NEED FOR ESTATE PLANNING   

An Estate is the total property real and personal owned by an individual. Real property is  House, Farm etc. and personal property is cars, shares, furniture, gold & jewellery, FD etc.

Estate includes all assets as well as liabilities belonging to a person at the time of death or disability.

Estate planning is a process by which an individual designs a strategy and executes a will, trust agreement, or other documents distribute one’s assets to his/her heirs. It covers financial, legal and tax aspects of wealth in the interest of legal heirs or intended beneficiaries.

BENEFITS:

1. Smooth transfer of Assets to Beneficiaries as per Individual’s wish.
2. Least Tax burden on the Beneficiaries and will ensure minimum tax deduction on such transfer of assets.
3. It can protect inherited assets from lawsuits, divorce, creditors and other mismanagement.
4. It allows one’s estate to pass to one’s beneficiaries without costly and lengthy process of Probate.
5. It will give peace of mind knowing that your near and dear ones are protected and provide for.
6. It will give one freedom to decide whom he/she wants to give, when and how much and what way.
7. It will discourage certain types of conduct.
8. In case disabled due to accident or sickness, it will ensure smooth functioning of asset management within the intended beneficiaries.

NEED:
This depends on your financial situation. For many people who have money in superannuation and a reasonable level of assets, it is certainly worth considering. Most Financial Planner who works in this area should be able to explain to you how they can maximize the amount of your assets that are passed on after your death. They should be able to provide you with the costs and benefits of a particular estate plan which will suit you most.
         

Estate Planning could be useful if you say ‘yes’ any of the following:

                 If you want to pass on a family business;
                 If you want flexibility in distributing your assets;
                 If you have property which may be caught by capital gains tax;
                 If you have a superannuation payout;
                 If you have life insurance;
                 If there are family debts; 
                 If you've got capital losses; and
                 If you want to make a gift to a charity;