Without a will, your assets will be distributed according to laws applicable to your religion, which may not reflect your wishes. A will ensures your assets go to the people you choose, prevents family disputes, minimizes tax implications, and provides peace of mind knowing your loved ones will be taken care of according to your wishes.
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Legacy Planning
Estate Planning & Will Creation
Secure Your Legacy and
Protect Your Loved Ones
Legacy planning is considered to be one of the most important financial obligations for any individual. It's about determining how an individual's assets, liabilities and obligations will be handled in the event of death or incapacity. Drafting a will is the simplest method for legacy planning.
"Estate planning is not just about distributing assets; it's about preserving your values, ensuring your loved ones are cared for, and leaving a positive impact on the world."
What is Legacy Planning?
Legacy planning is about determining how your assets, liabilities, and obligations will be handled in the event of your death or incapacity. Without proper planning, asset distribution will be based on laws applicable to your religion, which may not align with your wishes. A well-structured legacy plan ensures:
- Your assets are distributed according to YOUR wishes
- Your loved ones are financially protected
- Tax implications are minimized
- Family disputes are prevented
- Your values and legacy continue
Important Note: Without a will, distribution will be based on the law applicable to your religion. Taking the time to plan now can provide peace of mind and ensure that your legacy lives on as you intend.
Actionable Steps in Order of Priority
1
Organize Your Assets
Begin estate planning by listing out your Assets, Accounts, Investments, Loans and Liabilities. This comprehensive inventory forms the foundation of your legacy plan.
2
Name Nominees
Designate nominees for assets, especially the intangible ones like bank accounts, insurance policies, mutual funds and retirement funds. This ensures smooth transfer of assets.
3
Create a Will
A will outlines asset distribution after you pass. Without it, distribution will be based on the law applicable to your religion. This is the most critical document in legacy planning.
4
Establish Trusts (If Needed)
Trusts manage assets as per your instructions, useful for taxes, minors, or special needs beneficiaries. They provide additional control over asset distribution.
5
Regular Updates
Review and adjust for family changes, financial shifts, and legal updates. Life events like marriage, divorce, birth of children require plan modifications.
6
Seek Professional Help
Estate planning experts ensure a legally sound plan. Professional guidance helps navigate complex legal and tax implications.
7
Advance Medical Directives
Choose a trusted person for financial and medical decisions if you're unable to make them yourself. This includes Power of Attorney and Living Will documents.
What Should Your Will Include?
A comprehensive will should cover all aspects of your estate. Here are the key components:
Immovable Assets
House, Flat, Shop, Land, and other real estate properties with clear beneficiary details
Bank Accounts & FDs
Savings accounts, fixed deposits, lockers, and cash holdings with account numbers and institutions
Investments
Mutual Funds, stocks, bonds, debentures, MLDs, AIF, PMS, and other investment accounts
Insurance Policies
Life insurance, health insurance, and other policy details with beneficiary information
Motor Vehicles
Cars, bikes, and other vehicles with registration numbers and ownership details
Movable Property
Gold, jewelry, precious metals, and other valuable personal belongings
Frequently Asked Questions
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Why is creating a will important?
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Can I change my will after creating it?Yes, you can and should update your will regularly. Life events like marriage, divorce, birth of children, acquisition of new assets, or changes in relationships may require modifications to your will. It's recommended to review your will every 3-5 years or after any major life event.
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Do I need a lawyer to create a will?While you can create a basic will yourself, it's highly recommended to seek professional help. Estate planning experts ensure your will is legally sound, covers all necessary aspects, minimizes tax implications, and stands up to legal scrutiny. Professional guidance is especially important for complex estates or family situations.
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What happens if I don't have a will?If you die without a will (intestate), your assets will be distributed according to succession laws applicable to your religion in India. This may not align with your wishes and can lead to family disputes, delayed distribution, higher legal costs, and your loved ones may not receive what you intended for them.