Inheriting Wealth or Mess

Investoshashtra !!!📜📜📜
ईन्वेस्टोशाष्त्र !!!📜📜📜

When we born we were like tender flower.But in zest of living life unknowingly we accumulate so much of trash (for others) which becomes difficult to manage for next generation.

Recently, I come across couple of cases where children's have settled down abroad and parents are no more. 

Parents had bank account with multiple banks, investments in all possible instruments like LIC, Bank FD, Postal Schemes,MF,Shares, SCSS etc etc.. and cherry on the top had several real estate.

Misery is now kids themselves doesn't know about what they have inherited whether it is a wealth or mess.

More than grief of losing parents they are worried about sorting out this mess in little time they have.

In Gujarat this is the story of most of the  families and will grow bigger as migration of next generation is increasing more and more.

So if you are one of such parents try consolidating holdings and limit it to financial assets as you grow older, which will ease transmission. 

Most important - Create will. If you fail to do so you become a reason for dispute amongst your own children's who had harmonious relationship when you were alive.

Try and *inherit memories, values together with wealth, but not the mess.*

Secrecy and Data sharing

We share data from whom it should not be and never share it with the one we should

This week we witnessed data leak issue on Facebook and also how serious it's impact could be on privacy of an individual and a country.

We keep sharing most of our secret data on social networking site without even knowing that it has been compromised.

Contrast to that we hardly share our financial data or details with the person who is going to need it after us i.e. our family.

One of my investor who was on his 40's passed away 2 years back. He used to share all Investments and other data with his wife which was stored in a laptop.

But tragic irony is just few days before his cardiac arrest, he changed password of laptop.

Think of the situation of the family, which is already struggling emotionally due to his sudden demise and doesn't know how they are placed financially.

So this weekend sit with your family *even if they don't want to* and share all your plans and Investments.

Don't forget to share contact details of your financial planner who can act as an financial guardian to your family in such adverse situation

It's your Life - Make It LARGE

Every individual's what he is today is result of small things which he/she did in past, same is very well narrated by Superstar King Khan in one of the recent commercial : I Quote -

"Large kab banta hain, Woh pehla break large lagta tha,

Woh pehla role, Woh pehli Gaadi,

Pehli Girlfriend?,

Bachpan ki galiya large lagti thi, theatre ka stage,

uh a - us waqt to small screen bhi mere liye large thi,

20-50 log taaliya mar dete, large lagta tha,

Lekin aaj wohi sab, CHOTA lagta hain,

Jo haanth lag jaye woh kya large,

Lekin LARGE banta hain UNHI CHOTI cheezo se,

Small Milate Jao large banate Jao,

Its your Life MAKE IT LARGE.

Unquote-

If we go through our past we will find above lines are very relevant for each one of us, what ever we are today is the result of the small small right or wrong things we did in past.

Each one of us can narrate a similar experience of their past, it looks like a dream that how by TIME this small decisions becomes so big for us. Every one of us must be at higher level from where they started. The people who are at start of their career will be at much higher position then at which they are today, if they continue giving there efforts sincerely.

Similar is the case of SIP (Systematic Investment Plan) - It is small small amount which you contribute regularly on monthly basis for years and without our knowing by time it grows much bigger then our expectation.

As an advisor I always advise my clients that every individual who has an asset need to write a will or every individual who is earning and having dependents needs to have a life insurance.

Similarly, I feel each and every individual who is not blessed by legacy of wealth needs to have an SIP. It will help them to achieve there goals and dreams by just contributing small amount over years effortlessly. So whether you wish to invest for your child's marriage or education, for a house or retirement or for a foreign tour or charity what you need is an SIP and time by your side.

Many a times investor feels SIP means equity/shares but they can do it in a fixed income or Gold fund depending on their risk profile and needs.

So if you have not started one yet, start it today aur aap bhi "Small milate jao or LARGE banate jao - It's your life, make it LARGE".

Save your wealth from going into wrong hands...

Recently I came across a study that shows 80% of the pending cases in High Court are related to property. Todays' newspaper shows banks are sitting on a pile of FD's amount to Rs.3600.00 Crore which are unclaimed for more then 10 years after maturity.

In most of the cases reason might be that the FD holder might have died and his successor doesn't know about it or proper nominations were not done.

Why is it so that the same brother and sister who used to live as family suddenly becomes enemy after their parents death, it doesn't end there but is followed by unending process of court cases/litigation and high expenses.

We can stop this from happening in our family or friends by just preparing a small one or two page statement called as will or Estate Plan. 

Contrary to perception, it is not necessary to write will on stamp paper or even get it registered. You can write a will on plain paper and it will be as legally valid as one prepared by a lawyer.

It's a myth that only super rich need to write wills. The fact is that everyone who owns a asset in any form should write a will so that his heirs do not face problems in accessing what is rightfully theirs and avoid disputes among them.The assets can be anything - Property, Jewellery, Painting, Cash, Bank FD's, Shares, Mutual Funds ,Insurance Policies, etc...

For most people, will making is do it yourself exercise. the only requirement is that the will should be legible. However, if your assets and ownership are a little complicated , you may seek help of a legal professional to draft the will.

Essential clauses of Will

1. Name - The name and description like age, religion etc...of person making the will.
2. Revocation of earlier wills : A declaration that the present will is his last will and he revokes all other earlier wills.
3. Appointment of executors : A executor is a person who has been confided with the job of execution of will.
4. Mention that you are not under any influence or duress while making the will. The witness must also attest the same at bottom.
5. Give clear details of Assets and how it should be distributed.
6. Residue Clause - It helps to include any other asset you may have left out inadvertently while enumeration your net wealth.
7. Mention full name of beneficiaries clearly with address.

Points you should know :

•  Preparation of will does not require any specific language
• Will need not be stamped
• Registration of will is not mandatory
• Will can be revoked by testator (Person making will) anytime during his lifetime.
• It is important to note that the attesting witnesses need not know the content of the will
• Review your will at regular intervals for the changes in your assets  or due to change in circumstances (Like beneficiary or executor mentioned in will dies).]

Consult your financial planner as Estate planning is an integral part of Financial planning.

By sparing five minutes in a year you can avoid lot of litigation within your family member and also save them from lot of expenses and mental agony.