WILL , Tips to be cheerful and fundamental rights of “Senior Citizen Person”

WILL , TIPS TO BE CHEERFUL AND FUNDAMENTAL RIGHTS OF “SENIOR CITIZEN PERSON”

1st October, 2014 Wednesday ONGC- Officers Club

CA Nitin Pathak F.C.A. ,CISA, CISM,CIA,CISSP(USA) DISA(ICAI) ,DIRM(ICAI) ,SAP(FICO) Certification course on International taxation( ICAI) Certification course on IFRS ( ICAI)

Thanks Mr. S.A. Dhomse for introduction and inviting me to share my views on WILL, Tips to be cheerful and fundamental rights

of “Senior Citizen Person”.

Thanks to Lion S.P. Naiwal and his team of Lions club of Chandkheda.

Shri Nand Ram and his team of Retired Officers Association.

Particulars Average Years

Average Longevity 66.8 years

Female Longevity 67.95 years

Male Longevity 65.77 years

GDP $1.88 trillion USD (2013)

Above> 65 yeas 5. 5 %

Above> 15 yeas and Below< 65

64.9 %

Below >15 29. 7 %

Population 1.25 billion (2013)

U.N. GENERAL ASSEMBLY The year 1999 was the International Year of the Older

Persons.

“ 1st October” as the International Day for the Elderly, later rechristened as the International Day of the Older Persons.

18 principles which are organized into 5 clusters, namely-independence, participation, care, self-fulfillment, and dignity of the older persons.

PROBLEMS OF THE AGED:

Economic problems, include such problems as loss of employment, income deficiency and economic insecurity.

Physical and physiological problems, include health and medical problems, nutritional deficiency, and the problem of adequate housing etc.

Psycho-social problems, includes related with their psychological and social maladjustment as well as the problem of elder abuse etc.

WILL Will is an instrument through which testator write about

his bequeath of property

Person making a Will is known as 'testator’

The process of distribution taking place is known as 'Testamentary' succession

If person dies without making WILL than devolution of property of such a person after his death is known as 'Intestate succession’.

In India, laws governing such intestate succession are the Indian Succession Act, 1925, (I.S. Act) Hindu Succession Act, 1956 and Mohammedan Law.

WILL Domicile of a deceased is relevant in case of movable

property

Location of a property is relevant in case of Will

Intestate succession as per personal laws: 1. Faith of a person 2. The distribution depends on male, female

Class I, Class II, Agnates and Cognates

WILL Testator : a person making a Will.

Legatee or beneficiary : a person to whom property is given under the Will.

Legacy : a benefit under the Will.

Executor : a person appointed by the testator to execute the Will as per the provisions of the Will.

Attestation : an act of witnessing the execution of the Will.

Administrator : a person appointed by a competent authority to administer the estate when no executor is appointed or an executor appointed refuses to act as an executor.

WILL Probate : a copy of a Will certified under the seal of a

Court of competent jurisdiction with a grant of administration to the estate.

Codicil : a document which modifies or alters the provisions of the original Will and forms part of it.

Letter of Administration : a letter of the court appointing an administrator to the estate.

Succession Certificate : as issued by a Civil Court of competent jurisdiction in respect of the property of a person who has died intestate, that is without making a Will and where letter of administration or probate is not compulsory.

WILL WILL needs to be in writing. No form is prescribed in law. WILL needs to be signed or marked as such. Witness by two persons. Legatee or beneficiary can be any person, born,

unborn or dead. In case if dead it will pass on to legal heirs.

Property past, present, future. Self acquired, gifted or bequeathed. Executor of the WILL. Not more than four is a

practice.

WILLa) Name, age, address, religion

b) Revocation of earlier Will

c) List of relatives d) Appointment of executor

e) Discharge of obligations

f) Legacies and bequests to persons

g) Residual estate h) Testimonium

i) Execution j) Witness

k) Safe custody l) List out in details

Revocation or Alteration in WILL can be made at anytime during life time.

Codicil: Codicil is an addendum to original WILL.

No stamp duty is payable on execution of a Will. A Will can be made on a plain paper.

Registration of a Will is optional. If desired it can be registered with the Sub-Registrar of Assurances office . Registration grants protection and secrecy to a Will.

Deposit : Will can be deposited at option of the testator with any person of his choice including Sub-Registrar of Assurances.

Probate : A probate is the grant of administration of the estate by the court of competent jurisdiction on the basis of Will.

A probate provides the conclusive evidence (i) of the execution of a Will (ii) of the legacies and (iii) of the legal character of legatees by confirming validity of a Will. It can be granted only to an executor.

Obtaining a probate is not compulsory in cases of a

Hindu and a Mohammedan

A maximum court fee of Rs 75,000 is payable in the state of Maharashtra for obtaining a probate. View taken that there is exemption in the said State where the Will is to be administered by an executrix (a lady executor) is a grey area. No time limit is prescribed for filing an application for probate.

