Dispelling 4 Myths About Estate Planning Some individuals wrongfully think they do not have significant assets that they can pass on to the future generations and undermine the importance of managing family wealth in india. This faulty approach apart from resulting in disputes between the person’s dependants can also lead to taxation issues. One of the most important aspects of private wealth management is estate planning. Whether you live in a modest one-bhk apartment or own multiple properties in posh locations around the country, designing and implementing an estate management plan must top your list of to-do-things. Estate planning in India is still not very popular, primarily due to the many misconceptions associated with it. To help spread awareness on the topic, the post lists some myths about estate planning and corresponding facts to penetrate the shroud of mystery engulfing it. Take a look. 1. “I’m too Young for Estate Planning” Many people start thinking seriously about estate planning only when they reach a certain age or amass a certain amount of money in their bank account. Age, however, has very little correlation with estate planning. One thing is for sure; life is uncertain, which is why you must start estate planning at an early age and even with a lesser income. 2. “I Need Legal Help to Draft Documents” Though there is no denying the fact that drafting complex legal papers will require legal help, it is perfectly okay to adopt the DIY approach (especially if your family and financial situation is simple) to draft a simple will and power of attorney. Several sites offer templates to draft these documents. If you have a health condition, contact your hospital to get a health care directive.
3. “An Estate Plan Just Concerns Property and Belongings” Many people wrongly believe that the scope of an estate plan is limited to managing their property and belongings. A detailed estate plan apart from covering these aspects also deals with personal matters, such as deciding the guardian of the kids in case the person dies or becomes incapacitated and is no longer in a position to care for their child. The person in their will can also mention their preferences about the type of medical treatment they intend to receive if they are unable to express their wish themselves. 4. “Estate Planning is a one time Process” Many people wrongfully consider estate planning as a one time process and discount the importance of revisiting their estate planning strategy. Estate planning, however, is an ongoing process and changes in the person’s situation such as a death in the family, a change in their marital status (marriage or separation), birth of a child, an inheritance, or sale of business can impact their estate planning, which necessitates the need to revisiting the strategy. Conclusion Estate planning helps you and your dependents get ready to face unforeseen situations. When embarking on a journey with your wealth manager to designing your customized estate management plan, stay clear of these myths to take informed, unbiased and prudent wealth management decisions.