Estate Planning

We consider securing your financial future as our responsibility as much as yours. Estate planning in India is a way to assure a safe future for your family. And when it comes to deciding the best for your family, you need to consult professionals. Get the expert guidance to develop an estate plan and allow smooth transfer of your property with minimum tax liability.

WHAT IS ESTATE PLANNING

Estate Planning is a way to ascertain how a person’s wealth will be preserved, managed and distributed after his/her demise. It executes a plan of action that establishes transfer of assets of demised persons to beneficiaries in a tax efficient manner after life.
 
WHY ESTATE PLANNING IS MUST:

Single: People generally don’t think about estate planning in India when they are young amid their busy schedules, believing they will get sufficient time later.In case of a single person, nobody knows about the wealth of the person and after his/her demise,that property can go waste and forfeit by someone.
Family: Estate Planning determines who will get their property. A person can name people as beneficiaries for specific assets. One can also name beneficiaries for any property that he/she doesn’t list — the “residuary” of the estate. It is necessary to rule out possible conflicts in the family over your assets.
 
STAIRWAY TO ESTATE PLANNING:

• Make a List: Make a list of all your assets, belongings, Debts and Liabilities
• Distribution and ascertaining beneficiary: Decide the detailed distribution of all your belongings and ascertain the beneficiaries
• Draft a will: Draft a legal declaration of wishes regarding the disposal of your property
• Appoint an executor: Appoint a professional who can convert your wishes into reality after your departure to heaven.

ADVANTAGES OF ESTATE PLANNING:

Tax Efficiency: Estate planning supports construing your assets in a way that minimizes tax liabilities, ensuring that more of your wealth is passed on to your beneficiaries rather than being lost to taxes.

Asset Protection: By creating trusts and drafting will, one can protect assets from creditors and legal claims, ensuring that his/her wealth remains intact for your heirs.

Legacy: Estate planning allows one to specify how your assets should be preserved, managed and distributed according to your wishes, ensuring that legacy is preserved as desired.

Avoiding legal disputes: By clearly outlining the distribution of assets, chances of disputes, legal complications and family conflicts is reduced to a greater extent.

Assure a safe future for families: Through wills, trusts, and other estate planning tools, one can ensure that their dependents, such as minor children or elderly parents, are financially secure and cared for after your passing.

Satisfaction: As you know that you have planned well and your loved ones future is safe, it brings peace of mind, allowing you to focus on enjoying life without worrying about the future uncertainties.

COMPONENTS OF ESTATE PLANNING

DIFFERENCE BETWEEN ESTATE PLAN AND A WILL

You might be wondering if the estate plan and will is the same and if not then what’s the difference. To clear your confusion, estate plan is a broader term which encompasses planning for asset management and distribution. Will is a legal document which is simply one of the components of the estate plan. Estate plan outlines management and distribution both while you are alive and after your demise. While will turns effective only after you pass away. 

WHY TO APPOINT A PROFESSIONAL FOR YOUR ESTATE PLANNING:

• If you value your peace of mind and the answers to below questions are YES, then you definitely need a Professional:
• Do you think that all your properties after your lifetime is transferred to your legal heirs/Successors without any hassle
• Do you think that your hard-earned money after your departure to heaven should be used for needy people or for noble work
• Do you think that after you all your wealth is realized properly, liabilities are paid off well and rest is in safe hands in tax efficient manner
• Do you want to ensure that all your valuable assets after you are in safe hands?

IF YES, CONTACT US RIGHT AWAY!

ROLE OF A PROFESSIONAL IN ESTATE PLANNING

Professional Advisors like Finstreet India have a greater role to play in your efficient estate planning in India and securing your financial future. Its role can be assessed as:-

