or asset class.
Who can be your Beneficiaries :
1.Your immediate family members (spouse & child(ren)) | Living Partner,
2.Your Parents & Siblings,
3.Your Other distant family members,
4.Your Friends,
5.Charity Organization or
6.Any other living things
You can leave what you have to anyone. You can leave family members out of you Will but if you do not provide reasonable support to the one who are dependent on you, your Will can be challenged by an application to the Court.
When to make &/or update and When it is effected:
You should make a Will as soon as you attain 18 years of Age and you have Assets in your name. Further you can change your Will as many times as you want by making a fresh one and only the last dated Will will prevail.
Your Marriage / Divorce, Beneficiary Death, Birth / Adoption in family / friends, Change in major asset/s, Change in lifestyle, etc. needs to be considered while making / updating your Will.
Will come into effect only after the death of the person who has executed the Will.
Where to make Will :
You must make a Will in the country you & your family normally reside.
You can have only ONE domicile.
You can also consider the country / domicile wherein majority of your Will’s Beneficiaries and/or the Property(ies) are.
A Will needs to be written / typed (preferred) on a piece of paper expressly state that it's your will. It requires no stamp duty or registration.
Will can be made in standard format and doesn’t require expert’s help unless you have complex family structure and/or asset class.
Who can be your Beneficiaries :
1.Your immediate family members (spouse & child(ren)) | Living Partner,
2.Your Parents & Siblings,
3.Your Other distant family members,
4.Your Friends,
5.Charity Organization or
6.Any other living things
You can leave what you have to anyone. You can leave family members out of you Will but if you do not provide reasonable support to the one who are dependent on you, your Will can be challenged by an application to the Court.
When to make &/or update and When it is effected:
You should make a Will as soon as you attain 18 years of Age and you have Assets in your name. Further you can change your Will as many times as you want by making a fresh one and only the last dated Will will prevail.
Your Marriage / Divorce, Beneficiary Death, Birth / Adoption in family / friends, Change in major asset/s, Change in lifestyle, etc. needs to be considered while making / updating your Will.
Will come into effect only after the death of the person who has executed the Will.
Where to make Will :
You must make a Will in the country you & your family normally reside.
You can have only ONE domicile.
You can also consider the country / domicile wherein majority of your Will’s Beneficiaries and/or the Property(ies) are.
Who can make a Will
(YOU as you're reading this article means you're of sound mind.)
Following individual residing or connected with India can make a Will:
Such individual is adult ie. 18 years or older and
Such individual is of sound mind ie.
know what a Will is,
understand the relationship with beneficiaries
understand what property(ies) are owned and
able to decide the distribution of the property(ies).
Following individual residing or connected with India can make a Will:
Such individual is adult ie. 18 years or older and
Such individual is of sound mind ie.
know what a Will is,
understand the relationship with beneficiaries
understand what property(ies) are owned and
able to decide the distribution of the property(ies).
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