Adi Raj 12 August 2023

Is there a need to create a new will if the willed assets are sold off to purchase new assets?

My mother has Rs 50 lacs in fixed deposits and already has made out a will for all of it in my favour. However, we are looking to purchase a residential property in her name using a major portion of the above-mentioned corpus soon. The rest of the amount will be paid by me and the property will be registered in her name. I also have 2 siblings.
Will I become the rightful (and only) heir of the property under discussion in case of her demise, as the money used for its purchase was already willed in my favor, or will she have to make a new will explicitly stating the details of the new property?

Kindly help me out.
Thank you

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4 Replies

T. Kalaiselvan, Advocate (Advocate) 13 August 2023

She had bequeathed the amount in your favor by a Will, wheras she had utilised the amount herself during her lifetime hence the Will becomes reduntant

You cannot claim any right over the property which was purchased out of the money that was once upon a time bequeathed in a Will

If at all you want to claim any rights over the property, you can ask her to transfer the same to your name by executing a registered settlenment deed with a condition that she will have life interest in the property to enjoy the income also out of it

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Adi Raj 13 August 2023

Thank you sir for the guidance.

Dr. J C Vashista (Advocate ) 13 August 2023

The will executed by testator is meaningless and become redundant since the property (FD) bequeathed do not exist after it has been encashed.

She has to execute a fresh "will" to exclude FD and include new property stated to have been purchased utelising funds of FD.

Advocate Bhartesh goyal (advocate) 13 August 2023

Yes, the will executed by your mother in favour of you by which F.D has been bequeathed to you shall become useless as soon as F.D is encased so it will be better that your mother may execute fresh will after being encasement of F.D