What is estate planning?
Estate planning in simple terms refers to the passing assets/investments down from one generation to another. You decide how much of your estate – be it property(s), car(s), personal accolades, financial investments, etc. – you want to pass on to whom and how, after your demise. The easiest way to do it is through making a will.
Why should we make a Will?
We all are busy in creating wealth –
- For our consumption
- To buy assets like real estate, car, electronic gadgets etc
- To achieve financial goals like children’s education, marriage, retirement etc
But, alongside we should also make a provision so that in our absence, our assets will go to our beloved ones. (This process of transferring assets is also known as ‘bequeathing’)
If we do not write a Will –
- Our assets will get distributed among all our legal heirs as per succession/prevailing of respective religion.
- And not as per wishes.
We should write a Will –
- To avoid disputes among your family members.
- To make the process of transferring wealth smoother.
Will is also a great tool for documentation. Many of us do not document all our assets properly. The result is that many a times even close family members are not aware of all the assets of the deceased person.
- If we do not tell about all our investments to our near and dear ones, it will be very difficult for them to find out details of all our assets.
- Many assets (online as well as offline) thus remain undiscovered and unclaimed forever.