Retired and Ready: A Senior’s Guide to Estate Planning in India

You worked 35 years. You saved. You paid off the house. You invested in FDs, PPF, maybe some mutual funds. Your children are settled.

Now here’s the uncomfortable question: if something happens to you tomorrow, does your family actually know where all of it is?

Not “roughly.” Not “they’ll figure it out.” Do they know which bank, which branch, which locker, which policy number, which mutual fund folio? Because “figure it out” is how families lose months, lakhs, and sometimes relationships.

This guide is for anyone over 60 who wants to get their affairs in order. Not because something bad is about to happen. Because you’ve earned the peace of mind that comes from knowing your family won’t have to scramble.

Start With a Will. Yes, Even Now.

If you don’t have a will, make one. Today. Not next month.

A will doesn’t need a lawyer. It doesn’t need stamp paper. It doesn’t need registration. Under the Indian Succession Act, a will is valid on plain paper with two witnesses and your signature. That’s it.

What a will does: it tells the world exactly who gets what. Without one, Hindu Succession Act rules apply automatically, and your property gets divided by formula, not by your wishes. Your daughter-in-law who took care of you for 15 years? The law gives her nothing unless your son inherits first.

Three things to get right in your will:

1. List every significant holding: property, bank accounts, FDs, mutual funds, insurance, gold, locker contents
2. Name an executor, someone you trust to carry out your wishes
3. Sign it in front of two witnesses who are not beneficiaries

If you want extra protection, register the will. It costs a few hundred rupees at the sub-registrar’s office and makes it harder to challenge.

Update your will after any major life event: a grandchild’s birth, a child’s divorce, selling property, buying a new policy. A will written in 2015 that doesn’t mention the flat you bought in 2022 creates exactly the kind of confusion you’re trying to avoid.

Update Every Single Nominee

This is where most seniors slip up. You set nominees 20 years ago and forgot about them.

Your nominees might list your deceased spouse. Or a child’s maiden name. Or an old address. Banks and insurers use this information to process claims, and outdated details cause delays.

Here’s what changed recently:

• SEBI (March 2025): You can now add up to 10 nominees on demat accounts and mutual fund folios, with percentage allocation for each
• Banking Laws Amendment Act 2024: Banks now allow up to 4 nominees per account (Presidential assent received April 2025)
• Insurance: IRDAI still requires at least one nominee on every policy

Go through every account and update:

Account Type	Where to Update	What to Check
Bank accounts	Branch or net banking	Name, relationship, address
Fixed deposits	Same as bank account	Each FD may need separate nomination
Demat account	Broker’s portal	Now up to 10 nominees with % split
Mutual funds	AMC website or MF Central	Each folio separately
Insurance policies	Insurer’s portal or branch	Nominee alive? Details current?
PPF	Post office or bank branch	Update if spouse deceased
NPS	eNPS portal	Check nominee and allocation

One important thing: nominees are not the same as legal heirs. A nominee is a custodian who receives the money or asset on your behalf. The Supreme Court confirmed in Shakti Yezdani v. Salgaonkar (2023) that nominees hold assets as trustees, not owners. Your will determines who actually inherits.

Power of Attorney: Do It While You Can

A Power of Attorney (PoA) lets someone act on your behalf, sign documents, operate bank accounts, sell property, deal with government offices. You can only create one while you’re mentally competent.

That last part is critical. Under the Indian Contract Act (Section 12), a person of unsound mind cannot enter into a contract. If you have a stroke or develop dementia, your family cannot create a PoA after the fact. They’d need to apply to the court under the Guardians and Wards Act, which takes months.

Two types to consider:

• General PoA: Broad authority over all your affairs. Useful if you travel or live away from your property.
• Special PoA: Limited to specific tasks, like selling one property or operating one account.

A PoA for immovable property (land, flat) must be registered at the sub-registrar’s office to be valid.

Key rule: A PoA dies when you die. It is not a substitute for a will. The moment you pass away, the PoA becomes invalid and your nominee or legal heir takes over.

Protect Your Property From Being Taken

This is a real fear for many seniors, and the law now backs you up.

The Maintenance and Welfare of Parents and Senior Citizens Act, 2007 gives you the right to:

• Claim maintenance (food, shelter, medical care) from your children or legal heirs
• Apply to a Maintenance Tribunal in your district (decision within 90 days)
• Get up to ₹10,000/month in maintenance (varies by state, some have raised this)

The 2007 Act also has a powerful tool: Section 23. If you transferred property to your child (through a gift deed, for example) on the understanding that they’d take care of you, and they didn’t, you can get that transfer declared void.

