MARRIED WOMEN’S PROPERTY (MWP) ACT, 1874

• Most businessman take loan (from banks or other source) to run their business
• They also have regular interactions with the tax authorities (Income Tax, Sales Tax, Customs and Excise etc).
• There is always a possibility that in case of problems regarding repayment of loans or payment of taxes, a businessman might have a dispute with banks/tax authorities.
• In such cases there is possibility that ALL his assets can be ‘attached’ by the authorities.
• Using the provision of MWPA (Married Women’s Property Act) the businessman can ensure that the money saved for the exclusive use of his wife and children do not get attached.
• This money is free from creditors, court attachments and also tax attachments. It is free from attachment as long as it was not procured with intent to defraud creditors etc
• For this a married man buys a life insurance policy for his life and pays the premiums. By using MWPA he ensures that the benefits of the policy re given to his wife and/or children ONLY.
• For this he needs to appoint a trustee and also sign a one page form.
• Policy can be marked “Under MWPA” at inception ONLY, this policy cannot be done once policy is issued.