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Nilanjan Dey

Kolkata , Sept. 23

WILL, probate, power of attorney and other terms pertaining to inheritance are rapidly assuming more importance in India, thanks to the increasing number of rich individuals who are warming up to the idea of estate planning.

Estate planning, which broadly relates to the management of one's material legacy keeping in mind the tax consequences, is set to become a far more serious business than it is today. In future, it will not be the hunting grounds for lawyers alone; an army of financial planners is expected to provide serious, fee-based services to clients, including the working wealthy that seem to have permeated modern society in urban India.

Business Line's attempt to secure feedback from a variety of sources got a largely uniform response - people today are more inclined to plan their estates, the triggers being increasing complexities (read: fear of disputes among survivors) and tax implications.

While it is not absolutely necessary to register wills, the concept of registration is also gaining ground, legal sources indicate, adding that Indians are increasingly rooting for the formalisation procedure. As Mr A.R. Roy, a former registrar with Calcutta High Court, pointed out, many are now keen to arrange their succession well in advance. "For some of them, particularly those in the high net worth community, taxes play a key role... a formal will eases the tax burden in certain ways," he said.

Financial planners will be expected to take care of the tax angle, felt Mr Niamatullah, head of the Delhi-based College of Financial Planning. "Estate planning will go up in stature as individuals will appreciate that it is more than mere allocation of property. People will be receptive to ideas that experts, adequately conversant with the nuances of such planning, are likely to deliver," he maintained, adding that a course on tax & estate planning (which will cover aspects like leasehold & freehold, mutation and succession) will be introduced by the College early next year.

It is difficult to say for sure whether the number of registered wills has increased in recent times. However, the perception that this has actually happened draws strength from the changes that have taken place in Indian society in recent times, especially since the beginning of the liberalised economic regime. The average family is presently more fragmented, typically small in size, and there is more tension in terms of tricky family issues cropping up over property and other assets. Drafting of a will is often the best option for some one who wishes to prevent these issues from snowballing into legal battles after his or her demise.

"The wise these days do not die intestate (that is, without drafting their wills)," observed Mr S.K. Ganguly, a tax advisor who lectures at IIM-C, adding that he would rather urge clients to write wills instead and register the documents. "Instances of wills being challenged in the courts by vested interests are also quite common," he said.

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