Letter of Administration

A letter of administration can be obtained from the court of competent jurisdiction

Where the executor appointed under a Will refuses to act or where he has died before or after proving the Will but before administration of the estate.

CONCEPT OF REVERSE MORTGAGE

Age: More than > 60 years : Singly or with spouse More than >55

Property residential: Staying

Title should be clear

Period of loan: Not less than> 3 years and < Less than 15 years or death whichever is earlier

Eligible loan amount: 90 % of MV of property

CONCEPT OF REVERSE MORTGAGE

Purpose of loan : Personal expenses except business usage or speculative purpose

Rate of Interest : Public: 2.5% below SBMPLR present rate will be 10.75%

Loan can be taken as monthly withdrawal or Lump sum payment

CONSUMER PROTECTION ACT, 1986

What is covered in consumer protection ?

1. Goods 2. Services

17

18

WHAT IS A DEFECT ?

Fault Imperfection Shortcoming

In the Quality Quantity Potency Purity Or Standards

Which is required to be maintained by or under any law for the time being in force.

19

WHAT IS A SERVICE? “Service” means service of any

description includes:-1) Banking 2) Financing 3) Insurance4) Transport 5) Processing 6) Supply of electrical or other energy

20

WHAT IS A SERVICE?

7) Boarding or lodging or both 8) House construction9) Entertainment 10) Amusement11) The purveying or new or other

information

But does not include the rendering of an service free of charge or under a contract of personal service

21

CONSUMER DISPUTE REDRESSAL AGENCIES

1) A Consumer Dispute Redress Forum at the District level.

2) A Consumer Dispute Redress Commission at the State level.

3) A National Consumer Dispute Redress Commission at national level.

22

JURISDICTION Forum / Commission

Where the value of the goods or services and the compensation, if any claimed,

District Forum Does not exceed Rs. 20 lakhs

State Commission Rs. 20 lakhs and above but not exceeding One Crore

National Commission

Above One Crore

Besides, State and National Commission have appellate jurisdiction also.

23

FILING OF COMPLAINTSThe Fee for filing the Complaint for the district forum

is as under

Sr. No.

Value of Goods / Service and Compensation Amount of Fees

1) Upto Rs. 1 lakh rupees Rs. 100

2) Rs. 1 Lakh and above but less than Rs.5 lakhs Rs. 200

3) Rs. 5 Lakhs and above but less than Rs. 10 lakhs Rs. 400

4) Rs. 10 lakhs and above but less than Rs. 20 lakhs

The fees shall be paid by Cross demand Draft drawn on a nationalized bank or through crossed Indian postal order drawn in favour of the Registrar of the Sate Commission and payable at the place of the State Commission (w.e.f. 5.3.2004.)

24

APPEAL

Shall be filed within thirty days.

Delay in filing appeal may be condoned if there is sufficient cause.

25

LIMITATION PERIOD

o Within two years from the date on which the cause of action has

arisen.

CONSTITUTIONAL AND LEGAL PROVISIONS

INCLUDING MAINTENANCE AND

WELFARE OF PARENTS AND SENIOR CITIZENS

ACT, 2007

Law Requirement Maintenance Allowance

Constitution of India, Directive Principles, Article 41

The State shall, within the limits of its economic capacity and development, make effective provision for…old age, sickness and disablement, and in other cases of undeserved want.”

Not justiciable

Code of Criminal Procedure (Chapter IX, Section 125(1)(2))

Requires persons who have sufficient means to take care of his or her parents if they are unable to take care of themselves.

Rs 500/month maximum

Hindu Adoption and Maintenance Act, 1956

Requires Hindu sons and daughters to maintain their elderly parents when parents are unable to maintain themselves

To be determined by court

WHY A LAW FOR TAKING CARE OF OUR PARENTS AND ELDERS IS REQUIRED?

We, in India, used to start our day by bowing at the feet of our parents and elders in our traditional system.

Our elders were normally taken care of by one and

all in the joint family scenario.

WHY A LAW FOR TAKING CARE OF OUR PARENTS AND ELDERS IS REQUIRED?

With the withering away of the joint family system and emergence of the nuclear families we seldom find time or mind to devote for our parents and elders. The result is that a large number of parents are not only deprived of the care and love from their children, but also exposed to emotional neglect and lack of physical and financial support.

CONSTITUTIONAL PROVISION

In the Constitution of India, Article 15 (3) provides for making any special provision for women and children which will not be hit by the fundamental right of equality.

Article 39 contained in part IV containing Directive Principles of State Policy relates to securing citizens, men and women the right to an adequate means of living.


Article 41 contained in part IV obliges the State to make effective provision within the limits of its economic capacity and development for securing protection, interalia, in the old age.


