What are the most important things to know about estate planning?

Estate planning is a process of preparation/ plan through which we can club together our entire movable and immovable properties/assets which we desire to bequeath after our death.

The benefits you will receive by estate planning are as follows-

·         You may reduce taxable estate by making annual gift;

·         Make power of attorney for directing/managing other investment and assets;

·         Make or update plans like insurance/ other things;

·         Make limits of your estate taxes by creating trust accounts in favor of beneficiary;

·         You may create Will;

·         You may mention the name/names of executor who will oversee the terms of Will;

·         You may appoint guardian for living dependents;

·         You may make planning for funeral arrangements/ expenditures.

·         And many more….

 It is better to make Will in lieu of dying as an intestate. Most of the people at young age procrastinate estate planning for the myth that estate planning is not required at younger age and keep it aside exclusively for the older part of their lives. Estate Planning due to the thought process that it is required at later stage of our life and it is not a priority in their lives. In fact, old age also leads to delay in making will due to several health issues. In India the awareness of estate planning is less and for this reason young generation prefers to follow others instead of being wise with their decision.

State Estate taxes/ State Inheritance taxes can be avoided by transferring assets to legal heirs. Such taxes cannot be avoided completely but we can protect our heirs from giving huge amount of taxes.

It is a myth that common man does not need to do estate planning because only the elite class with huge properties needed. But, it is not so.

Estate Planning as earlier mentioned is one kind of transfer of a person’s wealth, asset and his/her personal belongings, insurance, pensions, real estates, cars, debts etc. In legal parlance, we can say that estate planning is a flow from of his own wealth to his loved ones to keep his family/ loved ones protected in future through an organized manner.

We all need to know why do we need estate planning. All these are exclusively only for those persons who are living extravagant lives. Do you really need to do estate planning?

The answer is yes…… Why?

Middle class families make their wealth with their hard earned money and with lot of effort. It is important that this accumulated wealth goes to the right person whom we desire to bequeath. In the absence of a Will this is distributed in accordance with the Indian Succession Act, 1925. Thus, it can also go to an undesired person.

List of things which you have to incorporate/include in estate planning are-

1.      Personal belongings;

2.      Debts;

3.      Savings;

4.      Wealth,

5.      Personal bank account;

6.      Car;

7.      Jewelers;

8.      Furniture;

9.      Arts;

10.  Insurances

11.  Real estates;

12.  Digital Assets.

13.  And many more…..

Why Estate Planning is important?

1.      We can stop our legal heirs from overpaying in taxes;

2.      Protect families with young children/ old parents;

3.      It eliminates family squabble/ messes when we will be no more;

4.      You can make sure that your business will continue smoothly in your absence;

5.      You can plan for incapacitated persons;

6.      Your property will go to beneficiaries.

7.      And many more….

Estate planning is also important for young generation, people who have limited wealth, unmarried people, people who have lot of business and children.

The modes of making estate planning are-

·         Will;

·         Trust;

·         Gift;

·         And many more….

On 1^st February,2017,Indian Finance Minister, Mr. Arun Jaitley, presented the Government of India’s annual financial statement for 2017-18, commonly referred to as the Union Budget. 

Here we can find that he shows us the way out where we need not to bear taxes on our wealth. He said that Gifts to charitable trusts and those under a Will to testamentary trusts, continue to be specifically exempt.

Please take all the proper information before making your Will…DiL SE WiLL is the pioneer in the field of Estate & Succession planning and it has buckled down seriously to give protection to your legacy. If you want to protect your legacy, please contact us at www.dilsewill.com

Thanking You.

DiL SE WiLL is wishing you a long and healthy life.

We celebrate your success in life.

Let’s add the awesomeness in our lives.

Author:  Shreya Nandi (Legal- executive officer of DiL SE WiLL)