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In simple terms,
How Does It Help?
On the benefits of estate planning,
There is a misconception that registered nominees are beneficiaries of assets in the future. According to law, the beneficiary is the legal heir as stated in the will. In the absence of a will, the transmission of assets happens as per succession laws of the country. A nominee is just the trustee of your assets.
Minimise Taxes
Statutory changes have also necessitated the significance of succession planning. Currently, there is no concept of inheritance tax and estate duty in India; however, there is a demand for re-introducing these concepts. Thus, estate planning can help avoid legal hassles.
Neha Pathak, head of trust and estate planning of a private wealth management company, says, “If a person dies without drafting the estate plan, the family of the deceased may have to spend a lot of time, effort and money. Also, the court proceedings could last for a long time if the estate is contested. If you name responsible people as account beneficiaries (meaning people with no debts or disabilities), it could be a great way to avoid probate and its associated legal costs.”
How Is It Done?
Once you have identified your requirement, you can go ahead and create an estate plan. It can be done in multiple ways. It can broadly be classified into three modes which include wills, use of trust structure, and family constitution. Talking about the different means of estate planning,
– Times Property
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