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Will making is becoming an integral part of the distribution business.
Many financial advisors and MFDs offer will-making services to their clients to command a larger share of clients’ wallet share.
In this article, Mumbai RIA Vishal Dhwan of Plan Ahead Advisors and Bhilai MFD Ashish Mehta share with us their experience in will-making and insights on things to keep in mind before offering will-making services to clients.
Vishal Dhawan, Plan Ahead Wealth Advisors, Mumbai
The most important factor during will-making is to create an inventory and get the exact details of assets because there could be multiple bank accounts, safe deposits and properties of the client.
Secondly, MFDs should ensure that the distribution of assets is in line with the nominations to reduce any ambiguity.
Thirdly, the will should be created by appointing an executor in presence of the beneficiaries and witnesses to avoid future conflicts.
Another important aspect is language. The language of the will should be simple and clear and so that it could be implemented with clarity.
More importantly, if there are any minors who are beneficiaries then their guardians should be identified well in advance. If the will is going to a spouse, then that spouse’s will should also be created. This is done in case something happens to both of them.
Lastly, the decision on how the distribution of assets is done should be left to the investor and their family. The role of MFDs is to ensure that distribution of assets happens in line with the investor’s wish.
Ashish Mehta, Bhilai
To be efficient at will-making, MFDs have to understand the potential conflicts that can occur in the client’s family and take note of the personal preference of every individual involved in asset distribution.
In case it’s a well-knit family with no conflicts then communication with respect to transmission of the will is way easier. In case you identify some complications in the family then it is important to talk to every individual and understand the emotional background of each one of them to understand the conflict.
Secondly, make sure that the will clearly explains the rationale and history behind the distribution of assets. This comes in handy if the family of the individual contests the will in the court.
Thirdly, one has to clearly understand the various marriage acts like Hindu marriage act or Muslim laws as different religions have different ways in which distribution of assets is done. For example, under Muslim law, the client can only transfer one third of his will by their own choice, rest of the assets are distributed as per Sharia law.
