Estate Planning

One of the goals of every wise individual will be to protect the needs of the loved ones during his lifetime and also after his demise. This is where the need for estate planning arises. An estate is the total of all personal and real property owned by an individual. Real property implies the real estate holding and personal property covers everything else such as cars, household items, shares, units, and bank accounts.

Estate planning refers to the process by which an individual or his/her family arranges the transfer of assets to the legal heirs in the event of death or disability of the individual. It includes the distribution of the real and personal property of an individual to his/her heirs.

In a nutshell estate planning is all about  distributing assets among your beneficiaries. An estate plan aims to preserve the maximum amount of wealth possible for beneficiaries and flexibility for the individual prior to his death.

Objectives of estate planning:

  1. Asset transfer to beneficiaries: Every individual wishes that his/her accumulated wealth should reach the hands of the beneficiary of his/her choice. Beneficiary can be his/her children, parents, friends or any other person.
  2. Tax-effective transfer: To ensure least tax deduction on such transfer of wealth
  3. Planning in case of disabilities: It ensures smooth functioning of asset management within the family in case an individual gets disabled.
  4. Time of distribution can be pre-decided: Individuals having minor children may wish to transfer the assets only after the children attain a certain age, to avoid misuse that may happen due to lack of maturity and discretion.
  5. Business succession: Organized succession or winding up can be defined in case of an individual handling business
  6. Selection of trustee or guardian or the executor: An individual needs to be appointed to carry out the functions like –
    • Distribution of assets to the beneficiaries as per the individual's wish
    • To pay testamentary and funeral expenses
    • Applying for a probate
    • Paying all the expenses and outstanding debts
    • Ensuring all the benefits due to the deceased, such as life insurance, pension, and other benefits are received
    • Arranging for filing of tax returns

Our Role

Steps in the estate planning process:

  • Relationship establishment
  • Information gathering
  • Determining the client's financial status
  • Draw out a plan of transfer
  • Implementing the plan
  • Regular reviewing of the plan