Friday First Cut – Ep 08: Estate Planning is not just Will creation

https://www.youtube.com/watch?v=dqupS–Kwqc 

Important points to consider while writing a Will

Why do I have to prepare the Will? Am I not too young to prepare the Will? 

We all think the same but is it really true? We can’t leave our loved ones without any security or protection when we are not there with them. 

Will preparation is a meticulous task but has to be drafted considering the important aspects. We have come up with few pointer heads to help you with Will preparation.

• Trust 

Succession Planning which determines which asset goes to whom post-death of the asset holder. It is possible to do this by creating Testamentary Trusts which is especially useful where the person has minor kids or successors with a disability to take care of. 

• Life insurance 

Term Insurance is the best option to loom at while preparing a Will. Term insurance is beneficial for Will planning since it protects your loved ones from sudden income loss. Also, the proceeds are tax-free in the hands of the beneficiary.

• Nomination 

A nomination is a vital process in bank accounts, fixed deposits, insurance policies etc. The legal heirs would need to know what assets they are entitled to. It is easy to reckon and assign if Will consists of nomination for each asset. 

• Power of Attorney 

Power of Attorney is given where the deceased person has not nominated or transferred an asset to a legal heir or successor. The person with designated Power of Authority can sign the legal documents like the return of income or bank account ownership etc. 

These are just a few pointers to go ahead with. However, keep tuned in to have some more insights on personal finance planning.