DIGITALISATION – A DISTANT REALITY IN ESTATE PLANNING?
No one can truly predict the future, but we can always take cues from the present and add our experience to see a few steps ahead… often that understanding makes a big difference in the path we finally choose.
When clients walk into our offices, they are usually in bereavement. They are battling the emotional trauma of losing a loved one and we do help them with our advice and practical handholding, but we also see that they feel exhausted by the sheer magnitude of the work to be done from affidavits to be signed to documents to be notarized. We know that each legal process takes its own time, yet that is also a time of grief for our client.
Is there a way that we can help them? Or is there a new system that can be created that can help reduce the time and effort required by our clients?
Increasingly the world we live in is a digital world yet many of those digital solutions have not made inroads into estate planning. We think 2022 might breathe in that change.
Using the Disruptive Powers of Technology
Technology has been a key and positive disruptor in many industries from hospitality to banking and health care. Voice-enabled devices like Amazon Echo, IoT wearables like FitBit and Apple watch have given innumerable benefits like transparency, seamlessness, enhanced security and ease of application. In estate planning too, we think technology can wave its magic wand to reduce some serious obstacles.
1 : Digital Wills :
E-Wills as they are known require two elements— a digital signature on the Will and the electronic witnessing of Wills.
- Digital Signature on Wills: A digital signature is routinely used to validate the authenticity and integrity of a message. In India, digital signatures are valid for many contracts but they are disallowed for Wills, codicils, trusts and the sale of immovable property.
Wills that go beyond the regular document is not a new idea:
In October 2009, while deciding a 1985 case seeking the grant of a will, the Delhi High Court had ruled that video recording of a will is legally admissible evidence. It is possible to make a video recording of the entire process of execution of a Will but the process for that has yet to be defined by the regulatory authorities.
- Electronic Witnessing of Wills: Wills traditionally and legally are required to be signed by the testator in the presence of a witness. In 2019, USA passed the E-Wills Act which allows for an individual to make a will, sign it and have that signature witnessed, electronically. Thus, the witnesses will no longer have to be physically present when a testator affixes his/her signature on the Will. We hope in India too, we find a way to validate electronic witnessing
Currently, both these options are disallowed in India, but the Covid-19 pandemic built more urgency into the idea of a digital Will. Going forward we think this will be a key area where reforms can add a layer of accessibility and transparency for our clients
2 : Remote or Digital Notarization :
India does not require Will notarization but many other documents which are required for estate planning need notarization e.g., affidavits and power of attorneys. Digital or even video-enabled notarization can efficiently reduce the time spent by clients and notaries alike and we think this is a solution that can easily be implemented to the advantage of both.
3 : Online Probate :
Probate is one of the lengthy processes that make executors of Wills seek third party help. The length of the process is due to repetitive tasks like data entry and reconciliation, and they put a huge stress on bereaved individuals at a vulnerable time. We think that by finding online solutions for these repetitive tasks and maybe new technology processes, we can not only save clients’ time but also the time of estate planning practitioners so that they can focus on offering more value-added services.
Estate Planners Should Also Go an Extra Mile
Estate planning is an important part not only for Will creation but also for wealth management. It works as an additional tool for financial advisors and a thoughtful estate plan provides many benefits beyond wealth management to clients.
Expert-vetted estate plans help put asset protection ideas in place, prepare future generations to inherit wealth and prove to be valuable aids in sustaining peace of mind. However, we will be the first to agree that the process of providing estate planning advice is cumbersome and time-consuming.
One of the most tedious things for clients is to upload their asset details. From bank FDs to mutual funds, jewelry and precious keepsakes— everything that holds value for a client is essential for a detailed estate plan, yet many shy away from writing it all down because it takes a lot of time. It does and it is an important activity to be done because we cannot plan for that which we do not know.
For some time, our experts have been mulling the idea of QR codes to help solve this very basic problem faced by estate planning clients. QR codes are already being used for document verification in various industries like hospitality, marketing, advertising campaigns and even in payment gateways. Is there a way the varied asset documents be identified using QR codes?
Or imagine opening an estate planner’s website, uploading estate planning documents and receiving detailed analysis without leaving the confines of your home?
When you start thinking about it, many things can be done to ease processes, create more transparent systems, reduce the incomprehensibility in estate planning and make it more accessible to the client. Through the strategic use of artificial intelligence, enhanced visualization of estate plans and automated reporting, estate planners can make the world of wealth management easier to navigate for their clients.
That’s why we think technology can prove to be a major game-changer in estate planning because Covid-19 has created a demand for more online options and now it’s for the regulatory authorities to find a way to fulfill them. We already have the systems; we just need to tweak them for our requirements.