Will it really pass on smoothly? These inheritance hurdles trip up families

Even with a valid Will, missing paperwork, nominee confusion and executor disputes can delay inheritance claims for years

A valid Will does not guarantee a smooth transfer of assets because of legal gaps, poor documentation, or misplaced assumptions. From frozen bank accounts and stalled property transfers to family disputes over nominees and executors, inheritance claims get stuck for months or years.

 

Legal experts say many Indian families assume that succession planning is just about writing a Will. It is equally about ensuring the paperwork, executors, nominations and asset records are well aligned before death.

 

A Will alone may not unlock assets immediately

One of the biggest misconceptions is that once a person leaves behind a valid Will, banks, mutual funds, housing societies and registrars must automatically transfer assets to beneficiaries. In practice, that rarely happens.

 

“Institutions are entitled to satisfy themselves about the authenticity, due execution, and absence of competing claims before transferring assets,” said P C Roy, associate, ASL Partners.

 

Experts said financial institutions frequently ask for additional documents such as probate orders, indemnity bonds, affidavits, no-objection certificates (NOCs), KYC records, succession declarations, or letters of administration before processing claims.

 

According to Radhika Gaggar, partner (co-head - private client), Cyril Amarchand Mangaldas, documentation requirements differ depending on the asset class, whether there is a nominee, a joint holder, or rival claims from family members.

 

Even where probate is no longer mandatory in several situations, institutions often continue insisting on court-backed documents to shield themselves from future litigation.

 

“Financial institutions and housing societies take a cautious approach because they are not empowered to conclusively decide disputed succession rights,” said Alay Razvi, managing partner, Accord Juris

 

The executor problem can stall inheritance completely

Another issue families often overlook is the role of the executor, the person responsible for implementing the Will.

 

If the executor dies, refuses to act, becomes untraceable, or delays the process, inheritance distribution can come to a standstill.

 

“The Will itself remains valid, but beneficiaries usually have to approach the court for Letters of Administration with the Will annexed,” said Khushi Parmar, advocate, D M Harish & Co.

 

This process can significantly delay the transfer of assets because banks and registrars often insist on the executor’s participation before recognising claims.

 

Legal experts repeatedly stressed the importance of appointing alternate executors in a Will.

 

“The best practice is to always name an alternate executor in the Will itself,” said Prachi Dubey, advocate, Delhi High Court.

 

Experts also advised choosing an executor who is trusted, aware of the family’s asset structure, and likely to remain available when needed.

 

Missing paperwork creates the biggest delays

Inheritance disputes are not always driven by family fights. In many cases, simple documentation gaps create years of delay.

 

Experts cited common issues:

 

• Missing original Wills
• Mismatch in names across PAN, Aadhaar and property papers
• Outdated nominations
• Missing death certificates
• Improperly witnessed Wills
• Incomplete title deeds
• Outdated mutation records
• Missing investment details or folio numbers

 

“One of the most overlooked causes of delay arises after probate or succession certificates are obtained,” said Parmar. “The property records may still remain in the deceased owner’s name until mutation is completed.”

 

Without mutation, legal heirs may face problems in selling property, obtaining loans, paying taxes in their own names, or redeveloping assets.

 

Shashank Agarwal, founder, Legum Solis said fragmented ownership records and unsigned or contradictory Wills are among the most common reasons inheritance matters get dragged into litigation.

 

Experts also pointed out that families are often unaware of all the assets owned by the deceased, particularly digital assets, demat accounts, insurance policies and old bank accounts.

 

Nominee is not always the owner

Perhaps the most widespread misconception in India is that the nominee automatically becomes the owner of an asset after the account holder’s death.

 

Lawyers say this is legally incorrect in most cases.

 

“A nominee is merely a temporary custodian and not the ultimate beneficiary,” said Parmar.

 

Experts explained that nominees usually hold the asset in trust until it is transferred to the lawful beneficiaries under the Will or succession laws.

 

“The Supreme Court reaffirmed this position in 2023 in the Shakti Yezdani versus Jayanand Jayant Salgaonkar case,” said Gaggar.

 

This distinction becomes particularly important where nomination records conflict with the Will.

 

Unequal distribution often sparks family disputes

 

Disputes frequently emerge when heirs believe assets have been distributed unfairly.

 

Lawyers said transparency is critical in reducing such friction.

 

Executors are advised to:

 

• Maintain detailed records of estate assets
• Communicate openly with all beneficiaries
• Share copies of relevant documents
• Avoid informal promises
• Use neutral valuers for disputed property
• Consider mediation where tensions are high

 

“It is worthwhile for testators to leave behind an explanatory note or video recording explaining the rationale for unequal distribution,” said Supriya Majumdar, partner, Elarra Law Offices.

 

Experts added that even registered Wills can be challenged on grounds such as coercion, fraud, undue influence, or lack of mental capacity.

 

Estate planning is more than drafting a Will

Lawyers say Indian families often treat succession planning as a one-time exercise. In reality, Wills must evolve with changing circumstances such as marriages, divorces, births, deaths, property purchases, or new investments.

 

“A thoughtfully drafted Will does not merely transfer property — it preserves harmony,” said Parmar.