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An estate plan is the process of planning for the orderly administration and disposition of property after the owner dies.
Estate planning involves making plans for the transfer of your estate after death. Your estate is all the property that you own. It can include cash, clothes, jewelry, cars, houses, land, retirement, savings accounts and so on.
Estate planning India includes making a will, setting up a trust or making a nomination and even life insurance. Estate planning services in India have gone to a new level Video taping of wills, making of trusts and even a probate (Will certified in a court) is the new way.
Online estate planning such as making of an online will as well as transfer of digital assets and even email accounts is an important business
You are able to pass on your wealth and assets to your loved ones and heirs, in a hassle free manner. This helps to avoid family disputes and fights.
If you have a handicapped child, you can provide money for future needs. A guardian would require money, as this child has special needs.
You have the family settlement where property and assets are divided in an amiable manner. A probate might prevent those lengthy court battles.
In the digital age the benefits of e-insurance and demat accounts are passed to your heirs. Video taping of a will ushers a new era in estate planning.
In the absence of a will, the distribution of the estate is governed as per laws of the nation. If you are a Hindu it is as per Hindu Succession Act 1956. For Christians, Jews and Parsis it is as per the Indian Succession act 1925. If you are a Muslim your property will be divided according to Muslim Personal Law.
This means that your loved ones might be left out of the disposition of the property, and in the worst situation when there is nobody to claim it, the Government becomes the owner of the property. Therefore estate planning is very much required as this is ultimately planning for your own assets with the future perspective in mind.
Will: In a will you state how you would like to distribute your assets (land, property, gold, cars) after death. Who should get how much? This is basically what a will is all about.
You need an executor (someone you trust) to execute the will on your behalf (Make sure that your wish is honored as you are not around to do the job yourself).
Trust: A trust is used to transfer wealth to your heirs (children).These trusts have to be compulsorily created/registered and Governed under the Indian Trusts Act 1882.
In a trust you (Settlor) can transfer your movable property such as a car as well as immovable property such as property or land to the trustee (person who holds the property on behalf of your beneficiary/children).
The trustee is the executor (manager of the assets) on behalf of your beneficiary and ensures that your wealth reaches the beneficiary irrespective of what happens to you.
You can transfer shares/mutual funds, fixed deposits, cars, land, apartments/house, gold, art as well as antiques to the trust.
Nomination: If you have a fixed deposit, shares or mutual funds you need to make a nomination, where you state who will get the money lying in these accounts on your death. The person you appoint is the nominee. The nominee (basically someone you trust) transfers your wealth/investments to your heirs (Children).The nominee is not the owner/inheritor of your wealth. He is a protector/trustee of your wealth and makes sure your beneficiaries (heirs) receive the money. Nomination is done mainly for shares/mutual funds, life insurance policies or land and property.
When you die after making a will your beneficiaries/heirs inherit your property/wealth. The nominee you appoint (could be your nephew or a lawyer), serves as a trustee and makes sure your wealth reaches your heir. A nominee is not permanent and you can change your nominees any number of times. You can appoint your heirs (children) as nominees. If your child is a minor and you appoint him as a nominee you need to appoint an assignee who serves as a guardian.
Whole Life insurance: If you want to leave a huge legacy for a disabled child you must take up a whole life insurance policy where on the policyholder's death, the disabled child (beneficiary) gets the sum assured as well as the accrued bonus.
If you have a genetic disorder which has a high chance of being passed on to your child then you can opt for a whole life policy where death benefits and an accrued bonus mean a large sum at maturity.
An estate plan is the process of planning for the orderly administration and disposition of property after the owner dies.
An estate plan can be as simple as having a will and naming a beneficiary, or as complicated as having several trusts for different purposes in addition to the will. Estate planning involves making plans for the transfer of your estate after death. Your estate is all the property that you own. It can include cash, clothes, jewelry, cars, houses, land, retirement, investment and savings accounts, etc.
After one's demise if he has no estate plan that includes a will, he/she is considered to have died in estate, and the state where he/she live will determine who gets your asset as determined under the state's inheritance laws. This means that one's loved one's might be left out at disposition of the property, and in the worst situation when there is no body to claim it then government becomes the owner of the same. Therefore estate planning is very much required as this is ultimately planning for one's own assets with the future perspective.
Making sure most of the estate is transferred to your beneficiaries
Paying the least amount of taxes on your estate
Assigning guardians for minor children, if any
Helping to reduce or avoid conflict among family members.
Ensuring that his/her children have the legal guardian of their choice.
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Estate refers to everything you own. This includes all your possessions, your investments, businesses and of course any property you own.
An adequate Will or Trust; .A written agreement concerning the status of your .A directive to your physician or a Durable Power of Attorney; .Final instructions of your preference.
Estate plan should not be considered permanent because your desire may change. Estate plans should be reviewed at least every two-three years but, additionally, any important change in your life demands immediate review.
Birth, death, marriage, divorce
Large increase or decrease in the net worth of you or a beneficiary;
Purchase or sale of a business;
Change of residence to another state;
Change in tax law.
If you do not have a Will or a Trust, and have not used other probate-avoiding techniques, upon your death, your assets will pass according to the laws of the state to those whom you might not desire to share your wealth.
A Power of Attorney allows you to delegate your right to manage, invest, and spend assets held in your individual name to someone else, called your "attorney in fact." Want to know more as to what needs to be considered to make a perfect estate plan, call us on 080 67974000 and speak to our experts!
Estate taxes are due and payable nine months after your date of death, and the IRS or state revenue department won't accept a piece of real estate, diamond ring, or stock in your business for payment. You're Personal Representative or Administrative Trustee will thus face the challenge of determining where the cash will come from to pay the taxes.
There is a legal obligation in some countries known as 'forced heir ship'. This means certain people (close family and dependants in certain countries) will have a legal claim to your estate, irrelevant whether they are included in your will or not. For some it might be the correct choice to remove this option by setting up an offshore trust in order to allow named beneficiaries on all or part of your estate. To know more about Estate Planning, call us on 080 67974000
If you die without a good estate plan, you're leaving everything to chance. Simply put, you won't have any idea what will happen to your loved ones in the event of your death or disability.
Generally, any individual can create a power of attorney if over 18 years of age, a resident of the state in which it is created, and legally competent. This, however, varies from state to state.
The term "probate" means the process of legally establishing the validity of a Will.
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