MWP ( Married Women's Property Act )

• In present scenario, taking loan is very common, MWP is powerful protection against all type of creditors.
• If case any illegal activities of a husband should not affect the family. MWP protects from court attachment.
• For the empowerment of women and safeguard the rights of women.
• In appointment of trustee always prefer wife.
• It's very important for HNI, businessman, politicians & celebrities
• In short, any property which is registered under MWP Act, no one can challenge to take that property from married women whether they are husband's - creditors, Family members or any relatives, even income tax department attachment, any court attachment or even husband himself.
• In, 1923, this Act was amended, and included insurance policies as women's property.

• To avoid such a situation, one can buy the policy under Section 6 of the Married Women's Property Act (MWP), Which gives special protection to one's wife and children, and prevents creditors from attaching a life insurance policy taken under this Act.
• Section 6 of the Married Property Act (MWPA), 1874, provides that a policy of insurance effected by any married man on his wife and children, or any of them, shall ensure and be deemed to be a trust for the benefit of his wife, or of is wife and children, or any of them according to the interests so expressed, and shall not, so long as any object of the trust remains, be subject to the control of the husband, or to his creditors, or form part of his estate.

• Any married man residing in india can avail benefit under this Act. 'married man' here also includes a widower and a divorcee who can name his children, if he wishes, as beneficiaries in a policy endorsed under this Act Under the MWPA only the wife and children can be named as beneficiaries. Consequently, no other family member or any other heir can lay a claim to the policy benefits. Thus, even if the husband and wife divorce after the policy is taken, the beneficiaries (wife and/or children) will continue to retain the same

• If policies registered under MWP Act, policies will become the property of Beneficiaries by which all future benefits will be given to the Beneficiaries only.
• Husband will pay all the premiums and take tax rebate too.
• After taking policy under MWP Act, that will be automatically protected from Husband, Creditors, his any legal attachments.
• In fact, the husband will also have no rights over the policy. This act helps in protecting family's financial interests in absence of life assured

• It is to be mentioned here that a husband can also name his wife and kids as beneficial nominees in a life insurance policy. Once beneficial nominees are named no one else can challenge their right to the death benefits of the policy. However, the beneficial nominees so named can be changed during the tenure of the policy. This means that in case of divorce or under the influence of other family members the husband can change the beneficiaries of the policy at a later stage.
• Buying life insurance under MWP Act can be a solution.
• The proceeds of a life insurance policy may still be recovered by one's creditors if some money is due to them or even by the legal heirs of the deceased. Their rights supersede that of beneficial nominees.

• Normally, we make NOMINEE under ordinary policy.
• Under MWP Act, Proposer make Beneficiary(ies), hence no nominee.
• Nominee can be changed by the Life Assured but Beneficiary(ies) cannot be changed so easily by the Life Assured.

• Life Assured opt the Beneficiary(ies) at the time of taking policy which can be...
• WIFE (alone) or
• CHILD/Children (Son and daughter) or
• Wife and child/children
• Life Assured if wishes select the percentage of sharing if beneficiary is more than one.
• Minor Children can be Beneficiary, but in this case Special Trustees is appointed as Appointee.
• Once Beneficiary is chosen cannot be changed or removed so easily.
• All the Benefits of LIC Policy will be given to the Beneficiary(ies) whether it is Maturity, Survival Benefits, Surrender or Death Claim etc.

• When policy is taken under MWP Act, there is no need to create a Separate Trust under Indian Trust Act.
• Life Assured can appoint one or two trustees individually or jointly.
• He can appoint ALTERNATIVE TRUSTEE. In case of death of appointed Principal Trustee, he will become the Principal Trustee.
• Trustee can be his wife or his major children or any other person. Any institution/ Corporate or Bank can also be Trustee.
• A written confirmation is required and attached with the Proposal Form.
• Trustee can be changed or replaced after taking policy by the Life Assured if he chooses this option at the time of taking policy.
• Husband (life assured) HUF/Minor cannot be Trustee.

• Trustee holds the money received in any form whether it is maturity, death claim, surrender or loan from the Insurance Company and give it to the Beneficiary(ies) for the benefit of Beneficiary(ies)

• Its very simple, easy and can be done without any extra cost.
• Fill one suitable MWP Addendum and duly signed by the life assured.
• It should be duly witnessed.
• The consent of the appointed trustee or trustees to act should be obtained on the Addendum.
• Attach it with Proposal Form.
• What is MWP Addendum...

• Its very simple, easy and can be done without any extra cost.
• Fill one suitable MWP Addendum and duly signed by the life assured.
• It should be duly witnessed.
• The consent of the appointed trustee or trustees to act should be obtained on the Addendum.
• Attach it with Proposal Form.
• What is MWP Addendum...

• Addendum is a kind of Form. There are different types of Addendum, choose as per the requirements.
• Fill one suitable MWP Addendum and duly signed by the life assured.
• Beneficiary(ies),
• Sharing Percentage of each Beneficiary (equal or specific)
• Trustee (s)/Alternative Trustee if chosen
• Beneficiary/Trustee :- Jointly or Survivor of them (elaborate)
• Addendum is very useful as there is no need to create separate contract or to create separate Trust under Indian Trust Act.

• This is decided by the life assured in the Addendum Form.
• He can opt joint tenancy or tenants-in-common: where appointment of more than one beneficiary is to be made.
• If he wishes that benefits to be given to the surviving beneficiary instead of the legal heirs of the deceased beneficiary or on death of one beneficiary, his rights passes to remaining survivor beneficiary(ies) then he shall opt JOINT TENANCE (survivor/survivor of them)
• Can policy under MWP Act be converted into ordinary policy or can Trust be revoked ?
• Until and unless all the beneficiaries are named, major, competent to contract and all of one mind-will give their consent.
• Assignment is allowed ?
• Not allowed.
• Can trustee be revoked or removed?
• This right is reserved with Life Assured... who clarifies in Addendum when polic is taken.
• Can Beneficiary be changed ?
• No provided all Beneficiaries are named, major and agreed for such change.
• Who is Alternative Beneficiary ?
• Life Assured can appoint Alternative Beneficiary, in case of death of principle Beneficiary, policy benefit will be given to Alternative Beneficiary. It is not for Muslims.
• If Beneficiary is Minor what will happen in case of Maturity/Death Claim:
• In this scenario, Trustee will hold the money. In case Trustee is not available then the benefits will be pass to the natural guardian of minor.
• When Beneficiary is mentioned as "CLASS" who will receive the Maturity/Death Claim ?
• The effort of creation of such a beneficiaries as a class is that on the occurrence of the event like maturity or death the benefit amount would go to the person answering the description of the class i.e. names of all members in beneficiary.

• Choosing the correct addendum to the proposal form, duly signed by the life assured and Trustee(s) and witnessed.
• Whether to appoint special trustees as adividuals or any institution.
• Whether trustees should be appointed two or more. If yes, then which rights should be given to them ?
• Whether any provision should be made for alternate trustees or not ?
• Whether any rights for raising the loan/revoking trustees or and appointing new trustee under the policy should be given at proposal stage or not?Whether any rights for raising the loan/revoking trustees or and appointing new trustee under the policy should be given at proposal stage or not ?
• -Who will be the beneficiaries? Whether beneficiaries should be mentioned as a class or by named beneficiaries ?
• Whether alternate beneficiaries should be appointed or not ?
• If beneficiaries are appointed more than one, then whether they will be appointed as joint tenants or tenants-in common.