Summary: As you age, it becomes increasingly important to proactively plan for the transfer of assets and the protection of your legacy. This is true even if you’re still working, such as in mentorship roles. In this blog, we will explore why senior citizens should prioritise writing a Will and/or creating a Trust.
Estate planning is a critical aspect of financial management, particularly for senior citizens in India. As individuals age, it becomes increasingly important to proactively plan for the transfer of assets and the protection of one’s legacy. This is true even if you’re still working, such as in mentorship roles.
In this blog, we will explore why senior citizens should prioritise writing a Will and/or creating a Trust. By understanding the challenges and implications, WisGen can make informed decisions to ensure the smooth transmission of their assets and minimise potential conflicts.
The Consequences Of Failing To Plan
To understand the importance of estate planning, let’s examine the statistics surrounding asset loss on transmission in India. According to various reports and studies, a substantial amount of wealth is lost during the transfer of assets due to lack of, or inadequate, estate planning. It is estimated that assets worth up to Rs 1.5 lakh crore are lying unclaimed because families are not even aware of their existence. Moreover, a significant portion of Indian wealth is lost in the absence of a clear plan for asset distribution, primarily due to legal disputes, tax inefficiencies, and the lack of proper documentation. These losses can have a severe impact on the financial well-being of beneficiaries.
By creating a Will or establishing a Trust, WisGen can effectively protect their assets from potential loss during transmission. This ensures that their hard-earned wealth is safeguarded and preserved for their intended beneficiaries.
Inheritance Disputes in India
Inheritance disputes are unfortunately common in India, often arising from the absence of a clear estate plan. These disputes can lead to prolonged legal battles, strained family relationships, and significant financial losses. Examining the statistics on inheritance disputes provides further insight into the importance of writing a Will, and/or creating a Trust.
According to reports, Indian courts are burdened with a significant number of cases related to property disputes and inheritance issues. The quantum of disputes is as high as 76% of all court cases. Resolving such disputes can take years, draining the emotional and financial resources of the parties involved.
By having a legally valid Will or Trust in place, WisGen can minimise the likelihood of inheritance disputes. Clearly outlining their intentions and wishes in a comprehensive estate plan reduces ambiguity and provides a roadmap for the distribution of assets, thus promoting family harmony and reducing the risk of costly legal battles.
Lack Of Estate Planning In India Among Seniors
Despite the crucial importance of estate planning, a significant portion of the population continues to neglect creatinge a Will, or engaging in comprehensive estate planning.
Statistics show that most Indians, including senior citizens still do not have a Will in place. This lack of preparedness can have far-reaching consequences, affecting not only the transfer of assets but also the financial stability and well-being of the surviving family members.
By creating awareness about the importance of estate planning and providing relevant statistics, WisGen can take the necessary steps to safeguard their assets and ensure the smooth transition of wealth to the next generation.
The Benefits Of Estate Planning For WisGen
Having seen the statistics on asset loss, inheritance disputes, and the prevalence of estate planning in India, it is evident that writing a Will or creating a Trust is important for WisGen. Here are some key benefits of engaging in estate planning:
- Control and Clarity: By crafting a Will or establishing a Trust, seniors can maintain control over the distribution of their assets, ensuring that their wishes are carried out and their intentions are clear.
- Conflict Resolution: A well-drafted estate plan can minimise disputes among family members, promoting harmony and preserving relationships even after the individual’s passing.
- Asset Protection: Estate planning allows senior citizens to protect their assets from unnecessary taxation and loss, ensuring that their wealth is preserved for future generations.
- Beneficiary Protection: By creating a Trust, senior citizens can provide for the ongoing support and financial management of their loved ones, particularly those with special needs or circumstances.
- Probate Avoidance: Estate planning can help senior citizens avoid lengthy and expensive probate proceedings, ensuring that their assets are distributed efficiently and privately.
The Bottom Line
The statistics surrounding asset loss, inheritance disputes, and the prevalence of estate planning in India underscore the importance of estate planning for seniors. As a senior who is financially savvy, this is an important part of financial planning for you. WisGen can take advantage of Yellow’s (www.getyellow.in) team of estate planners, who are experienced in Indian estate laws and have 50+ years of experience between them. Yellow’s experts have already protected more than Rs 45,000 crore worth of assets for Indian families.
So go on, protect your legacy and pass it on safely and comfortably to your loved ones.
If you found this article useful and are interested in learning more about Estate Planning, we have a five-part series planned with Yellow.
You can join the first session using the following link: https://lu.ma/FundamentalsofEstatePlanning