Estate Planning
Definition
•The term estate planning refers to the preparation
of tasks that serve to manage an individual's
financial situation in the event of their
incapacitation or death. The planning includes the
bequest of assets to heirs and the settlement
of estate taxes and debts, along with other
considerations like the guardianship of minors
and pets.
•Hindu Succession Act, 1956 for Hindu, Buddhist, Jain, Sikh
•Indian Succession Act 1925 for Christian, Jews, Parsis
•Mohammadan Personal Law for Muslims
The Estate Planning Process
• The most basic step in estate planning involves writing a will.
Other major estate planning tasks include the following:
• Limiting estate taxes by setting up trust accounts in the names
of beneficiaries
• Establishing a guardian for living dependents
• Naming an executor of the estate to oversee the terms of the
will
• Creating or updating beneficiaries on plans such as life
insurance
• Setting up a durable power of attorney (POA) to direct other
assets and investments
•Will – Legal Declaration
•Testator – Person who make the will
•Legatee – beneficiary of the will
•Executor – administrator of the will
•Trust – Entrusting property to an organisation with
confidence accepted by the trustees to work in the
benefit of beneficiaries.
•Trustee – who accepts the legal title
•Beneficiary – for whom trust is created
•Trust Deed – Legal document
