Wills are important.
We all know this fact, yet most of us don’t write them and even if we do write a Will, we rarely make any effort to ensure that it’s not defective.
Movies and books have used the angle of Wills— missing, suspicious or fraudulent to often add an interesting twist to a tale. But the truth is often stranger than fiction and the Courts are full of stories of conniving relatives, greedy siblings and morally corrupt proceedings.
No one can truly predict the future, but we can always take cues from the present and add our experience to see a few steps ahead… often that understanding makes a big difference in the path we finally choose.
When clients walk into our offices, they are usually in bereavement. They are battling the emotional trauma of losing a loved one and we do help them with our advice and practical handholding, but we also see that they feel exhausted by the sheer magnitude of the work to be done from affidavits to be signed to documents to be notarized. We know that each legal process takes its own time, yet that is also a time of grief for our client.
Engaging shows and movies like Modern Family and We are Family, depict colourful and vibrant blended families. Families where different people of varied sensibilities and different upbringings find a common ground and a create a unique blend much like a slurpy mango-strawberry-cacao smoothie!
Reel life often depict the best part of reality. These shows reveal the absolute uniqueness of a blended family yet real life can be a bit more complicated and daunting because different people who are heirs to different estates come together— there’s your new spouse, your new spouse’s children/step-children and your own kids/step-kids.
We all know that writing a Will is important, yet most of us never write it before it’s too late. As estate planners, we often see our clients struggle with the consequences of the lack of a Will when a family member passes away.
Working through a lack of estate planning when you are grieving brings in a barrage of emotions from anxiety to panic. In such a turbulent time, clients don’t only need good advice but also experienced help and trustworthy support. That’s the reason we decided to go beyond preventive armchair solutions about ‘what should be done’ to providing complete support and hand-holding when the bereaved family members are rendered clueless and anxious due to the lack of a Will.
“What do I do? My husband looked after all the financial decisions. I don’t even know how many bank accounts or assets we have and right now I don’t know how to pay his hospital bills.”
We received this desperate call from a lady who recently lost her husband to Covid-19. Her husband had been a successful professional and was an integral part of the senior management of a global business. Now, she was struggling to pay the bills because he had never shared the bank details. She called us because she was searching for a way out of this sudden monetary chaos in her life while grieving for her husband. Her call was not alone, it was one of the many we received during the height of the pandemic. Families struggled to access bank accounts of the deceased as the bank accounts were singly held and did not even have a nomination! The pandemic made these situations worse because families that suffered the loss of an elder or of the sole-decision maker did not lose just their loved ones, they found themselves incapacitated without proper planning of the family’s personal and financial affairs.
Gone are the days where marriage meant a lifetime of togetherness and commitment. Unfortunately, today divorce is no longer a dirty word but an ugly reality in India, across all age groups and irrespective of social strata too.
Most often, a divorce entails ugly wars between fighting couples and extended family. Given the scale of bitterness it is imperative to safeguard yourself not just for the present but even for the future.
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The concept of family has evolved over time. Today, we have concept of blended family where spouses have children from their earlier marriages.
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Estate planning is critical to ensure that your loved ones inherit only your wealth, and not a messy estate with legal complications and family disputes.
Estate planning is all about anticipating and arranging for the administration and disposition of one’s assets during one’s lifetime. While wills and trusts are the most commonly used tools of estate planning, there are several other tools one can use for the seamless transition of one’s assets to the next generation after one’s demise. This can go a long way in avoiding potential conflict and uncertainty.
“The right to live with dignity includes the right to die with dignity, under Article 21. Why should I be kept in misery and dragged on if I am terminally ill and have become virtually a vegetable,” said Professor DN Jauhar, after registering his Living Will. Jauhar, along with his wife, Professor Adarsh Jauhar, residents of Chandigarh, claim to be the first people in the country to have executed and registered living wills, in December 2019.
Living wills, also known as advance medical directives, are legal documents that allow individuals to specify their preferences for medical treatment in the event they become incapacitated and are unable to communicate their wishes.
On Mother’s Day, diligent financial planning can ensure smooth sailing through every stage of life. Retirement will go well if you have an adequate emergency corpus, life and health covers in place
On Mother’s Day, let’s look at the steps single mothers should take to plan for their key goals
Leena Surve, now 43, is a single mother. The Mumbai resident separated from her partner when her son Shlok, now 18, was just eight months young. A seasoned professional with two decades of working experience as an executive assistant in a private firm, Leena has goals — and the financial plans to achieve them — in place.
