Name: Lalit Bhai Shah

Age: 75 years

Profession: Businessman

City: Ahmedabad

Summary: Choosing the right Executor for your estate is a crucial decision. Apart from making sure they are ready and willing to take on the responsibility, it's important to take into account the Executor's location. This case study highlights the potential challenges that can arise when these important factors are not carefully considered.

Was there a Will: Yes

Upon arrival in India, Sekhar encountered a number of challenges. He was not familiar with the local language, Gujarati, and the intricacies of Indian processes and procedures. He consulted a local lawyer for guidance, but discovered that the asset transfer service he intended to use would charge him exorbitant fees for the process, which is normally calculated as a percentage (typically, double digit) of the asset's value.

Story

Lalit Bhai Shah, a resident of Ahmedabad, India, created a Will to ensure the smooth transfer of his assets upon his passing. With no children and his brother's family residing in the USA, Lalit Bhai considered his nephew, Sekhar Shah, to be his closest relative and named him as the Executor in the Will. However, Lalit Bhai neglected to communicate this important responsibility to Sekhar, which led to a challenging situation for all involved. 

After Lalit Bhai's demise, Sekhar was taken by surprise to discover that he had been appointed as the Executor of his uncle’s Will. Since he was based in the USA, he found it difficult to oversee the estate matters, especially since some tasks required his physical presence in India.

Adding to the complexity of the situation, Lalit Bhai's wife, Kamla, was not proficient in handling financial matters and needed a lot of hand holding to complete the many administrative tasks in India. It soon became clear that Sekhar would not be able to take on this responsibility from abroad and given, he could not pass on this role to another trusted family/ friend in India without approaching the Court as the Will had only Sekhar as the sole Executor without nominating a back-up, he decided to take time off of work to fulfil his duty. 

Upon arrival in India, Sekhar encountered a number of challenges. He was not familiar with the local language, Gujarati, and the intricacies of Indian processes and procedures. Sekhar decided to consult a local lawyer for guidance in navigating the complexities of the Indian legal system. To his dismay, he discovered that the asset transfer service he intended to use would charge him exorbitant fees (which is usually calculated as a double digit percentage of the total asset's value) to complete all the required paperwork. Unable to navigate the system alone and pressed for time, he had no choice but to pay the fees so he could get back to his job and other responsibilities in the US.   

Challenges

• Uninformed Executor: Sekhar, being named as the Executor, without prior knowledge, faced the responsibility of managing the deceased's assets and official documents. This involved a series of legal and administrative tasks, which he was not prepared for.
• International Executor: As Sekhar resided in the USA, overseeing estate matters in India was challenging due to the distance and differences in language and processes.
• Financial incapacity: Sekhar’s aunt’s inability to handle financial matters and administrative tasks on her own necessitated his physical presence in India to help her, and ensure he was able to fulfil his duty as Executor of his uncle’s estate.
• Lack of contingency plan: Shekar was unable to pass on the Executor’s role to someone in India, as no back-up Executor was named/ nominated in the Will. If a new Executor was to be appointed, Shekar’s aunt would have to go to the court. While Sekhar was nice enough to take time off from work and travel to India, he could have very well denied to take up this role due to his far-off location which could have result into a bigger issue for Sekhar’s aunt. 
• Asset Transfer Fees: Sekhar's attempt to seek professional help for the asset transfer process led to the realisation that the service he intended to use would end up costing his family a lot of money.  Given the situation, however, Sekhar had no choice but to pay the extra fees so he could settle the estate quickly, and get back to his job and responsibilities in the US. 

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Learnings

Despite Lalit Bhai’s good intentions to create a Will and plan for his family’s future, his lack of proper communication ended up costing them precious time and money anyway. 

This case study provides valuable insights into estate planning and the role of an Executor. It emphasises the importance of open communication between individuals and their chosen Executors to ensure a clear understanding of responsibilities. Additionally, proximity of the Executor to the deceased's location plays an important role in facilitating an efficient and hassle-free administration of the estate.