The making of a will or the creation of a power of attorney are both legal processes that require a number of important decisions to be made. One such decision is the financial requirements of either procedure. In this blog, we will take you through the required cost for a will and a power of attorney document.
First, let’s look at the steps and finances required for a will.
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What is a Will?
A will, in simple words, is a legal document that ensures the fair and reasonable distribution of one’s assets. It is also used to arrange for the care and supervision of minor children. The will is only executable after the death of the owner. In legal terms, the owner of the will is referred to as the testator.
According to section 2(h) of The Indian Succession Act, 1925, a will is defined as: “the legal declaration of the intention of a testator with respect to his property which he desires to be carried into effect after his death.”
Generally, the owner of the will would assign an executor who could be a financial advisor. The executor is approved by the court and upon the death of the testator, they are given the authority to legally act on behalf of the deceased.
What is the Average Cost for a Will in India?
Up until a few years ago, the process of making a will was a costly one. The legal fees involved alone was extremely high. However, today it is not necessary to seek legal guidance as most of the information is easily found online. Nonetheless, if you would prefer to hire a lawyer to assist you with the process of drafting your will the legal fees could fall anywhere between ₹5,000 to ₹15,000 depending on the expertise and experience of each lawyer.
The next step is to assign an executor who will be responsible for enforcing the will once the testator has deceased. It is perfectly normal to have one’s friends and relatives as the executor of their will. Though for some individuals it is much more satisfactory to assign someone who possesses legal and financial expertise. In this case, the professional fees charged may either be approximately ₹50,000 to ₹2,00,000 or a percentage of the value of the estate.
Aside from the above-mentioned finances, the cost of making a will is almost negligible. The only additional costs that may be incurred are registration of the will and stamp duty.
How to Make a Will in a Few Simple Steps?
Step 1: Determine the assets you possess and the liabilities you owe.
Step 2: Identify the individuals who will be given ownership of the estate and assets. In case there are minors present in the family, appoint a legal guardian to them.
Step 3: Appoint an executor that is trustworthy enough to carry out the execution of the will.
Step 4: Use eSahayak to draft your will. Just enter your details and the conditions of your will and your statement will be generated in seconds!
Step 5: Next, the will must be signed by the testator along with two witnesses
Step 6: Finally, the will must be registered at the office of the Sub-registrar of Assurances
What are the Documents Required for the Registration of the Will?
- The original signed Will
- Two passport-sized photographs each of the testator and the two witnesses
- A mental fitness certificate of the testator
- Photo proof of the testator and the two witnesses
- Address proof of the testator and the two witnesses
- Pan card of the testator and the two witnesses
What is Power of Attorney?
Power of attorney (POA), is another legal document that requires careful consideration and a great deal of decision-making. It authorizes an agent to act on behalf of another individual referred to as the principal. The decisions made by the agent could be in relation to the financial, legal or personal affairs of the principal.
A POA is most commonly implemented in the situation where the principal becomes incapacitated. In case the principal is physically or mentally incapable of acting on his or her own behalf, the agent may step in and the Power of Attorney will be enforced.
Types of Power of Attorney
There are many different types of POAs depending on what purpose they solve. The four most common ones are:
General Power of Attorney
A general POA is a broadly defined agreement between the principal and the agent where the agent is given a great deal of power to make decisions on behalf of the principal. These include decisions regarding buying or selling of property, opening financial accounts and other contractual agreements.
Special Power of Attorney
As opposed to the general POA, a special power POA is a powerful tool for the principal to limit the level of control given to the agent. This document is usually extremely detailed to ensure that the boundaries of the agreement are clearly defined and the duties of the agent are specific. It may also be used to arrange a POA for a limited amount of time.
Durable Power of Attorney
A non-durable POA is one that ceases to exist as soon as it has been revoked by the principal. However, a durable POA is used when the principal wishes for the agent to continue acting on their behalf even when they have been rendered incapacitated.
Medical Power of Attorney
Usually, when a principal falls ill, they still retain the right to make their own decisions regarding their health. However, a medical POA comes into play when the principal wishes the agent to make decisions on their behalf.
Irrespective of the type, a power of attorney is commonly used when a person is incapacitated or unable to make their own decisions. It is an important document that could come in handy in a situation where an agent is unable to make his or her own decisions.
How Much Does a Power of Attorney Cost?
| State | Stamp Duty |
| Andhra Pradesh a) General POA within the family b) General POA outside of the family c) Special POA | ₹1000 1% of property value ₹20 |
| Arunachal Pradesh a) when given for consideration b) for other cases | ₹50 ₹20 |
| Assam a) when given for consideration b) for other cases | ₹50 ₹20 |
| Bihar a) when given to a family member b) when given to someone outside of family | ₹1000 6% of property value |
| Chandigarh a) General POA b) Special POA | ₹75 ₹15 |
| Delhi | ₹100 |
| Goa a) when given to a family member b) for other cases | ₹500 ₹100 |
| Gujarat | ₹300 |
| Haryana a) General POA b) Special POA | ₹300 ₹100 |
| Himachal Pradesh a) General POA b) Special POA | ₹200 ₹100 |
| Karnataka | ₹100 |
| Kerala a) when given for consideration b) for other cases | ₹8 for every ₹100 ₹600 |
| Madhya Pradesh a) when given for consideration b) for other cases | 5% of property value ₹1000 |
| Maharashtra | ₹500 |
| Manipur | ₹100 |
| Meghalaya | ₹32 |
| Mizoram | ₹5 for each person authorized |
| Orissa | 5% of property value |
| Punjab a) General POA b) Special POA | ₹1000 ₹500 |
| Rajasthan a) when given for consideration b) for other cases | 6% of consideration ₹50 |
| Sikkim | 4% of property value |
| Tamil Nadu | ₹100 |
| Tripura | 5% of property value |
| Uttar Pradesh | ₹100 |
| Uttarakhand | 4% of property value |
| West Bengal | ₹5000 |
Easy Way Draft a Power of Attorney.
A power of attorney can be implemented by any individual who is competent enough to give power to the agent without any legal technicalities. It must be a carefully framed document using the appropriate legal terms and setting clear objectives.
All original documents used in and required for the POA must be authenticated by the notary.
Registration of power of attorney is not a requirement in India. A POA should either be authenticated by a Sub-Registrar, or it must be properly notarized by the notary especially when the agent has been granted power to sell land.
To draft your Power of Attorney, you can use eSahayak and have your document ready in minutes.