An in-depth look at the financial and emotional costs of dying intestate in India — delayed asset access, family disputes, and billions locked in unclaimed wealth across every asset class.
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Editor
When someone in India dies intestate (without leaving a will), their family often faces significant legal hurdles and emotional turmoil. Banks, insurers, and other institutions freeze the deceased's accounts and assets until heirs can establish their claim through court documents such as succession certificates or legal heirship certificates.
Even uncontested, obtaining a succession certificate can take 3–6 months. In complex cases or disputes, it may drag on for years. According to estate planning experts, without a will the process of discovering assets, getting court certificates, and accessing those assets can take up to 3 years and cost lakhs of rupees in legal fees.
India's courts are crowded with such cases — over 4.4 million properties are embroiled in inheritance disputes, with an average property dispute lasting around 15 years in litigation. Studies show roughly 66% of civil cases in India are property-related litigations.
The widespread lack of wills and proper nominations in India has led to a massive accumulation of unclaimed assets across financial institutions. Below is a breakdown by asset class:
As of early 2026, unclaimed bank deposits totalled ₹72,454 crore. Public sector banks account for the bulk — around ₹60,571 crore — and private banks around ₹9,608 crore. This represents a sharp rise from ₹46,221 crore unclaimed as of December 2023, a fivefold increase since 2016.
By March 2024, insurance companies held over ₹21,700 crore in unclaimed policy proceeds. Life insurers alone had about ₹20,062 crore unclaimed at the end of FY2023-24. Each year, insurers transfer policies unclaimed for over 10 years to the Senior Citizens' Welfare Fund (SCWF).
The EPFO reported that 31.86 lakh (3.186 million) inoperative PF accounts hold about ₹10,903 crore in unclaimed deposits. These are accounts of workers who changed jobs, passed away, or forgot to withdraw — and whose families face hurdles claiming without a will or proper nomination.
By March 2024, companies had transferred ₹8,237 crore to the IEPF, up fourfold from ₹2,016 crore in 2017-18. Approximately 117 crore (1.17 billion) shares have been transferred to IEPF custody — estimated to be worth ₹40,000–50,000 crore in market value.
Unclaimed mutual fund redemption and dividend amounts reached ₹3,452 crore in FY2024-25, a 20% jump from the previous year. Lack of a nominee or will worsens the situation: if an investor dies and the family is unaware of the holdings, legal paperwork for transmission is cumbersome.
A recent estimate suggests around 4.4 million properties across India are stuck in inheritance disputes, tying up an estimated $200 billion (over ₹16 lakh crore) in real estate value — equivalent to 7–10% of India's GDP, essentially frozen in courts and conflicts.
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legalbuddy
Editor at LegalBuddy
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Beyond rupee figures, the emotional and social impact of dying without a will is profound. Families already coping with loss are thrust into stressful bureaucratic procedures and potential infighting. Delayed access to funds can cause immediate financial strain — a widow may struggle to withdraw money for daily expenses if accounts are frozen.
Family disputes over inheritance can damage lifelong relationships. It is not uncommon for siblings to stop speaking to each other due to arguments over property shares. Studies suggest only less than 10% of Indians have an official will, compared to nearly 50% in the USA.
Writing a will is neither difficult nor expensive. Under Indian law, a will simply needs to clearly state how you want your assets distributed, and be signed in the presence of two witnesses. It does not require registration or complex legal jargon.
A will provides clear legal direction on asset division, appointment of guardians for minor children, and care for dependents. It bypasses the default intestate succession laws and prevents scenarios where, for example, a widowed mother's assets might go to distant relatives instead of her own side of the family.
In the words of one financial planner: "Writing a will ensures that a person's life savings do not sit idle in a government account, and that families do not drift apart due to fights and confusions around inheritance."
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