Estate planning is the process of anticipating and arranging, proactively during your lifetime for the disposal of your estate after your death.
Estate planning typically attempts to eliminate uncertainties over the administration of your estate and maximize the value of your estate by reducing taxes and other expenses.
Though Estate Planning is vital, quite often it is neglected as an important element in one’s financial planning process..
Estate planning essentially involves structuring your personal financial affairs in such a way that, upon your death:
- estate duty, if applicable, is minimized
- there is sufficient liquidity to meet the estate’s financial obligations
- inheritances are sufficiently protected for your heirs
An Estate Plan does not only include measures that come into effect at the death of the owner of the estate but there are also planning aspects that may be put into effect during the lifetime of the estate owner. Typically these would be:
Operative during the lifetime:
- Gift, Trust, Joint Holding, Power of Attorney, Family Settlement, Mutation
Operative after death:
- Will, Nomination.
Person’s Last Will & Testament is one of the most important documents to be drawn up during one’s lifetime as it contains his/her final wishes about the assets accumulated over the years.
But, above all, a well drafted ‘Will” would save your dear ones from many financial and legal tangles, when you are not around. Thus, it would ensure peace of mind to those whom you care and leave behind and are financially responsible for.
Preparation of “Will” would need (i) Guidance towards its need, (ii) its essential components and (iii) safeguards one need to take when preparing his/her ‘Will’.