SECURITY IN OLD AGE

In today’s dog-eat-dog world, our senior citizens are particularly vulnerable to the designs of those who covet their assets accumulated through the sacrifices made over their working lives. They could be at risk from their own kith and kin, servants, business associates, neighbours or professional criminals. In this article, an attempt has been made to outline the measures that the elderly may take to mitigate the risk. These measures would help them in safeguarding their life and property and ensure that after their demise, their assets are disposed of in accordance with their wishes.

- Editor

EXECUTION AND REGISTRATION OF WILL

Will is a legal declaration of the intention of the testator, i.e. the writer of the will, with respect to his/her own property, including business. This intention is to be given effect to after one’s death; it is revocable during the life time of the testator. It is the prerogative of the writer of the will to disinherit anyone, legal heirs included, from his estate.

A will should be written only when one is in a sound physical and mental condition. It should preferably be registered with the designated registration authority of the state. Institutions such as courts, insurance companies, banks and municipalities lend greater weight to a registered will. In the case of an unregistered will, many institutions insist that it should be probated in a proper court of law. This is a costly affair, costing about 2.5 percent of the total value of the estate apart from lawyer’s fees, and may take a few years.

A will should be written on plain paper and countersigned on each page by two persons as witnesses and attested by the Sub-Registrar concerned. In case the testator’s spouse also has her own property, she should also execute and register her will.

There is a general misconception that the property held by the husband will automatically be inherited by the wife on his death. This can happen only if the deceased has bequeathed his property to his wife.

In case a person dies without writing a will, his property will devolve to his legal heirs according to the personal law applicable to the deceased. For example, if a person who follows the Hindu religion dies intestate, one portion of his estate is given to the spouse and one each to the children. If there is a property that cannot be physically divided among all the legal heirs, they would have joint rights over it. Childless couples or single individuals should also write a will to avoid unsuspected legal heirs springing up after their death.

It is advisable to keep the contents of a will a secret from the legal heirs to avoid pressure on the testator to change his will according to the desires of the legal heirs. A will can be revised any number of times, but a registered will can be revised only by a subsequent registered will.

If a property is owned jointly by the husband and wife, both should write their separate wills for the part they own. In a place like Delhi, where the Delhi Development Authority has permitted joint ownership even if the other spouse has not contributed to the cost of the property, such property must be registered under joint ownership with the spouse alone.

If there is a registered will, the transfer of funds to the beneficiaries is greatly facilitated. Otherwise, banks take a lot of time to transfer the funds to the legal heirs. After the death of the head the family, the hapless widow is at her wits’ end. It will be helpful if the testator requests a friend enjoying his confidence to help the widow navigate through the most difficult phase of her life (I do not advise anyone to appoint an executor because on the demise of the testator, all the assets are transferred to him, to be distributed amongst the legal heirs).

For the guidance of the readers, a sample will is reproduced at the end of this article. It is just a model; it will have to be customized in accordance with the specific circumstances of each individual.

PRUDENCE IN FINANCIAL MATTERS

Till a few years ago, properties in Delhi and its satellite townships were held on lease from the development authority concerned. It is possible now to get such ‘lease hold’ property converted into ‘free hold’, by making a one time payment. It is advisable to get the property converted into ‘free hold’ and registered in one’s own name as legal owner.

In and around Delhi, a large number of properties are sold and purchased by people under a Power of Attorney (POA). Legally, POA properties are sold or bought in the name of the person giving the authority to the holder of the POA to act on his behalf. In legal parlance, the holder of the POA is not the owner of the property. The POA expires on the death of the authorizing person. From time to time, DDA and other agencies have allowed such properties to be converted to ‘free hold’ in the name of the last purchaser. It would be advisable to convert POA property into ‘free hold’ by fulfilling the required formalities.

Certain precautions have to be adopted by senior citizens if they wish to rent out their property. They should engage a good property agent to find a reputed company or established entity willings to hire the property, negotiate and draw up a formal lease agreement and register it, even if the rent is less. The agreement should have a clause stating that in case the property is not vacated on the expiry of the lease period, the rent shall be increased by a specified percentage – say 200 to 500 percent. While giving a property on rent, one should not hand over the key to any dealer. Recently, an 82 year old, retired IAS lady officer lost her property in Delhi to a dealer, who occupied a portion of her house illegally. The case has been pending in the District Court for the past few years and the dates of hearing are being manipulated by the dealer in connivance with the court staff.

Builders and property dealers in India are often known to be dishonest. One has to be careful while dealing with them. If one wishes to enter into an agreement with a property dealer or a builder to sell one’s property or to construct a multi-storied flat, it is necessary to draw up the deed in consultation with a legal firm of good repute.

In large cities, there are ‘property sharks’ who try to grab the properties held by elderly persons by dubious means. If a senior citizen wishes to sell his estate, the property sharks create various hurdles, so that the owner is forced to sell it to them at a throw away price. To avoid such a situation, a senior citizen who wishes to sell his property, should preferably consult only one reputed property dealer and refrain from broadcasting his intentions to all and sundry. Documents should not be signed blindly; one should take the time and read through the entire document. One may also take the help of organisations like Helpage India, Agewell, Dignity Foundation, or an advocate of repute.

In case one is holding a large property whose price has appreciated considerably, one should consider selling it and buying a smaller property, which is safe and more manageable.

