When you don't leave a will ::Business Line

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Assets may not be apportioned to beneficiaries in the manner one desires.

If a Hindu dies without a will, all the assets acquired by him will be equally shared by his legal heirs as per Hindu Succession Act 1956.

For inherited assets, his share alone will be equally divided by the legal heirs. But this will not be applicable to Christians and Muslims, as they are subject to different inheritance laws.

INTESTATE

What happens if one fails to write a will?

Assets may not be apportioned to beneficiaries in the manner one desires.

For instance, in bequeathing property, one may want to give special attention to children who are not well-settled in their life. If a will is written, such heirs may be given a higher share than those better off. But if one dies without a will, the property will be equally shared among the legal heirs.

In such a case, where family members are willing to relinquish their share in favour of a beneficiary, they can do so by executing a relinquishment deed.

Take another case where an individual has aged parents, spouse, a son and daughter and dies without leaving a will. As per the Hindu Succession Act, the assets are equally shared between mother, spouse, son and daughter. The father is not eligible for any share.

SUCCESSION CERTIFICATE

What should beneficiaries do if an individual dies intestate? They should apply for a succession certificate from the Court for distributing the assets such as shares, fixed deposits and other financial assets.

Bankers say that they insist on a death certificate, legal heirship certificate, affidavit and indemnity to transmit or to repay the deposits to one of the legal heirs, provided he has been authorised by the other legal heirs.

If there is any rival claim or dispute, then succession certificate is insisted upon.

In case of equity shares, if legal heirs want their respective share, companies will transfer equity shares accordingly.

The succession certificate is, however, mandatory in cities such as Chennai, Kolkata and Mumbai.

In case of immovable assets, legal heirs can share the assets equally among themselves.

But where a Hindu investor has dependents — both male and female heirs specified in the Act and his or her property includes a dwelling-house wholly occupied by his/her family, then female heirs cannot claim partition of the dwelling-house until the male heirs choose to divide their respective shares.

Overall, given the complex nature of laws that come into play when a will isn't in place, it may be wise for an individual to write a will, to ensure the heirs enjoy the fruits of inheritance.