Definition
Will and Succession
A will is a legal document specifying how a person's assets should be distributed after death; in its absence, assets pass per applicable succession laws, often causing delays and disputes.
A will lets you decide who inherits your assets — investments, property, bank balances — and can name an executor to carry out your wishes. A clear, properly executed will reduces ambiguity and family disputes after death.
Without a will (intestate), assets devolve according to the succession law applicable to the person, which may not match their intentions and often involves lengthier legal processes for heirs to claim assets.
Estate planning — combining nominations, a will and, for some, trusts — ensures your financial legacy passes efficiently. Keeping the will updated after major life or asset changes is important.
Related terms
- Cost of Acquisition (Gift/Inheritance)When an asset is received as a gift or inheritance and later sold, its cost of acquisition for capital gains is generally taken as the previous owner's cost, with the holding period also carried over.
- HUF (Tax Entity)A Hindu Undivided Family is a separate tax entity recognised under Indian law that can hold assets and income and enjoy its own basic exemption and deductions.
- Nominee vs Legal HeirA nominee is the person authorised to receive an asset on the holder's death as a trustee, while legal heirs are those entitled to ownership under succession law; the two can differ.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.