The Parliament as well as the State Legislatures are competent to make laws for providing social security and social insurance, employment and unemployment (entry 23 of List III – Concurrent List in the VIIth Schedule to the Constitution)

LEGAL PROVISION

In order to prevent our parents and elders especially at the dusk of their lives and other family members including wife, child (legitimate or illegitimate) from resorting to vagrancy and wandering for their daily needs, section 125 CrPC was enacted, which ensures the social security and justice.

LEGAL PROVISION

CPC provides for grant of monthly allowance for the maintenance of wife, children, parents etc., in case they are unable to maintain themselves.

CPC also provides for interim order.

LEGAL PROVISION

Personal laws in the Hindu adoption and maintenance act 1956, Hindu Marriage Act, 1955 and Muslim personal law also provide for maintenance in case of need.

LEGAL PROVISION

The procedure under section 125 Cr PC is time consuming and cumbersome in addition to being expensive. Taking a clue and inspired by the “Himachal Pradesh Maintenance of Parents and Dependents Act, 2001, the Parliament enacted the 2007 act for making the claim for maintenance simpler speedier and less expensive.

THE MAINTENANCE AND WELFARE OF PARENTS AND SENIOR CITIZENS ACT,

2007

Parents Senior citizen Welfare Maintenance of Parents and Senior Citizens Obligation of the children or relative

THE MAINTENANCE AND WELFARE OF PARENTS AND SENIOR CITIZENS ACT, 2007

Jurisdiction and procedure Summary procedure in case of enquiry Enforcement of order of maintenance Option regarding maintenance Deposit of maintenance amount Award of interest where any claim is

allowed Constitution of Appellate Tribunal


Right to legal representation Establishment of Old age homes Transfer of property to be void in

certain circumstances Exposure and abandonment of senior

citizens Cognizance of offences Jurisdiction of Civil Courts barred


The provisions in the Act do not make any distinction between persons belonging to different religions or casts.

The right provided in the Act is personal and of Civil in nature.

The Act is full and comprehensive.

How to Invest?

Investment in FD

Investment in FMP

Investment is shares

Investment in Mutual fund

Investment in IPO

Debt fund

Investment in immovable property

CRITERIA OF SELECTING A MUTUAL FUND

A) Management of the fundB) Brand image of the fundC) Type of Scheme

(Debt/Equity/Mix)D) Expenditure RatioE) Quantum of fundF) Average returnG) Risk InvolvedH) Perception of individual

INVESTMENT TOOLScheme Rate of Interest Time period Risk

PPF 8.7 15 Low

NSC 8.5 5 Low

NSC 8.8 10 Low

Time saving post office

8.4 1 Low

Time saving post office

8.5 5 Low

MIS 8.4 5 Low

RD 8.4 5 Low

Mutual Fund Market Linked NA Medium

ULIP Market Linked 5 Medium

Shares Market Linked NA High

ANALYSIS OF SHARE MARKET:-Particulars 5 Years 10 Years 15 Years 20 Years

Return as per BSE Sensex at 31st March

10.94% 12.08% 12.36% 11.57%

Return in Bank (After tax ) 6.75% 6.75% 6.75% 6.75%

Cumulative investment of Rs 100 in Market

168.05 312.81 574.35 893.20

Cumulative investment of Rs 100 in Bank

138.62 192.17 266.39 369.28

Additional benefit 21% 63% 116% 142%

OLD AGE IS A BLISS ? When you are child ? You had an experience Speed More Higher Governance Right blend between old and young , will give

everything

WHAT I WANT TO COVER ?

“OLDER PERSON’S DAY” CELEBRATION BY UNO WILL & ITS BENEFIT AND INTRICASIES CERTAIN CONSTITUANT RIGHTS OF OLD AGE CONSUMER PROTECTION ACT REVERSE MORTGAGE CONCEPT A BOON FOR OLD AGE CONCEPT CALLED CREATOR V/s VICTIM PRAYER

PRAYEROh God give me a courage and strength to change the things, which I can,

He Ishawar Muje Shakti Aur Himmat do, ke jo chij main Badal Sakata Hoon, Use Badal doo,

Oh God Give me a serenity to accept the things that I can not change,

PRAYERHe Ishwar, Muje calmness or peacefulness de , ke jo chij main nahi badal sakta, use apki sogad ban ke svikar kar saku,

Give me a Wisdom to know what I can change and what I can not .

He Ishwar Muje sad buddhi de , ke kya chij main badal sakata hun, or kya nahi badal sakata

Thank YouREQUESTING FOR

ASHIRWAD & SHAHSTANG DANDWAT PRANAM

For any question or support

[email protected]

m

WILL , Tips to be cheerful and fundamental rights of “Senior Citizen Person”

Documents

Transcript of WILL , Tips to be cheerful and fundamental rights of “Senior Citizen Person”