Married Women Property Act-360 Degree Protection By.Pradeep Patil

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only to her child. In one of the case, the husband was alcoholic. Therefore, the concern of my reader was that her husband will not take care of the children. She was working and wanted to safeguard the interests of the children. In this case, insurance policy under section 6 of MWP Act is the only solution. I tried to cover all the important points. This option may not be useful in all the cases. It can be used selectively under special or extraordinary circumstances. Though the provisions of the act are good but always remember that policy under married women proportion act will not belong to the husband. Housewives 5 Steps to Financially Secure the Future According to a rough estimate, India has approx 60yrs of Housewives. The surveys suggest that there is a very little financial awareness among housewives of the society. Thanks to maledominated Indian society. In India, financial planning is linked to the breadwinner of the family. Logically, there is nothing wrong in it from a financial perspective. It‘s a misconception that Financial Planning is always linked to Investment. To financially secure a future and financial planning are different from each other. In past, there was a proposal floated to include the contribution of housewives to the country‘s GDP. According to rough estimates, on average Indian housewives spend 4.5 Hour per day on household work. As it is unpaid work, therefore, it is not accounted in GDP. A similar study was done in the USA. It was found that if this unpaid work is added to GDP then the country‘s GDP will increase by whooping 26%. In the same study, it was concluded that if unpaid work of housewives is quantified then it will be worth approx 11,000 USD per month. Though the study done in the USA might not be relevant in India but perspective is valid and holds true. The objective of the details shared in the first paragraph is to give you a rough idea that if unpaid work is quantified then it means some serious money. In other words, housewives are not earning directly. At the same time, through household work they are indirectly contributing to the finances of the household. In turn, they are indirectly contributing to the economy of the country :). The point I am trying to make is that housewives are indirectly contributing to the household expenses. It is important to financially secure the future of housewives. Here I am not suggesting investing in their name or buying insurance. The only way we can financially secure their future is by taking steps to ensure their rights in the case of any unfortunate event. Now you must be wondering, the nomination of all my investments is in my wife‘s name so what else is pending. This post is a result of situations faced by housewives in the case of unfortunate events. I thought of sharing it with my readers. I hope you will find the points mentioned in this post useful. Housewives – 5 Steps to Financially Secure the Future 1. Insurance: As a thumb rule of insurance, the coverage of breadwinner of the family financially makes more sense. - In my opinion, Health Insurance is a must for housewives. Depending on the family history, a critical illness cover can also be bought. From a personal finance perspective, the decision should be well thought through and should be need based 2. Insurance Policy affected under Married Women’s Property Act: I don‘t think so anyone is aware of it. A husband can buy a life insurance policy affected under Married Women’s Property Act to safeguard the financial interests of a wife. An insured person i.e. husband/male proposer has to fill addendum to Life Insurance Policy. For a sample, it is applicable only if the beneficiary of the policy is Wife/Son/Daughter. Basically Married Women‘s Property Act protects the property of women against the creditors. It is insulated from all the court orders, income tax department attachment, guarantees etc. In other words, after signing the MWP addendum, the insurance policy does not belong to the husband. In the case of death, all the proceeds are passed only to the beneficiary of the policy. It is very critical and crucial step. All the insurance policies of the husband should be affected under Married Women‘s Property Act. I will discuss it in detail in one of the future posts.
3. Transparency: According to news reports, Rs 64000 Cr of wealth is lying unclaimed with insurance companies, banks, post office etc. It is a rough estimate and does not include many small savings schemes. One of the key reasons can be that legal heirs and beneficiaries are not aware of these investments. All the financial planning is a waste and useless if the beneficiary or legal heir is not aware of it. Life is uncertain and we should accept this fact. It is important to maintain transparency with your spouse in case of financial matters. Though this step is never discussed as a part of financial planning. In my opinion, it is critical step to financially secure the housewives. 4. The Wife should not be a Co-Borrower of a Loan: Recently, I came across a case in which the wife is the guarantor of husband‘s business loan. To be honest, it is suicidal in nature. Not many people are aware that being a co-borrower but not the co-owner also means you are a guarantor. Banks always say that it just a formality and nothing will happen. They never inform that coborrower means a guarantor of the home loan. If the wife is working it is understandable. A housewife being a Loan Guarantor is unimaginable. Just give a thought how she will pay the debt in case of any unfortunate event. Any loan should be backed by the equivalent amount of insurance affected under Married Women‘s Property Act. Only if the wife is co-owner, she can be co-borrower. 5. Legal Heirs: It‘s a common notion that after husband‘s death all the wealth will be inherited by wife and children. It is not true always. If the husband dies without WILL then under Succession Act the wealth is inherited by class I legal heirs. Legal heirs of a male include wife, children and the mother. Now the mother is included with intent to protect the rights of women at old age. In multiple cases, I observed that it becomes a major dispute between mother in law and daughter in law. I am not favouring any party but in this ball game, the right of the none is protected. It is important to execute a WILL and keep all the beneficiaries informed. Through this post, I tried to cover some of the important points to financially secure the future of housewives..Hope you liked the post.
Page 1 and 2: 2017 MARRIED WOMEN PROPERTY ACT- 36
Page 3 and 4: CA is an expert in accounting and t
Page 5 and 6: An easy way around this dilemma is
Page 7 and 8: Taxation: This is another aspect th
Page 9: will, married women can share/part
Page 13 and 14: Children deferred assurance plans a
Page 15 and 16: Special trustee may be an individua
Page 17 and 18: The beneficiary if major and compet
Page 19 and 20: 15) DIVORCE OF WIFE AFTER ISSUE OF
Page 21 and 22: If addendum used is of 7, 8, 9 and
Page 23 and 24: Damodar K. Shah vs Cit on 10 Novemb
Page 25 and 26: Women's Property Act of 1882. Secti
Page 38: Just by knowing MWP is not enough o
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Frequently Ask Question
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Answer-Kindly note that assigning o
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QUICK RECAP OF MWAP
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Married Women Property Act-360 Degree Protection By.Pradeep Patil

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