• Assessing the Estate: Estate planning in India begins with Estate assessment. The first and foremost step in estate planning is to assess the value of the estate and determine the tax implications of the transfer of assets. Only with the correct valuation and assessment, a professional can help determine the best strategies for minimizing the tax liabilities and maximizing the value of the estate.
• Developing an Estate Plan: A professional can help develop an estate plan that outlines the distribution of assets, identifies beneficiaries, and establishes trusts or other arrangements that can help protect assets from creditors or other threats.
• Ease in drafting the Legal documents: With the help of an expert, drafting legally binding documents such as wills, trusts, and powers of attorney becomes much easier and simplified.
• Updating the Estate plan: An estate plan is not a stand alone event, but rather is a continuous process that requires regular review and updating. A professional can help ensure that the estate plan remains up-to-date to reflect changes in personal circumstances, tax laws, and other factors that may impact the distribution of assets.
• Minimizing taxes: Financial Advisors not only help in tax compliance but also develop strategies to minimize your tax liabilities. They help in tax efficiency with perfect planning and options explored.
• Retirement Planning: Role of experts is not limited to drafting will and trust but it also engages in retirement planning. Planning your retirement is crucial for planned and secured sustenance of life. 
• Actuating the transfers: Successful transfers of assets and properties is facilitated by working with financial institutions, legal representatives, and other parties involved in the process.

FREQUENTLY ASKED QUESTIONS:

1. What is a will?
Will in simple words is your legal wish. It is a legal document which contains the process or the way in which your property would be shared or it directs what should be done with the property after your demise.

2. Is will and trust the same?
No, both will and trust relates to estate planning but they serve different purposes and objectives. A will is a legal document that outlines how your assets should be distributed after your death. It goes into effect only after you pass away and typically goes through probate, a legal process that can take time and may be public. A trust, on the other hand, is mainly an asset distribution tool which allows you to manage your assets while you're alive. Trusts can help avoid probate and maintain privacy. Further, it also provides more control over when and how assets are distributed to beneficiaries.

3. What happens if someone dies without a will?
If you die without a Will, the state law on property distribution comes into action. Intestate means dying without a legal Will in place, and intestacy is the process your estate would go through without a Will. Typically, when a married person dies with a spouse still living, the estate clearly passes entirely to the surviving spouse. No matter if your surviving spouse decides to remarry, the property would still be transferred to him/her. But with proper estate planning, you can decide to distribute your property as per your wishes to whoever you want. In some exception cases, where spouse is not alive or other complications, the relevant laws applies and actions are taken accordingly. If a person wants their assets to be disposed of differently than is set by statute, then a Will is required. Over all, dying without a Will can cause huge problems for your loved ones by adding unnecessary stress and expenses to an already emotional and difficult situation. Here’s good news: creating a Will does not have to be complicated.

4. What is the right time to initiate Estate Planning in India?
Well, it is never too early for initiating estate planning. You can begin it as soon as a Person becomes a legal Adult because life is turning unpredictable these days and having an estate plan is the right decision.

5. Who is a legal heir?
A legal heir is any person who is entitled to inherit a deceased person's estate according to the laws of inheritance. Legal heirs can include:

• Spouse: The surviving husband or wife typically has rights to a portion of the estate.
• Children: Biological and adopted children usually inherit equally.
• Parents: If there are no children, parents may inherit the estate.
• Siblings: Brothers and sisters may inherit if there are no surviving spouses, children, or parents

6. What is a Power of Attorney?
A power of attorney (“POA”) is a legal document that authorizes one person (or multiple people) to act on behalf of the person establishing the POA. In other words, the document creates a legal fiction allowing another person to stand in your shoes to take actions when you cannot, or simply out of convenience if you prefer someone else to do so. POAs can be narrow or broad depending on the circumstances and the amount of authority the individual wants to bestow.

7. Is it necessary to have an Attorney for Estate Planning in India?
It is not legally required to have an Attorney for Estate Planning. Despite no compulsion, it is highly recommended to seek their expertise for better planning and legal compliances.

8. How Estate Planning helps in Tax minimization?
Without estate planning, there are high chances of increased taxes and fees requirements during the transfer of estates. Further through various tactics, such as creating charitable giving plans, establishing trusts and gifting assets during one’s lifetime.

9. What is a Probate?
Probate is a legal process that comes into play after someone passes away. It involves managing and distributing their assets according to their will or the laws of inheritance if there is no will. Understanding this process can help prepare you and your loved ones for what lies ahead.

10. What Are Beneficiary Designations?
A Beneficiary designation is a process to designate where your assets go after you pass. 

11. How Much Does an Estate Plan Cost?
Cost is variable which depends on many factors such as route, traditional or newer. To know the detailed cost contact us.