Moneylife Events
Will: Why it is important to write and register a Will
Adv Bapoo Malcolm, while speaking at a workshop organised by Moneylife Foundation, discussed mechanics of preparing a Will, registration and explained litigation possibilities, witnesses, executors, intestate problems, adoption problems
 
In an interactive session at Moneylife Foundation, Advocate Bapoo Malcolm explained to a packed house the practical aspects of making a will and importance of registering your own Will. This was Adv Malcolm's fifth session on Wills at Moneylife Foundation. 
 
Mr Malcolm, advocate, Bombay High Court, a man of many interests and the speaker for the workshop, covered issues related to Wills, like registration, litigation possibilities, witnesses, executors, intestate problems and adoption. He also discussed types of wills, including privileged wills, joint wills and holographic wills.
 
Talking about Wills, the well-experienced lawyer in both civil and criminal matters, said, “A Will can be made by any person who is not a minor and who is of sound mind. You need two witnesses, preferably independent of each other. The Will must list all the immovable and movable properties you own, and who you wish to will them to after your death. However, remember, you can only bequeath what belongs to you and what is self-earned; otherwise the distribution is governed by various Succession Acts."
 

Adv Malcolm, then explained the technicality of the subject - testators, codicils, executors, probates, administrators and the various succession acts - with real-life examples that elucidated the complicated topic of wills to the audience. 
 
Explaining the simplicity of creating a Will, Adv Malcolm said, “A Will is a simple document to be written in simple language. Preferably, avoid legalese. You simply have to give specific instructions about what has to be done with the movable and immovable properties you own and the property you might acquire in future. It would be best if it reads like a balance sheet. Just specify the property and the person. A Will should be legible and clear to understand."
 
The religion of an individual matters for succession under the Hindu Succession Act, Muslim personal law, Parsi personal law, Christian law and for others by default under the Indian Succession Act. Each category has different tables for arriving at legal heirs in the absence of a will. 'Hindu' has a broad meaning because anyone who is not Muslim, Christian or Parsi is categorised under the 'Hindu' category, he added.
 
A Will needs to be clear and concise, leaving no room for misinterpretation. “A Will would be interpreted according to the word of the law, which may not assign the same meaning as you intended.” 
 
For example, while mentioning names it is important to specify the relationship along with the date of birth of the person, as there could be common names. In addition, if you wish to intentionally leave someone out of your Will, especially, if it is a close family member, it is better to mention the name in the Will. If not, the person may contest the Will by saying you have forgotten his/ her name, Adv Malcolm explained.
 
While preparing a Will people are often left confused about its registration. Clearing the doubts and misconceptions about Wills, Adv Malcolm, said, “The government does want to encourage people to make Wills, so they haven’t made it compulsory to register a Will. You can even make a Will on a serviette. So long as the basic requirements are fulfilled, the Will is legal. Registration is a grey area, mainly because if you then wish to make a second Will, you may not have the time to register it. If you realise the day you die that a relative is useless, you may not be able register this second Will. Then, does the unregistered Will have more value than the registered one? An unregistered Will could easily be lost; however, registration takes care of the safety issue. At least, if it is registered, you know that it is always in some government ward.”
 
He then explained about probate, which is validation of a Will by the Court. "Probate is required only in Presidency States of Bombay, Chennai, Kolkata and only within their jurisdiction only for immovable property. Companies prefer to recognize Wills that are registered or sometimes require a probate. In addition, transmission of immovable property also usually requires a probate," he added.
 
Adv Malcolm then explained Trust, which is used for complex bequests and special cases. He said, "A Trust can be registered under the Indian Trusts Act. You can transfer funds and property to the Trust, which becomes the holding vehicle. Trustees manage the Trust as per the Trust Deed. You can access and control assets while alive and decide on distribution too. A Trust protects your assets from probate."     
 
Citing several examples, Adv Malcolm also explained several things that need to be avoided while preparing a Will.
 
Adv Malcolm also answered the queries of Moneylife Foundation members who raised their doubts.

