DISASTER MANAGEMENT PLAN FOR PRUDENT WIVES

* Narendra Ahuja

Every now and then, you see on the TV heart-rending images of the widows of victims of terrorist attacks in New York , Mumbai, Delhi, London and elsewhere They tell stories of untold hardships, of coping with shattered lives and confused, upset children and of impending financial distress at a time when their grief makes it difficult to complete the most ordinary tasks, let alone sort out the estates of their husbands. Fortunately, there was no dearth of volunteers to help such women in the USA and the UK. There were government agencies to help expedite the death certificates and insurance claims. The bereaved families got free legal aid and other benefits, making it easier for them to come to terms with their loss.

Let us see what happens in a similar situation in India. No help whatsoever was forthcoming in the wake of the terrorist attacks in Delhi and Mumbai, or of the natural disasters in Mumbai, Orissa or Gujarat. No official or legal advice; no financial assistance. Yes, numerous VIP visits, empty promises and expressions of empathy; but no concrete help.

The experience of most Indian women who are confronted with sudden widowhood is more or less similar. The absence of a support system makes the task of the Indian widow an onerous one. This note has been prepared in the hope that every married man will take certain actions, which would considerably mitigate the hardship that his wife would have to undergo in the event of his sudden death. Likewise, every married woman will be encouraged to take proactive measures to secure her future in the contingency of widowhood.

Preparing for a tragedy is perhaps one of the most important steps in financial planning a wife can take. Thinking ahead to protect yourself and your children in the event of a disaster may be emotionally difficult, but it needs not take a great deal of time, or be very costly as in the USA; and you could someday thank your stars for having made the effort

Step 1 : Will power

You and your spouse should make out separate wills and get them registered. In India, getting a will registered only costs Rs. 21/. In the USA, it may cost $ 1,500-2,000. It’s a myth that people in their late 20s and early 30s are too young to worry about a will Indeed, this age group suffered most in the 9/11 attack and most of the young victims died intestate, that is, without executing a will. The absence of a will makes the process of recovery for the bereaved family lengthier and more complicated, and may entangle it in court cases.

It’s also a myth that you need to have a substantial amount of money and assets, including immovable property, to make a will. If you fail to make your will, your property will be distributed among your legal heirs in accordance with the personal law applicable to you. In the case of an intestate Hindu male in India, the legal heirs include his mother, widow and children.

Legally speaking, there is no difference between a registered and an unregistered will. However, if one goes by experience, there are lesser chances of people going to courts to contest a registered will. It is essential that a copy of your will should be available with your lawyer/ friend/ relative, so that it is easy for your spouse to locate it in the event of your death.

Step II : Collecting Important Records

Step two in your disaster management plan costs nothing but time. You and your husband should gather all your important records, a copy of the will and information about where the original will is kept, bank account numbers, safe deposit lockers, insurance policies, Provident Fund and Public Provident fund details, nominees and the like and keep them in a safe place, but definitely not at your work place. All documents kept at the World Trade Centre in New York were lost in the 9/11 attack.

The following is an illustrative list of important records for a resident of Delhi.

Immovable property : original sale deed of the house or flat; if on Power of Attorney, the original POA; original documents given by DDA/ Housing Agency to the original allottee, allotment letter, payment receipts, particularly of the last payment, possession letter, letter of physical handing over of house/ flat, registered will of the original allottee, sale deed, special and general power of attorney, etc. [A word of caution – never give your original documents of title or their photocopies to anyone.] In respect of property on rent, the original lease deed and related documents.

Movable property and official matters : bank account numbers, cheque books, locker particulars, FDRs of banks, companies and other financial instruments, nominations under GPF, PF, PPF, Post Office accounts, insurance policies, including life, household and medical insurance, registration certificate and insurance policy of the car, passport, income tax files, pension file, legal case files, if any, payment receipts of house tax, water tax and electricity charges.

Step III : Keeping Records updated

You should update your records and files every month so that you are not confronted with unpleasant surprises. If you have opened a bank account, or subscribed to a provident fund, or a life insurance policy before marriage, do remember to change your nominee. Ensure that in all your investments, the beneficiary/ nominee is your spouse.

Step IV : Identify A Friend In Need

Write down the name of person(s), who will be helpful to your spouse in her/ his hour of need.

Step V : Execute Power Of Attorney In Favour Of Your Spouse

You and your spouse need to give each other a power of attorney over each other’s assets in the event that one of you is permanently incapacitated, but does not die.

All this may sound gruesome, but sudden death or incapacity of your spouse is something you might have to face one day. The motivation behind disaster management planning is the desire to help the surviving partner cope with the loss and go on with the business of living.

* Mr. Narendra Ahuja is a Management Consultant and Advocate.