Navigating Inheritance: Challenges and Solutions for Smooth Asset Transfer to Heirs

Inheritance Disputes on the Rise: Legal Complexities and Family Fissures

When Satyam Bakshi passed away in 2020, he believed that his carefully detailed will would prevent any disputes over his self-acquired property. However, three years later, his two sons are at odds over the division of the property. Sandeep, the older son, wants to sell the house and split the proceeds, but his brother is adamant about continuing to live in it.

This scenario is not uncommon in India, where a large percentage of property disputes stem from inheritance issues. According to a study by a civil society organization, nearly one-third of disputes in the country relate to land or property, with 80% involving ownership or inheritance. The complexity of inheritance laws and the emotional attachment to family assets often lead to prolonged legal battles and strained relationships within families.

To navigate the challenges of asset transmission, experts recommend considering various instruments such as wills, trusts, gift deeds, and liquidation of assets. Each method has its own advantages and drawbacks, and the best choice depends on individual circumstances and the needs of the inheritors.

One key issue faced by inheritors is the lack of awareness about their parents’ assets, including movable assets like shares, mutual funds, and insurance policies. This ignorance can lead to delays in accessing and managing the inherited assets, as well as potential tax liabilities on income generated from the assets.

Financial planners suggest transferring assets while alive to minimize disputes and operational hassles for children later on. This proactive approach can help ensure a smooth transition of assets and reduce the burden on inheritors. However, some individuals prefer to retain control over their assets during their lifetime and opt for asset transfer after death through wills or succession laws.

In conclusion, the process of inheritance involves legal complexities, emotional considerations, and financial implications. By planning ahead and seeking professional advice, individuals can ensure a seamless transfer of assets to their heirs and minimize the risk of disputes and family rifts. Ultimately, the goal is to leave behind a legacy that benefits future generations while preserving family harmony.