The Supreme Court reinforced this twice in 2025:

• In Urmila Dixit v. Sunil Sharan Dixit (January 2025), the Court cancelled a gift deed because the son failed to maintain his elderly mother after receiving the property
• In Kamalakant Mishra v. Additional Collector (2025), the Court ruled that Tribunals can even order eviction of children who deny residence to their elderly parents

Practical advice: Never transfer property to children during your lifetime without a registered maintenance agreement. A gift deed is irrevocable in most cases, but Section 23 gives you a safety net if conditions aren’t met.

Spread Your Money, Reduce Your Risk

If all your savings are in one bank and that bank has trouble, DICGC (Deposit Insurance) only covers ₹5 lakh per depositor per bank. Seniors with ₹20-30 lakh in FDs should consider spreading across 3-4 banks.

Senior-friendly instruments:

• SCSS (Senior Citizens Savings Scheme): Currently 8.2% interest (Q4 FY 2025-26), max deposit ₹30 lakh per person. Available at post offices and authorized banks. 5-year tenure, extendable by 3 years.
• PM Vaya Vandana Yojana: If still available, check with LIC for current terms
• RBI Floating Rate Bonds: For those comfortable with variable rates
• Reverse Mortgage: If you own a house but need cash flow, NHB guidelines allow you to borrow against your home (up to ₹50,000/month) while continuing to live in it. Tenure: 10-20 years. Your family inherits the house after repaying the loan.

Get Your Tax House in Order

If you’re on the old tax regime, you have deductions that younger taxpayers don’t:

• Section 80TTB: ₹50,000 deduction on interest income from deposits (for those 60+)
• Section 80D: Up to ₹50,000 deduction on health insurance premium (vs ₹25,000 for non-seniors)
• Basic exemption: ₹3 lakh for those 60-80, ₹5 lakh for those 80+ (old regime)

Under the new tax regime (default since FY 2023-24), these deductions don’t apply. But you get lower slab rates and a higher rebate, so it may still work out better depending on your income.

One thing most seniors miss: Your final ITR. When you die, someone needs to file your last income tax return. Your legal representative (usually your spouse or child) is responsible under Section 159 of the Income Tax Act. Make sure they know your PAN, your CA’s number, and where your tax documents are.

The “What If I Can’t Speak for Myself” Plan

This isn’t just about death. It’s about the years before it. What if you have a stroke? What if dementia sets in? What if you’re in the ICU and can’t sign anything?

Three things to set up now:

1. Power of Attorney (covered above). Do it while you’re healthy. Once capacity is gone, it’s too late.
2. Joint bank account with “Either or Survivor” mode. Your spouse or child can operate the account even if you’re incapacitated. Different from nominee, the joint holder has immediate access.
3. Advance Medical Directive. The Supreme Court in Common Cause v. Union of India (2018) recognized the right to an advance medical directive, a document stating your treatment preferences if you can’t communicate. The Mental Healthcare Act, 2017 (Sections 5-7) also allows advance directives for mental health treatment.

The One-Page Summary Your Family Needs

Forget apps and spreadsheets for a moment. Can you write down, on one page, the answers to these questions?

• Which banks? Account numbers?
• Which insurance policies? Policy numbers? Agent’s name?
• Where are the property documents?
• Where is the locker? Who has the key? Who’s the nominee?
• Where is the will?
• Who is the lawyer or CA?
• Any pending matters, loans, or disputes?

This isn’t a legal document. It’s a map. And it’s the single most useful thing you can leave your family. More useful than the will itself, because the will tells them who gets what, but the map tells them where to find it.

Frequently Asked Questions

Do I need a lawyer to write a will?

No. A will on plain paper with two witnesses is legally valid. But if your estate is complex (multiple properties, business interests, trusts), a lawyer helps avoid ambiguity that could lead to disputes.

Can my children challenge my will?

They can try. But a properly executed will (signed, witnessed, ideally registered) is difficult to overturn. Courts require proof of fraud, coercion, or mental incapacity at the time of signing.

Should I give my property to my children now or after death?

After death, through a will. Giving property during your lifetime through a gift deed means you lose control. Even with Section 23 protections, getting a gift deed reversed takes time and a tribunal battle.

What happens if I don’t have a will?

Your property is distributed according to your personal law (Hindu Succession Act, Indian Succession Act, Muslim personal law, etc.). This may not match your wishes. Your daughter has equal rights in ancestral property since the 2005 amendment, which some parents may not have planned for.

Is a registered will more valid than an unregistered one?

Both are legally valid. But a registered will is harder to dispute because the sub-registrar verifies your identity and witnesses at the time of registration. Worth the small fee.

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Disclaimer: This article is for informational and educational purposes only. It does not constitute legal, financial, or tax advice. Laws referenced (Indian Succession Act, Hindu Succession Act, Maintenance and Welfare of Parents and Senior Citizens Act 2007, Income Tax Act) are subject to change. Tax benefits depend on your chosen regime. Consult a qualified professional for advice specific to your situation. Anshin is not a financial advisory service.