You must have heard the famous saying “Death ends a life. Not a relationship”. You may leave this world, but the wealth you have collected in your lifetime remains behind. This money needs to be distributed among your loved ones.This shows the importance of estate planning. Imagine your loved ones fighting among each other, for the wealth you have left behind. Worse…There is nothing you can do about it.
What is estate planning?
You accumulate wealth by working hard across your lifetime. This wealth called an estate has to be passed on to your loved ones after your death. Estate planning is a method of passing on wealth to your loved ones or heirs, in a hassle free manner.
Your estate may include:
o Your home
o Plot of land.
It also includes movable assets life gold jewellery, car and also costly furniture and antiquities.
Remember:
• You have hardly any wealth to transfer to your loved ones? Do you still need to make an estate plan? No problem… Estate planning is for everyone. If you have a few thousands or a few crores, you still have to transfer this money to your heirs.
• You can will, only what you legally own. Your will is enforced only after your death.
• You also transfer your liabilities (loans you have not repaid in your lifetime), to your loved ones. Your loved ones may hate you for it…But yes, this is also estate planning.
When should you make an estate plan?
You are never too young to make an estate plan. If you have wealth to transfer to your spouse or children when you are in your 30’s or 40’s, then you must make an estate plan. Life is full of uncertainty. You never know when your time comes.
The most common tool of estate planning:
o Will
What is a will?
In a will you state how you would like to distribute your assets such as your land or home, your car, gold jewellery, or even costly paintings and antiquities after your death. This is simple…Who gets how much. You want to give your Mercedes car to your son. Your collection of paintings goes to your daughter. You write this in your will and your wish is honored.
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