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| The Concept of Estate Planning |
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Estate Planning is the process of planning your succession and financial affairs to ensure the management of your Estate during and beyond your lifetime and plan your legacy.
Often people spend more time planning their vacations than planning their estates. Agreed that the vacation will happen sooner and it’s much more fun to plan. However, estate planning is much more important because without a comprehensive plan, a significant part of the work you’ve done throughout your life, both at your job and with your investments, can be lost or given to unintended beneficiaries.
Estate Planning involves deciding who the beneficiaries will be, what each will get, and how to perform those transfers with the minimum tax consequences, while making sure that the estate has enough liquidity to meet its obligations.
A common misconception is that estate planning is for the wealthy or super rich, while another is that you need to plan your estate as your grow old. Firstly even people with middle incomes who have worked hard to build a rich portfolio need this to ensure that their hard earned money is not squandered away. Secondly, one mustn’t wait till old age, but in fact this planning should happen at a time when we have accumulated a significant amount of money by way of our investments.
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Some of the essential to dos for estate planning, as shown above are:
• Writing a will
• Identify the executor of the will
• Finalise the guardian if needed
• Make alternate directives, such as in case of bad health
• Ensure enough liquidity to pay off debts
Each of these have been elaborated further. Should you need more guidance on your estate planning, please free to consult our empanelled legal experts. |
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