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Estate Planning

Estate Planning

Estate planning is commonly associated with death. But when that event will strike the things are uncertain. The Life of an individual is unpredictable. There are various reasons for planning an estate, for example-Protecting family’s wealth, Security for a surviving spouse and children, funding the education of children's or grandchildren’s, or leaving the legacy behind to a charitable cause.

Package inclusions:
  • Enterslice helps in providing advisory in making a better plan of action.
  • Helps in preparing the documentation required in Estate planning.
  • Helps the client and his family in taking a prudent step to reduce the tax liabilities.
  • Proper assessment and review of the plan to access the progress of accomplishing the long-term plans.

Estate Planning

What is Estate planning?

Estate planning is planning that directs how an individual’s assets will be protected, managed, and dispersed after death. Estate planning takes into consideration the administration of an individual’s assets and financial liabilities if they become disabled.

Estate planning refers to hand overring the assets from one generation to another generation. Assets that could make up an individual’s estate include houses, cars, stocks, artwork, life insurance, pensions, and debt. It is misapprehensive that estate planning is only for high net worth individuals. Estate planning can be started at any point in time.

The Need for Estate planning

Estate planning is necessary for every individual, disregarding whether their asset is high-value or not. Estate planning is essential for those who have a family and loved ones, as in that case their financial security and comfort are a priority.

Since estate planning is not confined to asset distribution alone, the need is to set down proper instructions and authorize somebody who can take the decision making on the behalf of the person related to healthcare, Financial matters, and personal care decisions. The motive behind the estate planning is that you can enjoy the best possible life even if you are unable to make these decisions on your own.

Estate planning is done depending upon the high net worth or low net worth of the individual. For low net worth estates of the individual, the process can be used for authorized beneficiaries, distribution of assets, and Debt repayment planning. On the other hand, high net worth individuals with substantial estates may be able to gain from asset conservation, tax minimization, and other estate planning services too.

The Key consideration for Estate Planning

The process of estate planning takes into consideration the needs and goals of the clients which vary from individual to individual. The main motive behind the estate planning process is to ensure that there is no misinterpretation related to estate distribution and legacy management. The estate planning process maximizes your estate’s value through effective tax planning and other financial tools.

Estate planning involves the anticipation of the future needs of the individuals and their loved ones. Below mentioned are the key points to consider:

  • Management of property

Estate planning involves who will manage the property and how the property will be managed. It is done by taking into consideration the individual’s point of view. Listing the assets and its valuation-It is important to list all the assets you own and value the same. Further, it is also required to list all the beneficiaries to whom you want to leave these assets.

  • Designating the concerned person

While the person is alive, who will provide personal care and manage healthcare decisions is an important part of the estate planning process. Who will take care of the minor children of the family during the lifetime? The Decision regarding the guardianship is also required to be taken.

  • Funeral Arrangements

How the individual wants the funeral to be arranged, whether a person should be cremated or buried. All the key points should be taken into consideration.

  • Distribution of assets

Considering the situations where the property should be distributed before the demise of the individual and how to execute this process. Who will receive the property after the individual’s death, and how these assets will be distributed amongst multiple beneficiaries?

What Does Estate planning include and how it is calculated?

The estate of an individual includes all the assets, title, or ownership of the assets, i.e. whether in the name of the individual or jointly owned with a spouse, parent, business partner, or other individuals.

The assets of the individual that are considered as a part of your estate:

  • Financial Accounts

Individual’s savings account in a bank, retirement accounts, stocks and bonds, life insurance returns, etc.

  • Money Owed to the individual

Tax rebate, Patrimony funds, outstanding loans the debtors, etc.

  • Investments

Home or commercial property, besides any other land or property you own, etc.

  • Other Assets

Vehicles, furniture, jewelry, art, etc.

  • The fair market value of the above

mentioned assets is calculated after deducting the debts of the individual owe like mortgages and loans, added up to estimate the value of the estate. The tax will be charged after the death is decided based on the value of the estate. Further, it is also considered that whether capital gains taxes will have to be paid by the beneficiaries or not.

Possible taxes are considered while doing estate planning and ensuring that there are enough funds available to cover them.

Difference between will planning and estate planning?

In general, there is no difference between the will planning and estate planning same. The terms are used interchangeably, but practically they serve very different processes. Both Will’s planning and estate planning guides the relatives with instructions that how the individual’s property should be handled after his death. However, estate planning goes even further to layout the individual’s asset regarding the health, finances, and more, even when the person is alive. An estate planning expert helps in determining what type of planning an individual needs and assist them by creating all necessary documents for a comprehensive estate plan

What is Will Planning?

Will planning is relatively a simple planning than estate planning, which involves creating a last will. The will dictate that who will take care of the children after the death of the individual in whose behalf the will has been prepared. Further, it also includes who will take over the business, who will receive the assets and the property.

The testament requires the appointment of an executor, who will be responsible for ensuring that all the instructions mentioned in the will are followed. A will helps in avoiding the family disputes over property and helps in making the legal decisions.

What is Estate Planning?

Estate Planning is an in-depth process where various types of documents are used to secure the assets after the death of the individual. Estate planning includes various key aspects as mentioned below-

  • A Living Will
  • A Financial Power of Attorney to protect the assets and keeps into consideration the financial stability of the family
  • Designations of Beneficiaries

What is forced heirship in Estate planning?

In Estate Planning, Forced Heirship is a rule of law wherein an individual is not free to direct who will become the legal heir of the estate on the death of the individual. It instinctually grants power on certain individuals to pass on a certain portion of the deceased’s estate.

These individuals are termed as Protected heirs and include the surviving spouse, children, and/or other relatives of the deceased. The Principle behind Forced Heirship is family protection. The Forced Heirship rule does not allow an individual to apart his estate without providing for his dependents

Advantages of Estate planning

Estate Planning helps the testator and its family in taking good decisions. Estate planning helps in providing a better idea of why an individual should get an estate plan. Various advantages of Estate planning are-

  • Provides better future security for your family
  • Helps in providing a better plan for the children.
  • Estate planning helps in minimizing expenses.
  • Avoid the big delay that can put a strain on the family members.
  • Securing that the property goes to the right beneficiaries
  • Finding trustees over the individual’s estate.

How Enterslice helps in Estate Planning?

Enterslice helps its client in protecting the assets and ensure that the family is taken care of. We help in making a tailormade strategy to the client’s specific financial needs and draft all of the necessary documentation. Enterslice helps its clients in determining the long term personal financial goals and plans for them accordingly.

How can Enterslice Help you?

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Frequently Asked Questions

• Certified Financial Planners

• Certified Public Accountants

• Life Insurance Professionals

• Bank Trust Officers

• Pension Consultants

• Personnel Managers

• Will

• Trust

• Probate

• Probate Avoidance

• Taxes

• Provisions for beneficiaries

• Mediation and conciliation

• Right decision maker

• Highly proficient

• Ability to comprehend the needs of the individual (Testator)

• Consistency and after-sales service.

An estate planner plays a very crucial role in estate planning. An estate planner must possess the requisite qualification and expertise to resolve the concerns of the individuals. During the meetings for estate planning, an individual ought to deeply engage with the estate planner by asking relevant questions related to his/her experience, area of practice, etc. During the conversation, it is the responsibility of the individual (testator), to disclose material information to the estate attorney. Through proper communication, an individual can get to know the estate planner is showing keen interest in the client or not.

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