Estate Planning is "the process of making proper arrangements for the Protection, Preservation and Provision of a person’s assets for the benefit of his/her family and loved ones after his/her time". It encompasses maintaining and enhancing of financial security,standard of living and welfare of the intended class of beneficiaries.
Life is always unpredicitable. Hence it is necessary for each and every person to plan for these unpredictable events. An estate plan can put you in control of your legacy. However, many people think building this type of plan might not be for them.
The objectives of Estate Planning
The Consequence of improper Estate Planning are :
In the event of dying intestate, the property of the deceased will be distributed as per the applicable succession laws. Hindu Succession Act, 1956 is applicable to Hindus, Jains, Sikhs and Buddhists; Indian Succession Act, 1925 to Christians, Parsis and Jews and The Muslim Personal Law (Shariat) Application Act, 1937to Muslims. Laws of succession in case of interfaith marriages, under Special Marriage Act, 1954.
In the absence of proper estate planning, your heirs may not be able to receive any of your property from your estate for a long time. This is because, the succession certificate need to be obtained from the civil court. Another disadvantage of dying intestate is that you will not be able to control which heirs will receive your property.
Estate planning can be complex and it's a good idea to seek the professional advice and assistance of both a financial adviser and a legal professional who is experienced in such matters or an Estate Planner. Estate Planner, with support from other specialists, will be able to come up with a comprehensive estate plan that complies with laws and regulations. If necessary, Estate Planner should consult other relevant professionals such as Lawyers, Accountants, Tax Consultants, Investment Advisors to ensure a unified financial recommendation.
Benefits of Estate Planning :