Estate
Planning

CREATE - PRESERVE - TRANSFER

We at Thursday Ventures LLP believe that the cycle of Wealth Management does not merely end at Wealth Creation. The wealth and legacy one has created over a period of time can be withered away if the same is not Preserved and Transferred in a planned and systematic manner to your loved ones. Estate Planning involves creating a roadmap, through various legal documents and structures, for distribution of one’s wealth post his/her demise.

Things one should know about Estate Planning!

What if you don’t have an Estate Plan?

In India Estate Planning/Succession Planning is governed by the personal laws applicable to the deceased. In case of Hindus, the Hindu Succession Act, 1956 applies. If a Hindu dies without a Will then all his wealth will be divided as per the Hindu Succession Act, 1956. This maybe something which the deceased person may not have desired.

Also, the family will have to go through the chaotic administration process of getting the wealth transferred in their name when they already are in an emotional turmoil. Further it may even lead to grimy family feuds.

What are the various modes of Estate Planning?

There are various ways in which one can create his/her Estate Plan. Some typical ways of Estate Planning include: Wills, Family Trusts, Shareholders Agreement, Family Charter etc. Depending on the wishes and aspirations of the wealth holder an efficient mode of Estate Planning can be selected. We can even have various permutations and combinations of structures for Estate Planning.

Challenges faced by families:

Cultural taboo and stigma associated with this topic,
Hesitation to discuss with the next generation,
Lack of correct guidance/advice,
Scared that it may lead to family disputes,
Fear of the unknown: Legal implications, financial implications, division and fragmentation of assets.

Step plan for creating an Estate Plan:

Discussion with the family,
Jot down the list of your assets and liabilities,
Give a thought about your wishes and aspirations,
Seek help from a subject matter expert (We would be happy to help!)
Choose the mode of Estate Planning,
Get the relevant legal documents drafted,
Periodic review of your Estate Plan.

Estate Planning