Legacy & Inheritance Planning

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What is Legacy Planning?

Legacy planning involves creating a comprehensive strategy to transfer an individual’s assets, values, and beliefs to their beneficiaries or heirs after they pass away. This process aims to ensure that the distribution of assets aligns with the individual’s goals and values.

To create a legacy plan, various tasks must be undertaken. These include drafting a will or trust, naming beneficiaries for life insurance policies and retirement accounts, and establishing a plan for distributing financial assets, such as family heirlooms or personal possessions.

A well-designed legacy plan can help minimize conflicts and disputes among beneficiaries, reduce taxes and other expenses, and ensure that assets are distributed according to the individual’s wishes.

What is Inheritance Planning?

Inheritance planning encompasses the preparation for the transfer of an individual’s assets to their chosen beneficiaries upon their demise.

The primary aim of inheritance planning is to facilitate the smooth, efficient, and cost-effective transfer of an individual’s assets to their intended beneficiaries while also minimizing tax obligations and maximizing the overall value of the estate.

Inheritance planning entails the utilization of various legal instruments and tactics, including wills, trusts, beneficiary designations, joint ownership and titling of assets, and powers of attorney.

These strategies can effectively circumvent probate, a cumbersome and costly legal process that may occur if an individual passes away without a valid will or trust in place.

Why Legacy & Inheritance Planning?

By contemplating your legacy and creating a plan, you are able to shape the destiny of your hard-earned wealth so that it provides all the benefits you want your heirs to enjoy and gives you peace of mind.

1. Equitable wealth distribution

2. Redesignate beneficiaries as necessary

3. Minimize taxes

4. Revisit your estate plan

 

Why us?

  • Keep track of your beneficiaries and formulate plans for your future events favoring your needs and requirements.
  • Eliminate uncertainty and make sure that your beneficiaries pass in the manner you want them.
  • Fincart enroutes the appropriate financial strategy that will spare your beneficiaries from the large tax burdens.
  • Ascertain the true value of all parts of your estate and minimise the impact of any taxes on it.
  • A WILL writing service ensures that all your assets are properly recorded. You can clearly decide how you wish to distribute them and by when. We suggest these basic services to all our clients. However, if the size of the estate or assets is very large then we would recommend creating a trust.

Role of Financial/ Investment Advisor in Legacy and Inheritance Planning

Financial or investment advisors play a crucial role in legacy and inheritance planning by guiding clients through the process of identifying their financial goals, selecting suitable investment strategies, and choosing appropriate legal tools to transfer assets to beneficiaries smoothly.

  • Financial/Investment advisors help clients identify their financial goals and objectives for legacy and inheritance planning.
  • They provide guidance on investment strategies and asset allocation to maximize the value of the estate.
  • Financial advisors assist in selecting appropriate legal tools such as trusts and insurance policies to achieve estate planning objectives.
  • They collaborate with estate planning attorneys and tax professionals to ensure the plan aligns with the client's wishes and minimizes tax liabilities.
  • Financial advisors regularly review and update the legacy plan to adapt to changing circumstances and goals.

Fincart's Legacy And Inheritance Process

  • WILL writing is a simple exercise that we strongly recommend for everyone. This is customized to each individual's requirements.
  • Managing a trust comes with an annual cost, hence it is advisable for those who own assets that are large and needs to be distributed to many multiple stakeholders.

faq's

Simply put, legacy planning or estate planning ensures that your assets/investments are all recorded and documented in one place. They are seemlessly transferred to your loved ones, in the right manner and proportion the way you would prefer.

  • If your aggregate amount exceeds Rs. 2 lakhs on yourself or for another person for their travel to a foreign country. 
  • If the total amount you have deposited exceeds Rs. 1 crore in either one or multiple accounts. 
  • If somehow you end up spending 1 lakh on electricity bills in either one go or through multiple bases during the entire financial year.

By contemplating your legacy and creating a plan, you are able to shape the destiny of your hard-earned wealth so that it provides all the benefits you want your heirs to enjoy and gives you peace of mind: 

*Plan how and when your assets will be distributed so that the wealth transfer process does not occur according to your wishes.

*Redesignate beneficiaries as necessary

*Minimize taxes

*Provide guardianship and care for children and family members, young and old, with special needs

*Make sure your family members are financially secure in the event of your death or illness

*The execution of your wishes will be carried out on your behalf if you are not able to do so

*Peaceful succession & disposition of the estate

Legacy planning can be done in multiple ways; drawing a WILL is the most simplest form. A lot of businessmen having multiple stakeholders, family members and complex shareholding structures can do the same by forming Trust.

  • Calculate your worth by creating a list of all of your financial assets, personal property, document liabilities, etc.
  • Ask a financial planner to refer you to a qualified estate planning attorney
  • Determine (or update) your beneficiaries
  • Revisit your estate plan regularly

Legacy planning is beneficial for individuals of all ages and stages of life who want to ensure that their values, beliefs, and financial assets are passed on to future generations in the exact way they want. It is particularly important for those with significant assets, complex family dynamics, or specific philanthropic goals.

Having a well-designed legacy plan offers several advantages, including: 1) Ensuring financial stability for future generations, 2) Minimizing tax obligations for heirs, and 3) Facilitating charitable contributions and giving back to the community.

Family legacy planning involves the intentional and strategic process of preserving and passing on a family’s values, traditions, stories, and wealth to future generations.

Legacy planning focuses on leaving a lasting impact beyond financial assets, such as passing on values, beliefs, and memories to future generations. Estate planning primarily focuses on transferring financial assets to designated beneficiaries or heirs.