Why Indian families still avoid writing wills despite rising wealth, organised investment

India’s household wealth has expanded significantly, driven by disciplined savings across bank deposits, insurance, equities, and mutual funds. Yet, a large portion of this wealth risks going unclaimed — not because of poor investment decisions, but due to weak estate planning and a persistent hesitation to write wills.

The scale of the problem is striking. Nearly ₹78,000 crore lies unclaimed in bank deposits, ₹14,000 crore in insurance, ₹9,000 crore in dividends, and about ₹3,000 crore in mutual funds. More concerning is the intergenerational loss of wealth, with studies indicating that nearly 70% of family wealth is lost by the second generation and up to 90% by the third.

Cultural discomfort

A key reason behind this trend is the deep-rooted discomfort in discussing money and mortality. Saurabh Bansal, Certified Trust and Estate Planner (CTEP) and SEBI RIA, explains, “Most families are not entirely comfortable talking about wealth in the first place. Financial details are often known to just one or two members, while others have only a partial view. Conversations around assets, ownership, or future distribution don’t happen easily.”

He adds that the challenge intensifies when wills are introduced: “A will moves the conversation from ‘what we have’ to ‘who gets what,’ and that shift brings in questions of fairness, expectations, and intent. These are deeply personal questions, and not always easy to answer.”

Cultural legacy of joint family systems

The hesitation also has historical roots. Pranjali Madnani, Director, Estate Planning at Agnam Trustees and Family Office (Agnam Advisors LLP), notes, “In earlier times, a single head of the family would decide the fate of family assets… But today, family heads are cautious about any kind of stir in the family that the topic of asset distribution may create.”

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She further explains that estate planning is often deprioritised: “It is also seen that family heads postpone the issue of estate planning and will creation because it doesn’t make it to the priority list. This often stems from the belief that we have a lot of time.”

Madnani also points to the historical context: “If you look at the history of India, Hindus never had the concept of will… Wills came much later with British rule. Culturally, India still has the mindset of collective family welfare.”

Emotional complexity over legal clarity

While drafting a will is legally straightforward, the emotional weight behind it is significant. Bansal highlights this nuance: “While a will is, on paper, a legal document, the decisions behind it are rarely just legal. They involve balancing equality with fairness… These are emotional decisions.”

This often leads to avoidance. Families choose short-term comfort over long-term clarity, postponing decisions that could prevent disputes later.

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Why it matters for investors and families

In today’s financial environment, where assets are diversified and often spread across instruments and geographies, the absence of a will can create serious complications. Missing documentation, unclear ownership, and reliance on nominations alone can delay or derail asset transfer.

Experts emphasise that estate planning is not just for the wealthy — it is essential for anyone with financial assets. A structured will, along with updated nominations and clear documentation, ensures that wealth is transferred smoothly and as intended.

Ultimately, the issue is not about lack of awareness alone—it is about overcoming cultural hesitation. As India’s wealth grows, the need to formalise its transfer is becoming just as critical as creating it.

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