To avoid any chances of a dispute, one should as far as possible bequeath a particular asset to the named nominee.
The entire objective of writing a will is to ensure smooth and dispute-free transmission of our wealth to our loved ones. No one wants to imagine their family getting embroiled in long legal battles and the will getting challenged in court. Hence, utmost care must be taken to write a testament that is unambiguous, minimises chances of disputes and is easy to implement.
Here are some important and practical steps for this.
Today, where technology has practically transformed almost all businesses, estate planning and legal services can’t be far behind. We need to impress upon and push our policy makers to introduce the right laws and amendments to embrace these technologies, eventually making it convenient for all stakeholders.
Technology and digital revolution have truly transformed our lives. Technology has been a key and positive disruptor in industries ranging from hospitality to banking, and health care to entertainment. In estate planning too, we believe there are areas where we need to embrace technology and digitalisation to whittle down certain serious obstacles and bring in much-needed efficiencies in the system.
The executor’s key responsibility is to gather details of all the assets that are mentioned in the estate, protect these assets and distribute them to beneficiaries as per the instructions in the Will
Through a Will, the testator – that is, the person preparing the Will – can eliminate, or at least minimise the chances of disputes amongst legal heirs after her demise. However, making a Will is one part of your responsibility. To ensure that your instructions in the Will are carried out, it is equally important to appoint the right executor.
Original article was published on Moneycontrol.com
An ethical Will is a special kind of legacy letter that aims to pass on guiding principles, memories, spiritual beliefs, and wishes for your family’s future
The result of the current pandemic has been the stark realization of how fragile life can be and how important it is to plan for passing on your assets to your loved ones. But are your assets only confined to the money you made, the real estate you bought and the shares you invested in?
What about your life experiences, your learnings, your success mantras, your core beliefs and values that guided you all throughout? Can you let them die with you or would you like to pass on the story of your life and make it a lasting legacy beyond money and real estate?
How to draft a functionally sound power of attorney
A PoA helps to get your administrative work done with ease in case you fall ill, become too old to manage daily chores or live abroad and can’t visit India often
A PoA is a powerful tool that empowers a close family member or a trusted friend to take care of our finances, in case we are unable to ourselves. That is why many non-resident Indians (NRI) and even senior citizens use it.
Use it well and a PoA can help you in difficult times. But an ill-framed PoA can bring lots of harm. Here’s how to make a solid PoA.
Original article was published on Moneycontrol.com
Should you write a Will yourself without taking professional help?
While a DIY approach may help save some costs, one should adopt this route only when one is sure that their situation is pretty straight forward and would not put the beneficiaries of the Will to any inconvenience
In this digital age, information flows freely, enabling one to manage his or her financial planning needs without engaging a domain expert. With a bit of effort and research, anyone can understand aspects relating to savings and investments. Hence, there is a growing trend of individuals managing their financial plans themselves. Writing a Will is a critical component of an individual’s financial plan. So, will a do-it-yourself (DIY) model also work while writing a Will?
Explained: All about various Wills for smooth wealth transmission
Writing a Will is an extremely important activity, and it is highly advisable to take proper guidance from an experienced professional
Privileged and unprivileged Will
The option of a Privileged Will is available only to people in Armed Forces and while engaged in warfare or in a warlike situation. Considering the associated danger of sudden death, lack of time, uncertainty of events in their line of duty, certain formalities of a standard Will are relaxed in a privileged Will. A handwritten privileged Will may be valid even if it is not signed by the testator or witnessed.
Avoid giving unlimited rights while handing the Power of Attorney to manage your assets
A PoA can end up in a messy litigation between the principal and attorney holder. Choosing the right person to represent and deal with your hard-earned money is a critical
Understanding Power of Attorney
What is PoA? It is a legal authority granted through a formal written instrument, whereby a person (principal or donor) authorises another person (agent or done) to act on his/her behalf.
Starting your career amidst COVID-19? Here's how you must plan your money matters
Millennials have witnessed their parents losing jobs or taking pay cuts. They have consequently woken up to the fact that traditional methods of financial planning may not provide an adequate buffer
Like the global financial crisis of 2007-2008, the economic challenges caused by the coronavirus pandemic has impacted financial planning in an unprecedented manner. Millennials have witnessed their parents losing their secure jobs or taking pay cuts, which have shaken up household budgets and financial goals. They have consequently woken up to the fact that traditional methods of financial planning may not provide an adequate buffer against a nationwide or a global economic depression.
Therefore, new earners should keep the following aspects in mind while making their financial plan.
