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NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Basics of Estate Planning

Caselet: Mrs. Meera Shah, a Hindu widow aged 70, has ₹1.2 crore of self-acquired assets. She wants her son to get her flat and her daughter to get the investments, with her chartered accountant friend ensuring execution after her death, and she wants to avoid probate-related disputes. Which combination best fits her need?

She should make a will naming her friend as executor, and may register it to reduce disputes. Intestacy splits assets equally, a full gift loses control, and nomination alone does not give ownership of assets.

  1. AMake a will, naming her friend as executor, and consider registering itCorrect
  2. BMake no will, since Class I heirs will divide equally anyway as she wishes
  3. CGift everything now to the son, retaining no control
  4. DNominate the son on all assets and skip the will

Explanation

A will lets her allocate specific assets unequally and the executor carries out her wishes. Intestacy would not give the flat to the son specifically. A gift now loses control, and nominees are generally only trustees for legal heirs, so nomination does not replace a will.

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