Transferring your wealth, the right way
February 1, 2022The world is moving ahead in a fast pace. People are running after money both for their day-to-day life and as assets and investments. But, is it sufficient to just accumulate wealth? Your wealth, be it money, land, car, gold, mutual funds and shares everything has to be passed on to the next generation in a smooth manner. This is where succession planning comes into prominence.
Succession Planning can be described as the smooth transfer of one’s assets and investments from one generation to the next. The wealth can be distributed or passed on to a certain individual or individuals of the particular person’s choice. In a family comprising of more than one child, disputes may tend to arise in the absence of a proper will, eventually leading to court battles in many cases. Many a times, an individual seldom thinks of what happens after his/her demise. They live under the pretext that the next generation will handle the situation maturely among themselves which is not always the case. Some of the most popular beliefs among people are that such a planning needs to be done only by the affluent and the thought itself need to be given a serious note during the old age and that the succession planning needs to be done only after one’s retirement. But, give a second thought on such myths! Affluent or not; money and assets are hard earned and this should be passed on wisely to the rightful heirs. Also, with the increasingly unstable lifestyle; life is unpredictable and hence the earlier the succession planning, the better it will be..
So how do we go ahead with Succession Planning? It is always better to table a discussion with a trusted wealth manger and lawyer and set the process straight. There are laws in Indian Legal System that applies to succession planning which they can help throw light on. There are many ways by which this can be done – Wills, Power of Attorneys, Trusts, Life Insurance, Nominations, Property Transfer etc. The whole family i.e.; wife and children should be involved as the awareness can mitigate most of the confusion surrounding the wills or succession in case of death. It is always advisable to have a will written out to specifically point out how the wealth is going to be disbursed; and this can give a clear understanding of the financial status to the beneficiaries. India as a country; has a lot of myths and hesitation related to succession planning especially when it comes to writing wills. But on the whole with the ever-changing life style and family conditions, it is always a good idea to have your assets and investments planned to be handed over to the rightful person.