Will my family have immediate access to funds after my passing or will assets be tied up in legal processes?
– -Name withheld on request
The main objective of estate planning is to ensure that an individual’s assets seamlessly transfer to their loved ones after their passing. However, if this is done through a Will, the process isn’t always immediate.
In many jurisdictions, a Will must first go through probate—a legal procedure where the court validates its authenticity. Until this is completed, the executor cannot distribute the assets, potentially delaying financial access for the family.
If an individual passes away without a Will, their assets do not automatically transfer to family members. Instead, legal formalities—such as applying for a letter of administration—must be completed before heirs can access the deceased’s assets.
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Even when a Will exists, complications may arise. If someone challenges the Will in court, claiming to be a rightful heir, the legal battle can stretch for an indefinite period. Until the court resolves the matter, the family may be unable to access the assets.
However, there are ways to avoid such delays. If an asset is jointly owned with a right of survivorship, the surviving owner can typically take full ownership without legal hurdles. Similarly, assets with designated beneficiaries—such as life insurance policies or retirement accounts—usually bypass probate and are transferred directly to the named beneficiaries, ensuring quicker access to funds.
Also read: Why women must drive estate planning
These challenges can often be avoided by setting up a private trust. Unlike a Will, assets placed in a trust are not subject to probate, ensuring a smoother transition of wealth to beneficiaries.
Additionally, trusts face a lower likelihood of being contested by legal heirs, reducing the chances of prolonged court disputes. However, for a trust to be truly effective, it must be structured efficiently, with a well-drafted trust deed that outlines asset distribution in various scenarios, such as disability or demise.
While the legal processes surrounding estate transfers may seem complex, careful planning—such as joint ownership with a right of survivorship—can help families avoid financial deadlock and gain timely access to funds.
Anuradha Shah – CEO and managing director, Warmond Fiduciary Services Limited
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