Estate planning – meaning and benefits

Proper estate planning is the next step after a person has completed proper real estate planning. the process of planning and organizing a person’s financial and succession affairs refers to Estate Planning. An Estate Plan that incorporates a person’s wishes about his estate is known as Estate Management, Estate Preservation or Estate Legacy post-life. This means that it will increase and preserve your financial security through the estate’s accumulation, conservation, and distribution.

Estate planning has the ultimate goal to satisfy the estate owner’s wishes by ensuring that the estate is passed to the intended beneficiaries. This often includes efficient tax and succession planning, avoiding or minimizing court proceedings in succession matters, and obtaining probates.

In India, the introduction of the Estate Duty was in 1953. It was repealed in 1985. We do not have an estate tax nor estate duty today, unlike other advanced countries. Estate Planning could be the best way to minimize Estate Duty. The formation of Trust Structures to reduce Estate Duty/ Tax levied on any property transferred at death came into play.

Some people might not see the need for estate planning until they are older. Others may believe that Estate planning is necessary to provide financial security in retirement and facilitate the orderly disposition of property upon death. It is impossible to predict the time of our death. Planning your estate should be started as soon as you own property or have dependents. Estates are property.

What is Estate planning –

An Individuals estate includes all the property that the person owns or controls until the time of his death. Planning for the disposition of property is part of estate planning. Each estate is unique in a certain way. You may be wondering who should design and draft your estate plan. A certified financial planner or lawyer can also be of assistance.

Estate Planning allows a person to preserve and protect their estate and have their wishes fulfilled after their death. You can lose A lifetime of hard work and dreams if you don’t plan.

Estate planning isn’t just for the rich. Estate planning is available to anyone with property and has preferences about how and when the property should be transferred after they die. The tax aspects of estate planning can be very beneficial for the wealthy. Individuals with small estates can still benefit from financial planning to provide financial security for their loved ones.

Proper estate planning answers these questions.

What happens if I fall ill?
Who will decide what type of care I get if I am mentally or physically incapacitated?
What is the profound way to disperse the property?
What happens if you do nothing?
Are there huge bills to PAY?
what will be the source of income to pay the bills?
Is there a way to lower estate settlement costs?
will there be enough money to support the spouse who is surviving?
how to reduce the financial burdens my children face?
Is it possible for grandchildren to go to school and learn?
What are the best ways to give gifts to charitable organizations?
What’s the purpose and need of estate planning?

Why is estate planning so important?

Because it helps you achieve various important objectives, such as a harmonious and planned succession and disposition. This allows you to ensure that your money and assets go to those you choose. You can provide support for your minor children if they are unable to work or become incapacitated.

The design is to support widows who have no work and have two or more children. She will not be in any discomfort if her husband has a solid estate plan. After her husband’s death, there will be a proper arrangement for her children. There is a higher chance that both spouses have already established some financial security, especially if younger. Both spouses may be eligible for retirement benefits through their work.

However, if one of the partners dies, it will typically decrease income for their survivors. The amount of pension paid out to the spouse in the first stages of employment is usually lower. Estate planning is a requirement to compensate for this lacuna.

When planning an estate, children are the second most important concern. After providing for the spouse who is surviving, this should be the first. The normal procedure for small estates is to pass all property to the spouse who survives with the distribution of the children at the second death.

Because of the increasing prevalence of divorce and remarriage in Indian families, planning for the final distribution to the children is often done while the spouses are still alive.

Benefits

It’s not unusual to see families with children from different marriages. A person with children from more than one spouse can have problems. Is the treatment of all children equal.? Will the second spouse distribute all assets equally if everything passes to them? Estate planning is essential for couples in these situations.

Common solutions include trusts that provide for the spouse who is unable to care for themselves and leaving corpus (assets) in trust for the beneficiaries named by the deceased.

An individual must accept that they will die to implement an estate plan. This is something that very few people can handle. Many highly skilled professionals are comfortable in high-pressure environments such as finance and international business, but they are reluctant to accept the inevitable death of their loved ones.

The estate owner’s family is the one who ultimately suffers when this happens. They are forced to maintain some order in an estate that has become chaotic as their standard of living is affected by the decedent’s death. Estate planning is essential to ensure your family’s success and fulfil your wishes during your lifetime and after you depart from this world.