It is very important to keep track of one’s finances. The following precautions will save a lot of bother. Check bank/credit card statements every now and then. Avoid internet banking. Do not give personal bank information to unsolicited e-mails. There have been many cases where people have lost their money through fraudulent withdrawals from bank accounts. Withdraw only a small amount at a time from the bank. Never count money in the presence of domestic helps. Do not trust anyone and do not disclose your riches.

Do not give away your property under duress or threat. In case of threat, file a complaint with the police and if the police refuses to register it, send it through registered or speed post to the Police Commissioner or other senior officers.

Often, one finds relatives approaching senior citizens to stand surety for loans to be taken from Banks and financial institutions. After paying a few installments, they stop the payment, and then recovery agents and goons employed by the lender descend on the surety to recover the loan.

Bank accounts, mutual funds, shares and lockers should be held in joint name, with a provision for operation by the survivor. Many senior citizens invest in Public Provident Fund. On the death of the holder, the balance goes to his nominee. Hence, it is important to nominate one’s spouse as the nominee.

Last but not the least, start an asset register which should have information about your bank accounts, lockers, PF and PPF accounts, investments in small savings instruments, shares, mutual funds, property deeds and other connected papers, as well as details of the passport, electoral card, PAN card and where these documents have been kept.

PHYSICAL & EMOTIONAL SECURITY

Senior citizens should remain active, take a daily walk without fail, shave every day and be smartly dressed. There is no reason to lament one’s retirement and advancing years. Most of us are in a position to maintain the same standard of living which we were used to before retirement. This is the age when we can wear what we wish to. A person who is smartly dressed and is active is unlikely to be attacked.

Take special care while crossing roads. Be careful while in the bathroom. Many senior citizens have a fall in the bathrooms and never recover from a broken hip. Such accidents are avoidable if a little care is taken.

All senior citizens have to take care of their health needs. It is sad but true that no one is going to come to their help when needed. It is advisable to subscribe to a medical insurance scheme sponsored by one’s employer. Central and State governments and the defence forces have such schemes for their pensioners. If such a scheme is not available, the retiree should opt for a Mediclaim policy of an insurance company for himself and his spouse.

You will do well to form a social group in your immediate neighbourhood to be contacted in a serious emergency, such as a sudden illness, injury or theft etc. Their telephone numbers should be known by heart.

Elders need to adopt a proactive attitude towards their personal security. It is not possible for the police to offer protection to every senior citizen all the time. In most of the cases, bodily harm to elderly people is caused by friends, relatives, domestic helps, tradesmen, couriers, making a friendly entry into the house. It would be advisable to keep house keys away from the prying eyes of domestic helps. Do not trust anyone blindly. Make sure that you have done a police verification of the domestic help. This can also be done by sending a registered letter/courier to the address given by the servant. In case the letter returns undelivered, the address given is wrong. Avoid employing foreigners full time. In case you are relieving a servant from his services, pay him in full immediately.

Before retiring for the day, check whether all the doors are duly secured and closed. In some cases, it has been found that the domestic servant had deliberately left a side door open for the entry of accomplices that has led to murder of an elderly couple or a robbery. Keep a light on. Always remember the adage: ‘Better late than never.’

According to a survey carried out by The Hindustan Times, forty nine percent of elderly people in Delhi who live with their children, whether having a separate kitchen or sharing it, are facing tension, or are subjected to various types of abuse over inheritance, division of property, or transfer of ownership of assets. The problem is aggravated if the parents refuse to carry out the wishes of their children. Not infrequently, elderly parents/grandparents are relentlessly pestered for money to support their descendants’ life style. According to the HT survey, the dependency factor emerges very strongly in property disputes, as most of the abused senior citizens are emotionally or materially dependent on their children. Those who can support themselves, are able to ignore importunate demands and seek help, if necessary.

If you are helpless and your children are harassing you, you should not hesitate to report the matter to the Police. You may also take the help of Agewell, Dignity Dialogue, Senior Citizens’ organizations and even the National/State Women’s Commission. Always remember the Police Control Room number.

If you are alone and not too old, it would be good to find a spouse for yourself from the matrimonial columns of newspapers or from various internet matrimonial sites. One may encounter opposition from the children, but remember, it is your life and you need to make the right decision according to the circumstances you find yourself in. Don’t worry about criticism from relatives and neighbours. In Gujarat and other states in western India, this trend is growing.

TIPS FOR THE SURVIVORS

On the demise of the property holder, the heirs should immediately procure twenty original death certificates from the Municipal Corporation/Committee. This would take about a fortnight. In case the bank account is held in joint names it is advisable to withdraw money upto the permissible amount before informing the bank. Meanwhile, one should gain all relevant information about banks accounts, FDs, investment mutual funds, shares etc. where the diseased was the first holder. Meet the bank/fund managers concerned and inform them of the death of the account holder. Also collect the prescribed forms required to be filled up for transferring the money to the widow nominees and complete all the formalities/procedures immediate action to fill up all so that claims could be submitted immediately on receipt of death certificates. If there is any property of the dead person on rent, immediately inform the tenant and request him to remit the rent to his successors.

N. AHUJA
Management Consultant & Advocate
C.2/2262, Vasant Kunj, New Delhi-110070
Mobile: 9312234825
Email : narendra.ahuja@gmail.com

- Kamal Kant Jaswal

Jan - March 2009