Presentation on Estate Planning in India

1. Webinar by
Neeraj Chauhan, CFP
Sunday, 8th may 2016
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2. How to make sure your assets pass to
your loved ones exactly as you want—
with the fewest possible hassles,
taxes, and delays
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3. Unclaimed Money
• EPF 26,496 Cr
• PPF 22,000 Cr
• Insurance Co’s 5,849 Cr
• Bank Accounts 5,124 Cr
• Corporate 3,454 Cr
• Post office 1,916 Cr
• Bonds 1,100 Cr
• MF 453 Cr
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5. Nominee is a trustee, not
the owner of the Assets.
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6. ExcepUons
• Companies Act
• Depositories Act
• SocieUes Act
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8. Hindu Succession Act,1956
The Repealing and Amending Act, 2015
Indian Succession Act, 1925
The Muslim Personal Law (Shariat) ApplicaUon act,
1937
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10. Class1
Heir
• Widow
• Son / Daughter
• Mother
• Son / Daughter / Widow of a
predeceased son
• Son/ Daughter / Widow of a
predeceased son of a
predeceased son
• Daughter / Son of a
predeceased daughter
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11. Class2
• Father
• (1) Son's daughter's son, (2) son's
daughter's daughter, (3) brother, (4) sister
• (1) Daughter's son's son, (2) daughter's
son's daughter, (3) daughter' daughter's
son, (4) daughter's daughter's daughter.
• (1) Brother's son, (2) sister's son, (3)
brother's daughter, (4) sister's daughter.
• Father's father; father's mother.
• Father's widow; brother's widow.
• Father's brother; father's sister.
• Mother's father; mother's mother
• Mother's brother; mother's sister.
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12. Agnates
• Father Side RelaUves like
father’s brother’s son,
son’s son, son’s son father,
father’s father, father’s
mother, father’s father’s
father & mother, son’s
daughter, son’s son’s
daughter………. etc are
agnates.
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13. Cognates
• Mother’s side relaUves like
sister’s sons & daughters;
daughter’s sons & daughters;
mother’s mother & father;
father’s mother’s father &
mother; mother’s father’s
son & daughter………..etc are
all cognates.
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14. No
Heirs
• EnUre
property
lapses to the
government
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15. Female
Hindus
• firstly, upon the sons and daughters
(including the children of any
predeceased son or daughter) and
the husband;
• secondly upon the heirs of the
husband;
• thirdly, upon the mother and father;
• fourthly, upon the heirs of the
father; and;
• lastly, upon the heirs of the mother
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16. Succession
cerUficate
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17. Children born of live-in
relaUonships are legiUmate,
Supreme Court says
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18. Any person who commits murder
is disqualified from receiving any
form of inheritance from vicUm
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19. If a relaUve converts from
Hinduism, he or she is sUll eligible
for inheritance.
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20. Daughters whose fathers died
intestate before amendment in
Hindu Succession Act have no
right to Inheritance
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22. Only self acquired property can be
bequeathed
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23. Muslim male cannot Will away
more than 1/3rd of the estate.
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24. FuncUonaries in a Will
• Testator
• Executor
• Beneficiary
• Witness
• Guardian (If beneficiary is Minor)
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25. EssenUal Clauses
MenUon your name, age and
address at the beginning of the
Will
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26. EssenUal Clauses
State that you are in sound good
health and mind
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27. EssenUal Clauses
MenUon that the current Will is
your last Will and has been made
with free, calm mind & without any
pressure
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28. EssenUal Clauses
Appoint an executor of your Will
and don’t forget to seek his or her
permission before appoinUng.
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29. EssenUal Clauses
Give complete and clear
descripUons for all the assets being
bequeathed
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30. EssenUal Clauses
Sign on all pages of the Will
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31. AddiUonal Care
If you have made any Will in the
past, menUon that the latest Will
supersedes the old ones
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32. AddiUonal Care
If you are giving something to a
person outside the natural order,
menUon the reason.
It will reduce the chance of
disputes
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33. AddiUonal Care
If the Will is excluding some heirs
from inheritance then menUon the
reason for such exclusion to avoid
a speculaUve challenge
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34. AddiUonal Care
Don’t alter the text of your Will by
striking out or overwriUng, write a
fresh Will or an addendum for
minor changes.
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35. AddiUonal Care
Your thumb impression will
support the authenUcity of your
Will
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36. AddiUonal Care
The language of your will should be
simple, clear and unambiguous
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37. AddiUonal Care
A witness from a doctor will help
to prove good health and stable
mind
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38. AddiUonal Care
Name and complete address of
witness should be menUoned
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39. AddiUonal Care
Try and do videography of your
Will
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40. AddiUonal Care
Avoid making beneficiary as an
executor of your Will
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41. AddiUonal Care
Ideally executor should be younger
than testator and from local area.
There can be some remuneraUon
for Executor
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42. AddiUonal Care
Always Appoint alternaUve
Executor to avoid leier of
administraUon
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43. AddiUonal Care
Empower executor to pay bills and
debt
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44. A Will wriien with hidden
objecUves is considered Void
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45. A Will can be wriien in any
scheduled language
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46. Will can be wriien in a simple non-
technical language
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47. Will can be on a plain paper or
stamp paper
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48. Will may or may not be registered
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49. A Will can be revoked anyUme by
the testator during his life Ume
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50. Bequests can be made with
aiached liabiliUes
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51. Testator in Will can also menUon
%X can go to his wife and Y% to
Son
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52. Will may menUon how assets
procured in future be distributed
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53. Specific legacies and bequests can
be made through Will
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54. Bequests can be made to
unascertained party
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55. Keep your will in safe custody
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58. Revocable
Living Trust
Or
Family Trust
Irrevocable
Specific/ DiscreUonary
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59. Disclaimer
We are CerUfied Financial Planner and not the
legal advisors on Will & Estate Planning.
The whole presentaUon is created with an
objecUve to sensiUze people about importance
of Estate planning.
Please consult your legal advisor or lawyer
before acUng on any advice given here.
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60. Thanks
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