What you should know about estate planning and the transition of assets

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Insurance: Taking a comprehensive life insurance cover is one of the easiest ways to ensure that the family-members are well-covered. In case, the family loses its main source of income due to the income earner’s sudden demise, an insurance cover can take care of the family’s day-to-day expenses and other financial goals. Further, the Married Women’s Property Act (MWP Act) can be used effectively to protect the estate of a married woman, received through the insurance cover.

It is a legal protection given to a married woman’s assets against creditors and other relatives. It secures the married woman’s assets and assures financial stability. Nomination: You must check whether all your investments—real estate and financial assets—has a nominee.

At the same time, the nominee should also be aware that he or she is a nominee. Often, there are cases where the nominee is aware only after the person’s demise. Nominations should be made across assets— banks savings account, current account, fixed deposits, bank lockers, post office schemes, bonds, demat holdings, stocks, mutual funds, physical shares (if one is holding), residential or commercial plots, flats, gold, silver, paintings, artefacts and any other assets.

Will: A will or testament is an important tool, which is used by the testator (who makes the will), to define the manner in which he or she wants the assets to be distributed after his or her demise. It is a legal document and thus, has an important role in estate planning. A will shows the basic intention of the testator regarding the persons he or she wants the assets distributed to after his or her lifetime.