Thursday, October 15, 2015

A must list, before I die...

We wish all our reader's a healthy and peaceful long life. But we all know we have to die one day.

Have you ever thought why it is only me, who knows about all the investments, deposits, assets and liabilities. May be for convenience we would be accessing bank accounts and password of entire family. But is it not necessary to update atleast one of the family member about it.

Recently a report was published in the news paper that almost 64000 Crore is lying unclaimed in bank, post office, insurance company and EPFO for more then 10 years.

It suggests that there were people who invested this amount and have not passed on details to their heirs, who can claim it.

It take lot of efforts and hard work to earn, save and create wealth. Being Indian parents we always wish that we should pass on our legacy to next generation. But only wish doesn't work.It needs to be planned.

In today's fast moving technological world everything is either stored on our laptop,computer or mobile and have been saved with the password which only we know.

There was a recent case in which a client had updated his spouse about all the investments and name of the files stored in the computer. But when he died and her wife tried to access the details she was surprised to note that computer was locked with an password, which he didn't shared.

Remember in case of sudden death. Family has to bear 2 kind of losses one is emotional and other is financial loss. No one can fill the emotional gap only time can heal it up. But together with it if they have to go through financial problem then it is unbearable, that too when enough resources were planned.

Just assume that YUM DOOT has come to your dream and given you notice of 1 day. I think first thing you would do is provide with all your financial details to your family member.

For your ease trying to put down list of things you must prepare, update and give it to your family members :

  • Will : Prepare a will. It is a simple statement mentioning how you wish your wealth should be distributed to your heirs. It is perceived that it requires lot of legal and technical hassles. But let me tell you that you may create it on a simple piece of paper which needs to be signed by 2 witnesses.

  • Bank account details with login and passwords.

  • E-mail account login and password, only in case there is no confidential details which you have even hided from your family and don't want them to know even after death

  • Laptop and smart phone login/password

  • Debit and credit card pin

  • Nominee : Ensure all you investments have a nominee. Legally nominee is not the owner of the asset but just an authority to receive proceeds. If your one son as nominee and you die without making a will your another son,daughter or even your cousin can challenge it in court.  

  • Details of Saving Bank Account,Locker, Fixed Deposit, Demat, PF, EPF, Insurance (Life and non Life).

  • Details of all your investment like Mutual Fund, Stocks,Physical Gold, Silver, Real Estate.

  • List of outstanding loans.

  • Money given or taken from friends and relatives.

Remember only providing the details will not solve the purpose it needs to be updated at regular interval. Your birth date or anniversay date can be a good reminder to update the list.

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