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Nifty, Sensex rally may pause – Weekly market report

Nifty uptrend may continue as long as it manages to stay above 8,355

 

We had mentioned in last week’s closing report that Nifty has to close above 8,390 for the first confirmation of a new upmove. Nifty stayed above this level throughout this week and closed at 8,609.85, up 2.98% from the last week’s closing. On Friday, Nifty opened at 8,623.65, touched a high of 8,642.95 and a low of 8,593.15 before closing at 8,609.85. The S & P BSE Sensex closed this week at 28,463.31, up 3.0%. The Sensex opened Friday at 28,480.92 and touched a high of 28,576.32 and a low of 28,417.46. The Bank Nifty closed this week at 19,094.70, up 2.0%. On Friday, Bank Nifty opened at 19,175.30 and touched a high of 19,229.05 and a low of 19,069.30. Over the week, the indices have performed, as fears about Greece’s exit from Eurozone and a crash of Chinese market, abated.  
 
On Monday, Greek Prime Minister Alexis Tsipras accepted a compromise on German-led demands for the sequestration of Greek state assets to be sold off to pay down debt. With the Greece deal being struck, indices were up by around 1% in Monday’s trading. European Council President Donald Tusk said that EU leaders had unanimously reached an agreement on a third bailout for the cash-strapped southern European country of Greece. This was positive news for stock markets worldwide.
 
On Tuesday, it was a listless day of trading with a flat close after lower-than-expected retail inflation data dampened hopes of an interest rate cut by Reserve Bank of India (RBI) next month. Rise in food and fuel prices propelled India's retail inflation to 5.40% in June from 5.01% in May, official data showed. Foreign funds were net sellers of $87 million on Tuesday. Good buying was observed in IT and healthcare sectors, while selling pressure was seen in auto and banking sectors.
 
In Wednesday’s trading, Nifty and Sensex closed with healthy gains while Bank Nifty was subdued. Expectations of a rate cut in August by the Reserve Bank of India and cheaper oil imports from Iran cheered investor sentiments which led the Sensex to gain more than 265 points on Wednesday. 
 
The uptrend continued in Thursday’s trading, as positive global and domestic cues lifted investors' sentiments. Sensex gained more than 247 points on Thursday.
 
On Friday, S & P BSE Sensex and CNX Nifty closed in the green, while Bank Nifty closed marginally in the red. 
 
Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were:
 

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Congress ka haath, BJP ke saath!
In Gondia Zilla Parishad, Congress and BJP joined hands to keep out Sharad Pawar-led NCP, which emerged as biggest party
 
Bharatiya Janata Party (BJP) and its archrival Congress have joined hands in Maharashtra's Gondia Zilla Parishad to keep Sharad Pawar-led Nationalist Congress Party (NCP) away from the power. In the 53-member Gondia Parishad, NCP had won 20 seats, the Congress 16 and the BJP 17.
 
Cobbling up a quick post-poll alliance, the Congress and the BJP have bagged the two top posts of Zilla Parishad president and vice-president, leaving the NCP out in the cold.
 
Maharashtra Congress president Ashok Chavan has termed the development as "purely local" and has sought a report on the Gondia alliance from the party unit in Gondia.
 
On the other hand, Shiv Sena, which is an alliance partner in the state government with BJP has termed, the partnership in Gondia, as a 'miracle' that will affect state politics. The party, in an editorial in its mouthpiece, 'Saamana', said, "Taking a decision of this magnitude requires a lot of courage. Our ally has shown that it has the courage. We do not have any doubts that Maharashtra's problems like unemployment, farmers' woes will be solved with the blink of an eye." 
 
"It seemed that there was no reason to doubt the intentions of this clean, cultured and soft party (BJP) because it took its lessons from the Sangh (RSS)," the editorial said.
 
NCP in Gondia and Congress in Bhandara had unseated BJP in a comprehensive manner, in the Zilla Parishad elections held on 30th June. In Bhandara, in the 52-member house, Congress won 19 seats, NCP 15, BJP 13 and Shiv Sena won one seat.
 

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