Why the rich must make life insurance an integral part of estate planning
Life insurance provides a large, tax-free sum of money to the beneficiaries
Madhavi knew how crucial these life insurance proceeds were going to be for planning Varun’s requirements, especially after her time. Just like in Madhavi’s case, life insurance can be a valuable element of an estate plan and can provide solutions to a wide range of objectives. Let’s look at some of them.
Immediate liquidity
On demise, the legatees may be required to obtain certain court orders such as probate, letter of administration or succession certificate to claim assets. Assuming no dispute amongst legatees, this may take up as much as a year and in case of any legal dispute, the wait can really be a long one.
Own assets in many countries? Prepare separate Wills to ensure smooth transfer to beneficiaries
With the increase in the number of expatriates globally, a large number of individuals now own assets across multiple jurisdictions. As succession laws differ across countries, formulating a comprehensive estate plan is a critical decision for individuals
In his Will, which was executed in London, Sandeep had disinherited his daughter from his estate, citing irreconcilable differences due to the daughter splurging the family wealth on vices. All his assets were bequeathed solely to Damini, who was also appointed as the executor to his estate.
One year after COVID: Are you financially prepared for career disruptions?
Job losses and pay cuts due to the pandemic may have abated with the economic revival. But how prepared are you for the next black swan?
“Nothing serious. It was just an anxiety attack; it seems like you are under some kind of stress, so take it easy,” said neurologist Dr Gupta looking at Prashant’s CT scan report. Though Prashant was relieved, deep inside, he knew the root cause of his stress. Prashant’s employer, a leading automobile manufacturer had to let go around 200 of its employees last month and the company had indicated that it is still not done with firing.
How to bequeath your digital assets
When planning for your estate, you should consider preparing an e-register of all the digital assets
As they say “Death is the golden key that opens the door to eternity.” Unfortunately, that key won’t be able to unlock your Bitcoin wallet or provide access to your LinkedIn account. There is no doubt about the fact that technology is an integral part of our lives. We have virtual friends, family, love, fights, business and, of course, assets. On death of a person, the real existence ends immediately but the virtual life lingers on for some more time. These digital assets provide lasting legacy to loved ones about the things that were important to the deceased, his/her values and memories.
Will or Trust? Here’s how you must choose the best way to transfer assets to your loved ones
A Will works for smaller families with simple inheritance objectives, is cost-effective and easy to draft and modify for the testator. Through a Trust, you can achieve advanced and tailor-made estate-planning objectives
First, the Will captures the desires of individuals on how their assets should be distributed after their demise and it remains just a piece of paper during their lifetime, but a Trust may be created and made operational during one’s lifetime (Living Trust). A Trust may also be created through a Will (a Testamentary Trust), which then comes into force after the demise of the person.
Follow these 7 steps to transfer assets smoothly to heirs after your time
Missing or incomplete documents could lead to delay and perhaps avoidable legal costs
Prepare an asset and liability register
Sounds uncomfortable? But just for a moment, imagine that tomorrow morning you do not wake up, as you have left this world for a journey to another world. Will your family be able to manage their financial affairs? Do they know about all your bank accounts, your investments, your debts, your receivables, etc? Have you collated all such information at one place and informed your family of the same? If the answer is in the negative, then your family members will also inherit a lot of trouble and hassle while claiming this wealth you have left behind for them. So, if you really want to pass on your estate in a smooth and hassle-free manner, then you should prepare an asset and liability register of your estate without any delay.
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Webinar on Wills and Inheritance planning.
Webinar conducted by Finnovate
Webinar on Will, Trust and Estate Planning.
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कौन कौन से Businesses चलेंगे COVID-19 Pandemic के बाद
A Chinese peoverb says every crises is an opportunity. As COVID-19 continues to shift the business and commerce landscapes in and around the world, some businesses have been fortunate to see enormous jumps in demand. Many of these businesses, which mostly center around technology and recreation, will not simply be a flash in the pan and will continue to attract many customers after the pandemic in part to changing consumer behavior.
Here are 8 business types that will be in demand even after the threat of COVID-19 fully subsides.
Shailendra Dubey
Partner; PlanMyEstate Advisors LLP
Will
Estate planning: Wills & Nominations - Podcast
Digital Assets - How to Bequeath
Power of Attorney
Will
Acts and Amendments
Estate Planning
Nomination
FAQs in Will Writing
The Gifting Dilemma
By Shailendra Dubey
Partner, Planmyestate Advisors LLP
Tribunal cancels property gift deed as son fails to look after ailing mother
