Yes, you have an Estate!
It may be small or large; created or inherited; cash or assets - but there is an Estate. And in the event of death, you have to leave it behind.
You also have a choice - You can provide instructions about distribution of your Estate to people or causes that are dear to you; or the laws of succession would decide how your wealth is distributed.
Unfortunately, the laws of succession do not differentiate between individuals or situations. They are same for everyone. As per the Hindu law of succession, the Estate of an individual has to be equally divided between his wife, children and mother. If none of them are there to receive the estate, a second and third level of successors are defined.
Most of us would have very specific wishes -
- Aging parents who may need medical attention
- Physically challenged relative
- Charitable cause that is dear to us
- Distribute wealth in tranches and not immediately
What if you do not create an Estate Plan?
The government has an Estate plan for you in that case. However, do you really want someone else to decide on the distribution of wealth that you created?
Since you have created your Estate with your hard work, you should also control the manner in which it would be distributed when you are not around.
Estate planning is for Everyone
Many of us think that Estate Planning is only for the rich. Nothing can be farther away from truth. In fact, if you have limited possessions or wealth, you should be more careful that your intended beneficiaries get complete control.
How to create an Estate Plan
In the most basic form, you can create an Estate Plan by writing a Will for yourself.
Or, if you have wishes and family structure that are more complex, you can look at more advanced tools of Estate Planning like Private Family Trusts, Business Succession Plan etc.
Contact us to know more..