Whom do we love the most? Most will answer our children ----Very True
Doing Estate Planning so that our legacy in terms of real estate, Investments, Business etc.is transferred to them in a convenient way becomes very important
Postponing a WILL can yield clashes and administrative hurdles. It is advisable to do early estate planning, especially for substantial assets and family businesses
Many people assume succession will take care of itself and treat estate planning as a passive exercise. But you might have come across some form of inheritance-related family disputes, suggesting the consequences are anything but passive.
Drafting a WILL is not a complicated exercise.
Let us understand how to get started
1) Make a list of everything you own:Write bank accounts with account numbers, balances and nominee details. Also write details about mutual funds, insurance policies, small savings schemes, pension funds, EPF, fixed deposits and other financial or immovable assets. Also list outstanding loans from banks and finance companies. Everything should be documented
2) Appoint nominees: Nomination is very important in all your investments if you have not done earlier, please do it now. Nominees are like Trustees who receive money on behalf of other beneficiaries
3) Draft a WILL: It should clearly state who receives each asset, in what proportion, and who will carry out those instructions (Executor). Clear wording is essential to avoid technical difficulties later. WILL shall be signed by the Testator in front of 2 witnesses who also have to sign on the WILL.
4) Keep it safe and inform the family: Family shall know that WILL is kept at safe place and executor also knows the safe place. Registration is not mandatory but it is advisable
5) Residuary Clause is important: A residuary clause is a special part of a WILL that handles any leftover property or money not named in other parts of the document. It acts as a safety net to give away forgotten items, new property or investments acquired later