Estate planning is passing of assets or investments down from one generation to another. It is a dynamic process that needs to be reviewed at regular intervals to absorb any changes that might happen in our lives or in the laws of the country.

In another words, estate planning is the process of anticipating and arranging for the management and disposal of that person’s estate during the person’s life and after death with minimum tax liability. The ultimate goal of estate planning can be determined by the specific goals of the individual, and may be as simple or complex as per one’s needs. It also helps to appoint guardians for minor children and beneficiaries in incapacity.

There are multiple myths about estate planning. Let’s throw some light on them:

  1. It is only for wealthy people: It is important for everyone, irrespective of the size of wealth one owns.
  2. It should be thought only after retirement: Considering the uncertainties of life, it is important to plan it well in advance.
  3. My legal heirs will be able to handle it with maturity: Why should one put their legal heirs in difficult situation? To avoid any friction among family members post demise of the person, advance planning will help.
  4. All my assets have proper nominations; hence it will be passed on to them only: Remember, your nominees are trustees of assets and not owners. Owners of the assets will be legal heirs as per the will or family members as per the succession laws of the country.
  5. There is no need of legal opinion: Yes it is not necessary, but it is always advisable to have legal opinion.

Following are the benefits of estate planning:

  • Ensures Assets & Investment Inherited by the People of Choice: At times one wants to pass on specific asset to some specific person of the family or someone who is not a family member. Estate planning process can help the individual to plan and execute this smoothly.
  • Helps Pass Accolades to Specific Individual: Not all properties or assets have just economical value. There are many with strong emotional values too. When one wants to pass on such assets to the one whom he/she consider will value it the most, estate planning can help him/her for the same.
  • Prevents Financial, emotional & legal grief to loved ones: Loss of the family member is very disturbing moment. If appropriate planning is not done in advance it can increase the suffering financially, emotionally as well as legally.
  • Avoids complications, disagreement, bitterness and drift in the family: Clarity helps in strengthening family relationship. If all assets are distributed among members or planned to be distributed, family members have strong understanding and bonding. In another words, family bonding does not get disturbed due to property issues.
  • Effective Tax Planning: Every country has different tax system. Tax planning is also an important part of passing on legacy to the next generation. If planned in advance, it can help to reduce tax liability or plan for tax liability separately.

To know more about estate planning you may contact us on 9879956949 or email us at hardik@niveshplanner.com.