Estate planning is the act of preparing for the transfer of a person's wealth and assets after his or her death. Assets, life insurance, pensions, real estate, cars, personal belongings, and debts are all part of one's estate. Estate plans must be written, signed, and notarized by the person who owns the estate.
Nomination can be registered at the time of initial investment or at a later time. A nomination form must be filled up, with the name of the nominee(s), share each nominee is to inherit, and the details of the guardian, in case the nominee is a minor. The investor must also sign the nomination form.
A Will conveys the wishes of the person writing it with respect to the disposal of their wealth after their death. There is no particular format for writing a Will; however, for the will to be valid, it must be signed by two witnesses. It makes sense to list the wealth one holds and include the names of persons to whom it will pass on, in an unambiguous manner. It is a good idea to register a Will, although this is not compulsory.
Wealth can be transferred during the lifetime of a person to their near and dear ones, especially family members, as gifts. Gifts given to relatives, received on the occasion of marriage, etc. are exempt from tax. A gift deed needs to be made when gifting an immovable property.
*Joint holdings and nominations are the simplest tools you can use to help your nominee access your wealth after you.
*It is important to rebalance your wealth during your lifetime, as well as to have a financial plan for your old age.