Why is estate planning so crucial? Here are 4 reasons!

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WHY IS ESTATE PLANNING SO CRUCIAL? HERE ARE 4
REASONS!
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Its crucial to think about the future of your
assets after you are gone. What would happen to
the assets you have accumulated during your
lifetime? What are the rights of inheritance in
the event of death? To ensure that your assets
are placed in the right hands after your death,
it is important to understand the concept of
estate planning. An estate comprises everything
you own, including your home, car, land, life
insurance, furniture, bank accounts,
investments, or other property. An estate plan
puts you in a position to manage the assets and
the rights to inherit them. It gives a written
record of your intentions. It makes the process
of transition of assets seamless, helps you
avoid disputes on inheritance, deters
complexities, provides assets to the right
beneficiary and reduces the burden on family. But
what would happen in the absence of an estate
plan? In case the person dies without an estate
plan in place, he is said to be intestate. In
such a case, the state machinery and courts would
plan the distribution of their assets. Three laws
govern the estate distribution in India- the
Hindu Succession Act, 1956 (applies to the
Hindus, Sikhs, Jains and Buddhists), Indian
Succession Act, 1952 (Christians, Jews, Parsis),
and the Muslim Personal Law (Muslims only). The
Hindu Succession Act has separate laws governing
the estate for males and females. Within the
male and female segment, there are
classifications Class 1, 2 and 3 Legal Heirs
which include close family members. Indian
Succession Act has separate provisions for Indian
Christians, Jews and Parsis for different
scenarios. A fair amount of documentation is
required to prove the title of property under
all these laws. This can lead to delay,
complexity, uncertainty, expenses, disputes and
confusion. Hence having an estate plan aligned
with your wishes helps avoid devastating
consequences on your family.
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LETS LOOK INTO THE IMPORTANCE OF ESTATE
PLANNING
An Estate Plan Protects Beneficiaries
The main component of estate planning is deciding
who the heirs are to your assets. An estate plan
organizes your familys finances to ensure their
wellbeing after you are gone. It lets you avoid
taking your family through lengthy and
complicated legal processes, avoid disputes and
secure their future. You can avail e state
planning services at EldersWealth, a leader in
financial services in Bangalore. A name to
reckon with among e state planning consultants
in Bangalore, EldersWealth ensures that the
crucial step of passing on your assets to your
beneficiaries is made hassle-free
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Estate planning Protects Children
How to deal with the unthinkable circumstance of
dying without a surviving spouse to take care of
your children? The estate plan should carry the
names of your childrens guardians, to ensure
that your children are cared for in the manner
you wish for after your death. In the absence of
an estate plan, the court appoints a legal
guardian for them usually, a family member. A
third party, such as a family friend, can also
petition the court to be appointed as the
guardian. In case the minor child has no
surviving family members and if a third party
doesnt step in, the child could enter the
foster care system.
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Estate Planning helps avoid taxes
Creating the least possible tax burden for your
heirs is another key aspect of estate planning.
Estate planning helps in reducing the state
estate taxes and state inheritance taxes partly
or completely. Strategic planning using a
combination of trusts, tactical account creation,
maintenance and more helps decrease overall tax
burden on your loved ones.
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An Estate Plan Eliminates Family Messes
Very often, lack of estate planning leads to
dirty quarrels among family members. Families
get pitted against each other and end up in court
to settle disputes that sprouted due to lack of
an estate plan or a will. An estate plan becomes
even more urgent if you have more than one spouse
or have children from more than one family. You
would be doing yourself and your family a favour
by having an estate plan in place. There are
several estate planning service providers in
Bangalore that offer easy ways to pass your
assets to your beloved after your death.You may
take expert advice for avoiding family feuds
from them. To conclude, an estate plan lets you
offer a protective shield to your assets as well
as your loved ones after you are gone. Without a
plan, your heirs could be weighed down by tax
burdens and the courts could designate how your
assets are divided or even who gets to raise
your children. Reach out to EldersWealth for
securing your assets and protecting your heirs!
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THANK YOU!