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Dying intestate or without a Will can leave various impediments for your family, as there is no guideline for the family to refer to, in order to handle and dispose the Assets.
Dying intestate or without a Will can leave various impediments for your family since there is no guideline for the family to refer to, to handle and dispose of the assets.
Estate Planning can be understood as the process of planning for proper administration and settling of the property and assets after the original owner of those properties passes away. Therefore, it majorly involves planning for the transfer of a deceased person’s estate and includes cash, clothes, jewellery, cars, houses, land, retirement, savings accounts and immovable property too.
Dying intestate or without a Will can leave various impediments for your family since there is no guideline for the family to refer to, to handle and dispose of the assets. A whole lot of disputes may surface between the family members and can even devastate the peace and also the process of settling the estate, in absence of the Will.
People pass away all of a sudden even at a young age, more often without planning their estate. The reasons/myths for this can be identified as under:
In this fast-paced and materialistic world where life is very uncertain and life expectancy cannot be ascertained, the following are among the reasons why there is a need for estate planning:
(1) Caring for your loved ones: If the children of the owner are minors, estate planning generally helps appoint guardians for the minor children. It also ensures that all the assets are transferred properly and managed properly. This will also reduce the possibility of conflict in the family with other extended family members. Therefore, estate planning in every way secures the future of loved ones.
(2) Direction for family and Doctors to make healthcare decisions: If there is a properly documented assistance in the form of a Will, and thereafter, if the person suffers a medical setback, this document can act as a guide to guide the family and the doctors to make healthcare decisions. It guides when to use life-sustaining procedures or when to stop using the same to resuscitate the person.
(3) It protects your family from Creditors to some extent: In case you have impending creditor problems or work in setup, which could be subject to litigation at any point, estate planning can help to isolate your assets from future creditors. This process involves giving up some control over the assets in favour of your family members while maintaining the right to use the assets when required.
(4) Prevents further family disputes in future: If there is a properly documented estate plan for the deceased, it prevents the family members from getting entangled in any bitter court disputes, over the assets of the deceased.
The following ways can be used for estate planning:
(1) Make a Will: A will as we all understand is the legal instrument that permits a testator, to make decisions on how his estate will be managed and distributed after his death. It gives a proper guideline to dispose of the assets of the deceased after his death, in a properly documented form.
(2) Formation of a Trust: - A Trust helps in effective management and distribution of the assets, as there is an appended obligation to the ownership of the property. It mainly arises out of a Trust reposed or lounged for the benefit of another or another and the owner.
(3) By Nomination: If you appoint a nominee for all your assets, the said nominee can take over and look after all the assets till the time the Succession Court can settle disputes, in the absence of the Will.