Estate Planning: The majority of elderly people don’t give estate planning much thought. They put in years of hard work to accumulate wealth, but they put off making sure the intended beneficiaries can enjoy it. Nominations and the common argument among seniors that they are not wealthy enough to need a will are some of the most popular justifications for delaying estate planning.
Importance of Estate Planning
You must have an estate plan in place if you own property and wish to leave it to a close relative. This could be anything, including cash in your bank account, your current residence, jewellery, or artefacts, regardless of how insignificant they may appear to you. When you have multiple children, their spouses, and grandchildren, this becomes extremely important.
Compile a Comprehensive List
Make a list of your assets and liabilities when drafting an estate plan. The distribution of your assets and personal belongings among your spouse, children, and other eligible heirs must be your first priority. For this reason, the first step is to make a list of all of your available assets, both material and immaterial. If there are any outstanding debts, they need to be disclosed. Give your family members the name and contact information of the relationship manager at the bank who can help them with the demise claim process.
General Power of Attorney (POA)
The most fundamental and important estate planning document is a will. It makes it possible to appropriately plan how wealth is distributed to loved ones. Senior citizens should also see to it that a general POA is established. People who are unable to complete the transaction on their own for a variety of reasons—disease, advanced age, living abroad, etc.—create PoAs. These transactions might have to do with real estate, banking, taxes, court cases, financial investments, etc.
Revocable Living Trust
Keeping their assets in a trust is one way for senior citizens to safeguard them. One can list their beneficiaries and the percentage of assets each will receive upon his death after listing their assets.
Spousal Priority
Seniors who create a will should, if at all possible, leave their assets to their spouse first and to their children only in the event that the spouse predeceases them.
Understanding the Significance of a Living Will
A Living Will is a legal document that gives people authority over their care choices in the event that they are unable to communicate for themselves. It actually goes beyond the confines of illness, allowing individuals to communicate their preferences for interventions and treatments that will prolong their lives. It’s a lifeline for people going through difficult times, not just a legal procedure. A Will also allows people to specify their desires regarding organ donation. A will guarantees that the benefactors will honour the donor’s wishes and gives the donation legal force.
Ensuring the Well-Being of Dependent Minors
If an elderly person has a dependent minor, he can designate in his Will the minor’s legal guardian. If the guardian isn’t named in a will, the court may have to decide who will look after the child.
Rising Trend of Charitable Bequests
Within the Indian senior community, there is a subtle but significant shift occurring. In order to make a lasting contribution to society, more elderly people are now making charitable bequests.
Consolidation Benefits
It is an essential component of senior estate planning. If you have seven bank accounts, for example, cut that number down to two and think about keeping those accounts open. You should also make sure the bank branches are closer to your home so that you can commute to them more easily.
Establishing a Will Review Routine
It is advisable that you establish a routine for reviewing and updating the Will. Adjustments may be required as a result of births, marriages, divorces, and the purchase of assets.
Professional Will Drafting and Registration
To have your will expertly drafted, you can hire a lawyer. Registering the Will can help to avoid future questions from heirs and adds an extra degree of formality. The price to hire a lawyer to draught your will depends on the amount of work involved. Between Rs 10,000 and Rs 1.5 lakh are the ranges. A competent, respectable attorney typically bills about Rs 50,000. Each Will requires an additional Rs 5,000 for registration.
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